A Czech or Slovak citizen is not limited in any way when buying real estate in Croatia and can own it as a private or legal entity. This does not only apply to agricultural and forest land, which cannot be purchased by foreigners or foreign legal entities.
The purchase procedure:
1. Signature of the reservation contract, paying a deposit of approx. 5,000 EUR
As an expression of will and real interest in the purchase, the person interested in buying real estate concludes a reservation contract (rezervacijskij ugvor) or a straight future purchase contract (predugovor). The reservation contract anticipates the conclusion of a future purchase contract, exceptionally equal to the purchase contract.
2. Preparation of documents
In order to buy a property, it is necessary for the buyer, a private or legal entity, to have an OIB – a personal identification number, that is necessary for communication with the authorities, at the time of the real estate purchase, especially with the tax office and the department of the relevant district court and cadastre. The OIB is processed while waiting (forms available online can also be sent in advance by post and the OIB can then be picked up at the counter of the relevant tax office), or it is processed by a local lawyer on the basis of a power of attorney. You cannot be registered as a new owner without an OIB, and the OIB must therefore be part of the purchase contract.
Documenting of all documents by the seller, checking the obligations of the previous owner: title, fees, encumbrances, plans, building permits and certificates (everything will be ensured by the lawyer who will represent you in Croatia).
3. Signature of the future Purchase Agreement – Predugovor – payment of 10% of the price
The future purchase contract addresses the exact conditions of the purchase, including the method of payment of the purchase price. Upon signing this contract, the agreed first instalment of the purchase price of the property, usually 10% of the price, is made directly to the seller, unless both parties agree otherwise. This contract can be signed by a lawyer under a power of attorney.
4. Signature of the final Purchase Agreement – Kupoprodajni Utdrog
The purchase contract is concluded after the purchase is formally approved by the buyer’s lawyer, who checks the necessary documentation for the property. By signing the purchase contract, either the purchase price that has already been paid is confirmed, or this purchase contract determines by when the rest of the purchase price must be paid. In the first case, the tabular izjava (declaration of payment of the purchase price) is part of the contract, in the second case, this declaration is signed after the actual payment of the purchase price. By paying the purchase price, the buyer becomes the full owner in accordance with the provisions of the purchase contract.
5. Post-sale actions
Transfer of energy, water, gas and other legal acts – performed by a lawyer on the basis of a power of attorney.
Estimated costs associated with buying a property in Croatia are:
• Real estate transfer tax (3%) for “second-hand” real estate; for new buildings (not older than 2 years from approval and not yet used), the buyer does not pay the tax.
• Costs of fees for legal services and other fees associated with the purchase (1% + VAT on the price of the property – legal services + stamps and notarized signatures)
• Real estate agency commission of 3% of the purchase price plus the relevant VAT
• Optional translations by a court interpreter
Costs associated with running a property (apartment ownership and maintenance) in Croatia are:
Note: Regular running costs for a 2 bedroom flat:
Water (water supply) €165/year
Electricity (HEP) €300/year
Sewer (if there is a sewer) (odvodnja) 80 €/year
Solid household waste (rubbish) €130/year
Radio and TV fee (concession fee) €240/6 months
Internet and TV connection €280/6 months
Property insurance €400-600/year
Utilities (communal fee) 110 €/year
VGI (rainwater) (rainwater) €50/year
Tax from renting a holiday property €240/year
Residence tax (bore tax) 50 €/year
Repair fund €280/year