As attractive as an investment country, Croatia offers investors and property buyers not only new but also historic properties at great prices, the current potential of the Croatian real estate market offers all-around opportunities for investors with different budgets set aside for their property purchase. Croatia is a member of the European Union and NATO and has an economy with active growth and strong industrial, agricultural, and tourism sectors. Croatia is home to some of the most beautiful beach houses in the world, the real estate that is presented on this market is profitable for investors from all over the world, which is why the request for a new apartment for sale in Baricevic, Croatia is popular among many investors who are looking to buy a profitable investment property precisely here. After all, the country’s infrastructure is at a high level, and real estate prices are actively continuing their growth. It is also one of the least polluted and environmentally protected countries in the world.
In terms of real estate portfolios and investment opportunities, Croatia offers excellent apartments, condominiums, villas, amazing beach villas, vacation homes, and other fully or partially built properties, renovated properties, and numerous office properties at great prices. You can buy various investment assets in Croatia. These characteristic features of Croatia with its sunny coast, blue sea, mild, temperate Mediterranean climate, and other key advantages make the Croatian real estate market as attractive as possible for vacationers, numerous investors, and permanent residents, making it one of the most sought after. When you are considering buying a property in Croatia, you should consider the following available options.
Croatia is a small, but extremely picturesque and actively developing EU member state on the Adriatic Sea. The mild climate, strong development of the economy in general, and tourism, in particular, make Croatia attractive for investments in real estate, the prices of which are only actively growing and will continue their active growth in the future. With the right approach, investing in Croatian real estate can be very profitable. The key aspect is to take into account the specifics of the local market and the nuances of buying and selling real estate with the participation of foreigners.
The city of Split
The city of Split is located on the well-known Dalmatian coast and has a large number of accessible beaches. The city of Split is now a well-developed city, with a developed urban infrastructure, and many Roman/Venetian fine architectural monuments. The city also has a forest park, numerous museums, galleries, sports facilities, chapels, and observation decks. Split offers new apartments, as well as renovated old houses, fully furnished and equipped with modern amenities. Beautiful beach houses are always in high demand, buying real estate in Croatia offers an unparalleled experience of buying affordable real estate, close to historic buildings, beaches, and cultural centers.
The city of Trogir
The historical city of Trogir is located partly on the mainland and partly on an island, both parts are connected by a bridge. Romanesque churches, Baroque and Renaissance buildings are only a small part of the ancient heritage and treasures of this impressive historical city, also known as “Beauty in Stone” or “Museum of the City”. Cathedrals, palaces, castles, city gates, and other cultural, ancient historical buildings that attract numerous tourists and people from all over the world make the city great for investing in real estate, which is actively interested by investors and vacationers from different parts of the world. In addition to beautiful villas and modern houses by the sea, Trogir also offers numerous plots of land, renovated houses, and modern apartments for sale at favorable prices.
Island of Brac
With an area of approximately 396 square kilometers, the island of Brac is the largest island on the Dalmatian coast of southern Croatia. Agriculture, fishing, and tourism are actively developing, these areas contribute to the strengthening of the island’s economy. The island has some of the most picturesque beaches of the Adriatic Sea, which attract tourists from all over the world who visit the island with its natural beauty. Vacationers from all over the world are interested in buying investment real estate because the region has important and special folk traditions, interesting cultural events are held here, and a great historical heritage has been preserved here. You can buy luxury villas in Croatia. Just a few steps from the picturesque beach, there are many available options, with affordable prices, and apartments with balconies overlooking the sea. Brač Island also offers plots of land, old stone houses (renovated or not), and various other properties for clients with different budgets. Other beautiful, culturally, and historically rich places to buy real estate in Croatia are places that offer extreme tranquility, help you get the most out of your vacations and leisure time, and the real estate market has a wide variety of properties available for purchase for a variety of residential needs.
What can foreigners buy?
The main legal acts governing the acquisition of real estate in Croatia are the Law on Property and Other Property Rights and the Law on General Administrative Procedure. According to the current legislation of Croatia, real estate buyers are subject to:
- Land – separate property (some land cannot be purchased by foreigners) for agricultural or non-agricultural purposes;
- A house, building, or structure that is separate property;
- Part of the building (apartment in an apartment building);
- Non-residential buildings (commercial real estate).
Who can be a real estate buyer in Croatia?
Organizations that can become buyers of foreign real estate are listed in § 355 of the Real Estate Act, namely:
- A natural person without citizenship of the Republic of Croatia;
- A legal entity if its registered office is outside the territory of the Republic of Croatia.
