How to Buy Property in Croatia: Step-by-Step Guide to Real Estate in Croatia

Buying property in Croatia can be a challenging task, even for the most experienced buyers. With its unique laws and regulations, Croatia offers an attractive option for those looking to own or invest in real estate. However, there are many complexities involved in the process of buying property in Croatia. In this blog post, we will discuss the steps involved in buying property in Croatia and provide useful tips for those considering such a move. From understanding the tax system to seeking assistance from local experts on the ground, learn how to navigate the property buying process with ease.
 

How to Buy Property in Croatia?

If you want to buy property in Croatia, there are a few things you need to know. The process of buying property in Croatia is not as complicated as it may seem, but there are several key steps to follow and things to do before embarking on your property search.
Here are the points you should follow before starting your property buying journey in Croatia:

 

Find a Reputable Real Estate Agent

This is probably the most important step in the process. There are many real estate agents in Croatia, but not all are equal. Some agents may try to take advantage of foreigners who are not familiar with the Croatian real estate market. It is important to find an agent whom you can trust and who works in your best interest.

 

Get Your Finances in Order

Before you start looking at properties, you need to get your finances in order. You will need to have a clear idea of how much you can afford to spend on a property. It is also a good idea to inquire about financing options if you are buying through a bank loan before you start viewing properties.
This will give you a better idea of what you can afford and will make the entire purchasing process easier.


 

Decide on the Type of Property You Want

When it comes to buying property in Croatia, there are many different options available. You can buy an apartment, a villa, land, or even commercial space. It is important to decide on the type of property you want before you start your search and the reasons for buying it.

What to Look for When Buying Property in Croatia?

The first step in buying property in Croatia is consulting with a real estate agent. It is important to find an experienced agent who is familiar with the Croatian real estate market and who can assist you in the buying process. Once you find a property you are interested in, negotiations take place regarding the price, and after reaching an agreement, a legal office drafts the contract and reviews the property documentation once again before the contract is signed.

In Croatia, if you use the services of an authorized real estate agency, the buyer is obliged to pay the real estate agent's commission, which usually amounts to 3% + VAT (25%) of the agreed purchase price.

In the Relax real estate agency, the commission fee includes the entire purchase process. This includes the lawyer and legal services, services of a court interpreter (in case of foreign nationals), obtaining the Personal Identification Number (OIB), notary costs* (*except for the costs of loan agreement notarization), all necessary stamps for ownership registration, and transferring all utilities to the new owner (water, electricity, waste management, communal fee).

If you want to buy property in Croatia, there are a few things you should keep in mind. First, consult with a real estate agent to get an idea of the available properties and the price range you should consider.

Second, if you are using the services of a different real estate agency that does not include a lawyer in the commission fee, it is necessary to engage a lawyer at your own expense who will either draft or review every contract before signing it, as there have been cases where buyers have been deceived by fake sellers.

Finally, be aware of the risks of buying property in Croatia so that you can avoid them by engaging an authorized real estate agency, making your property buying process in Croatia smoother and stress-free.

 

How to Finance the Purchase of Property in Croatia?

If you want to finance the purchase of property in Croatia, you need to know a few ways to buy property. The first is that most Croatian banks will require a minimum down payment of 30%. This means that if you want to buy a property for €100,000, you will need to gather at least €30,000 upfront.
There are several ways to finance the remaining amount of the purchase price. One option is to take out a mortgage with a Croatian bank. Mortgage rates in Croatia are currently around 3-5%, making this a relatively affordable option.

The second option is if you have good creditworthiness, you may also be able to obtain a personal loan from a bank or other financial institution. Whichever path you choose, it is important to check if you have all the necessary documentation ready before starting the process. This includes your passport or ID, income certificate, and other financial documents.

Once everything is in order, you will be well on your way to owning property in Croatia! The Relax real estate agency can also assist you in this process, so feel free to contact us with confidence.

 

Basic Steps of Buying Property in Croatia

Assuming you are not a Croatian citizen, the general steps to buying property in Croatia are as follows:

1. Find a real estate agent or broker who is familiar with the Croatian market and can help you with the buying process.

2. Determine your budget and the type of property you are looking for (e.g., vacation home, investment property, etc.).

3. Search for properties that match your criteria and visit them in person with your real estate agent.

4. Make an offer for the property you wish to buy. After the offer is accepted, a deposit is paid to the seller (usually 10% of the purchase price) to secure the deal (a preliminary agreement is signed).

5. A lawyer prepares the Preliminary Agreement and Main Contract, which establish all the details of the sale, including the purchase price, financing method, and any special conditions of the sale. Both the buyer and the seller sign the Preliminary Agreement for the payment of 10% of the purchase price and the Main Contract before the full purchase price is paid.

6. The remaining purchase price is paid to the seller after signing the Main Contract with a Notary Public within the agreed timeframe, and after the seller issues a valid Tabular Statement (certified payment confirmation), the ownership of the property is transferred to the buyer. The process of registering the ownership usually takes a minimum of 7 days or more.

7. After signing the Main Contract, if the property is purchased from a person outside the VAT system (private person), the real estate transfer tax is sent to the buyer's address, amounting to 3% of the purchase price, and it is paid by the buyer as a one-time payment.

8. Lastly, if you have chosen to be secure and have used an authorized real estate agency, you are obliged to pay an agency commission of 3% + VAT of the agreed purchase price.

 

What Are the Benefits of Buying Property in Croatia?

If you are looking for an affordable European getaway that still offers all the charm and beauty of more popular destinations, Croatia should be at the top of your list. Not only is it a rising tourist destination (Lonely Planet named it one of the top 10 places to visit in 2020), but it is also a great place to invest in real estate. Here are some of the benefits of buying property in Croatia:

1. Affordable Prices: Property prices in Croatia are still relatively affordable compared to other European countries. This is partly due to the fact that it is not as well-known or developed as other destinations, but that is quickly changing. So, if you want to get in on the ground floor of a growing market, now is the time to buy in Croatia.

2. Breathtaking Landscape: One of the best things about Croatia is its stunning landscape. From picturesque coastlines and islands to charming villages and medieval towns, there is something for everyone to enjoy. And with over 1,000 islands scattered in the Adriatic Sea, you are sure to find your perfect piece of paradise.

3. Friendly Locals: Croatians are known as some of the friendliest people in Europe. So, whether you are buying a property for permanent residence or a vacation home, you can be assured that you will feel at home among the local population.

4. Rich Culture and History: Croatia is a country with a rich culture and history. Located on the Adriatic Sea, it has been influenced by various cultures over the centuries. These influences can be seen in its architecture, art, and cuisine.

5. Gastronomy: Croatian cuisine is a fascinating blend of Central European and Mediterranean influences. The country's cuisine is shaped by its excellent flavors, and the ingredients vary depending on the region. Croatians are passionate about food, and visitors to this country are often invited to a meal to experience the warmth of Croatian hospitality.

6. Safe Country: Croatia is a safe country. You don't have to worry about your safety as the crime rate is low, and the police are efficient. You can freely and safely enjoy this beautiful country and everything it has to offer with your family.