Real Estate Agency
20000 Dubrovnik, Croatia
Tel. +385 (0)20 311-344
Fax: +385 (0)20 311-345
There are many laws and regulations in Croatia that deal with selling and buying of real estate and that are connected with real estate
Here in short we offer answers to frequently asked questions concerning buying and selling of real estate.
If you have other questions, please feel free to contact our agency directly.
What documentation does a real estate buyer need to provide?
Proof of Croatian citizenship – citizenship certificate, passport, or ID card. Copies of these documents can also be submitted, provided that the original is shown when submitting the copy.
Can foreign citizens buy real estate in Croatia?
Yes they can, but with approval is issued by the Ministry of Justice of the Republic of Croatia. This kind of approval is issued to the citizens of those countries with which Croatia has signed an agreement of reciprocity, and in extreme cases to the citizens of other countries.
Procedure for receiving this approval is the following: when a foreign citizen decides to buy a real estate in Croatia, they need to sign a buying and selling agreement with se seller of the property. In this phase the agreement does not have to be notarized. When the Ministry issues the approval, the foreign citizen has the right to file the change of ownership to their name with the land registry of the municipal court, and they pay real estate purchase tax. Foreign citizens who already have a ltd. company set up in Croatia, can buy real estate to the name of that company.
Are foreign citizens allowed to sell real estate in Croatia?
Natural and legal persons from EU member states acquire legal ownership of real estate in Croatia under the same conditions as nationals of the Republic of Croatia.
Foreign nationals from outside the EU can buy real estate on the principle of reciprocity. Before buying a property, it is necessary to seek approval from the Ministry of Justice of the Republic of Croatia. Foreign citizens without mutual consent, i.e. reciprocity, can purchase the property on behalf of the company. The company is established with headquarters in the Republic of Croatia, whose owner is a foreigner who buys a property.
All foreign nationals are not able to buy i.e. to register the property in their own name which is located in the exclusive territories, which are:
- Agricultural land
- Protected nature areas
Republic of Croatia has single tax amount and it is 5%, for purchasing any kind of real estate and transactions that are related to it. This tax is based on selling price of the real estate stated in the sales agreement and on the estimated value of the real estate given by the appropriate municipal court appraiser. According law, this tax is paid either by the buyer or by the seller for the buyer if the parties agree to that
What is the tax amount for exchange of real estate?
The amount is also5 %, but in this case both owners of the real estates which are exchanged pay 5% of the estimated value of their property.
When does one need to pay real estate sales tax?
After the conclusion and notarization of the sales agreement, the buyer is obliged to file the copy of the agreement with the local tax office in the period of 30 days from the notarization of the agreement by the public notary. Public notary also needs to file one copy of the agreement with the local tax office. The buyer is obliged to pay the tax amount stated by the tax office within 15 days from the exact amount of the tax from the tax office. If the tax is not paid on time, additional interest will have to be paid for each day the initial payment was overdue.
Does the seller need to pay tax when they sell real estate?
No. The seller has to pay tax only in case the sale is concluded within 3 years from the initial purchase of the said real estate or if the new sales price exceeds the initial sales price of the real estate. In that case as tax they have to pay 35 % of difference in sales price increased by the additional municipal taxes specific for each municipality.
Does the buyer need to notarize with the seller their signature on the sales agreement?
They can, but this is not obligatory.
What is the amount of down payment that has to be paid when concluding a sales agreement?
The usual deposit is 10 % of the selling price, but this can be changed if both parties agree on it.
Can the real estate tax be paid in foreign currency?
Tax is paid by bank transfer or through postal service. The amount paid in is exchanged into kuna according to the medium exchange rate stated by Croatian National Bank on the day of payment.
Tt-05/861-2, dana 09.01.2004.god MBS: 090007817 • OIB: 54988721649 • Odgovorna osoba: Milena Burazor • Temeljni kapital: 200.000,00 Kn (uplaćen u cijelosti)
• Žiro račun: 2407000-1100358615, otvoren kod OTP banke d.d.