Legal Advice
If you plan to buy property in Croatia here are few information which might be useful:
1.) WHICH DOCUMENTATION BUYER HAS TO PRESENT WHEN HE PURCHASES REAL ESTATE PROPERTY IN CROATIA?
- Confirmation of the Croatian nationality, which is proven with certificate of citizenship, passport or ID card. A copy of these documents is sufficient, with simultaneous presenting of the original document.
2.) CAN NON CROATIAN CITIZENTS PURCHASE REAL ESTATE PROPERTIES IN CROATIA?
According to the Law of Croatia real estate, foreign citizens and enterprises can be owners of real estate in all the territory of Republic Croatia. Non-Croatian citizens need an approval of the Ministry. The approval can get the citizens of the states who have a reciprocity contract signed with Croatia, and in exceptional cases also citizens of other states.
From 02.2009 citizens from European Union are able to buy properties in Croatia with no limits!
3.) CAN FOREIGNERS SELL REAL ESTATE PROPERTIES IN CROATIA?
All persons and firms can sell real estate properties in Croatia, without limitations.
4.) WHAT ARE THE TAXES TO REAL ESTATE PROPERTIES IN CROATIA?
In Croatia one pays unique tax of 5% to all real estate properties and all transactions. The tax is calculated on the basis of the price in the Sales Contract and according to the estimation of Revenue Office in whose area the real estate properties are placed. According to law, those taxes has to pay the buyer or the vendor in the name of the buyer, if the parties agreed in such a way.
5.) WHAT ARE THE TAXES IN CASE OF REAL ESTATE PROPERTY EXCHANGE?
In case of the real estate property exchange each owner of the real estate property has to pay 5%.
6.) IN WHICH PERIOD THE TAXES HAVE TO BE PAID?
After signing the final Sales Contract the buyer must announce the taxes to the responsible Revenue Office, within 30 days after the sales date mentioned in the contract. The notaries have also to send 1 copy of the Sales Contract to the Revenue Office. The buyer must pay the taxes within 15 days after the receipt of the Revenue Office decision, and after expiration of this term, interest is charged for each further day.
7.) WHAT IS THE USUAL PREPAYMENT AFTER SIGNING THE PRELIMINARY AGREEMENT OR THE CONTRACT?
10% of the selling price usually, or according to the agreement between the vendor and the buyer.