What documents are required to complete the process of purchasing real estate in Croatia?
One of the key conditions for foreigners when buying real estate in Croatia is the strict fulfillment of reciprocity conditions (reciprocity conditions mean that the property rights of Croatian citizens abroad are recognized by foreign countries on an equal footing with their citizens). Real estate cannot be purchased if there is no reciprocity between the buyer’s country of residence and Croatia. However, there are certain restrictions on buying real estate in Croatia:
- The purchase of agricultural and forestry land is impossible;
- An object that is considered a protected cultural monument cannot be acquired unless the municipality renounces the right to the object;
- Impossibility of purchasing real estate located in areas declared by law as areas where foreigners are not allowed to own property, to protect the interests and security of the Republic of Croatia.
Financial costs of buyers when purchasing real estate in Croatia
When transferring ownership of the real estate, a real estate transfer tax of 3% of the market value is levied. This tax is paid after the buyer approves the real estate sale agreement. When buying new buildings, that is, when selling for the first time, real estate transfer tax is not paid. Value-added tax is charged at a flat rate of 25%. The broker’s commission is 3-6% and is paid separately by the buyer and the seller. Croatian real estate agents are often not licensed to carry out activities related to the purchase/sale of real estate in Croatia, so buyers should be careful when communicating and actively working with them. Registration and other fees are between 0.01% and 0.05% of the real estate value and must be paid after the deal is approved. Notarial activity costs the parties 1% of the value of the object (the order of payment of costs is determined by the parties in advance).
Five key reasons to buy a profitable investment property in Croatia
Beautiful nature and warm climate. This attracts tourists and allows them to enjoy life here. Stable economy. This country is a member of the EU, where all the necessary conditions for doing business and a high standard of living have been created. Croatia has small built-up areas and many nature reserves. This means that there is not much new real estate, and real estate prices there are constantly rising. Land and buildings are not taxed. Instead of these costs, you only need to pay a fee (approximately 3% of the property value) for declaring the property. Since it is difficult to obtain a building permit for real estate in Croatia, this phenomenon ensures a high level of real estate quality. Real estate prices in Croatia (as well as the country’s economy) continue to grow actively, the tourism sector is developing at the fastest pace, so buying a house here is profitable from the point of view of investments. You can register a legal entity to open a business in Croatia in the future. Doing business on the European market is not a mandatory condition.
What is the procedure for real estate registration?
The contract for the sale of real estate in Croatia must be drawn up in the form of a notarized valid legal contract of sale. The purchase contract must be concluded in the Croatian language. The parties can conclude a contract in one stage (a contract of immediate purchase and sale) and two stages (a preliminary contract and a final contract of sale). When concluding a contract of sale for a fixed term, the expected purchase price of the property is usually paid (5-15% of the value of the property). After drawing up and signing the sales contract, the buyer must obtain a permit for the purchase of the real estate by foreigners. To obtain consent, it is necessary to apply for consent for a foreigner to acquire the right of ownership of Croatian real estate. Such an application must be submitted in person or by mail to the registry office and archive and attach the following documents:
The legal basis for the purchase of real estate (purchase agreement, donation agreement, lifetime management agreement, etc.), original or certified copy.
A document on the seller’s ownership of the relevant real estate, a copy of the real estate cadastre.
A document received from the relevant administrative body in the Department of Urban Planning and Spatial Planning on the legal status of the building (if it is located on the land plot indicated in the spatial plan) depending on the location of the building.
In the case of a foreign legal entity, proof of nationality (for example, a certified copy of a passport) or proof of the legal personality of the potential owner.
When submitting a power of attorney, the applicant must provide the original or a certified copy of the power of attorney.
In case the applicant is abroad and has not appointed a representative to represent his interests, the applicant residing in Croatia must appoint a representative who will accept all the necessary documents.
The application and accompanying documents will be considered from ninety (90) to one hundred and eighty (180) calendar days from the date of submission of the relevant application. Permits are issued free of charge. It should also be taken into account that if consent for the purchase of real estate is not received, a foreigner can submit another application within five years. Ownership is established by registration in the cadastre of the Municipal Cadastre Office and approval by the Minister of Justice of the Republic of Croatia after payment of property transfer taxes. Until this moment, the buyer has a limited ownership right (only the right to possess and use the property). Please also note that if you want to sell your property within 3 years of purchase, you will have to pay a tax of 35% of the property value.