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How to buy property in Croatia


Mercury Estate specialists take care of the entire process of buying real estate in Croatia, from selecting the perfect property to meticulously assembling a comprehensive turnkey document package, all while extending the support to our investors through a wide array of concierge services.

STEP 1 Property selection

In Croatia it is rather difficult to obtain a building permit; therefore the main part of the real estate is the secondary market. However, there is an incredibly large choice. In addition to modern apartments and houses, there is an opportunity to purchase renovated apartments in 17th or 18th century houses. During the first stage the company monitors the market and a selection of property units is made according to the investor’s preferences, regarding terms and conditions and characteristics of property being sought.

 

STEP 2 Arranging a visit

The next step involves arranging a visit to Croatia in order to view the properties. This will include an arrival meeting and a property viewing itinerary.

STEP 3 Choosing a way to purchase real estate

There are two options for buying a property for a legal entity or an individual. Accordingly, the stages and costs are different for both cases.

STEP 4 Buying a property for a legal entity | Creation of the company

STEP 4 Buying a property for an individual | A power of attorney

It will be necessary to register a legal entity in the territory of Croatia. Creation of the company takes on average from 2 to 6 weeks.

The power of attorney allows an authorized lawyer to act on behalf of the buyer and in his interests.

STEP 5  Signing the contract of sale and purchasing

Signing the contract of sale and purchasing and payments of obligations under the contract.

STEP 6 Coordination with the Ministry of Justice

Next step

After the signing the contract of sale and purchasing and payments of obligations under the contract, the representative lawyer requests approval from the Ministry of Justice of the Republic of Croatia to purchase a real estate for an individual. The average approval period is 3-4 months. Unfortunately, obtaining this agreement is mandatory.

STEP 7 The additional costs when buying real estate

The additional costs when buying real estate for a company are:

  • Property rights tax - 5%;
  • Legal fees - an average of €3,000;
  • Notary services - 1% of the transaction;
  • Registration in the Land Registry - up to 0.05% of the rateable value of the property;
  • Establishment of the company €1,000 and €2,700 set up capital of the company, which may be in circulation;
  • Monthly turnover of the company - accounting, is approximately €120 - €200.

Important! When creating a company it does not necessarily have to have an activity, enough fixed capital in circulation and an accountant who will keep a record of this turnover.

 

The additional costs when buying real estate for an individual are:

  • A legal entity: It will be necessary to register a legal entity in the territory of Croatia. Creation of the company takes on average from 2 to 6 weeks. The upcoming additional costs when buying real estate for a company:
  • Property rights tax - 5%;
  • Legal fees - an average of €3,000;
  • Notary services - 1% of the transaction;
  • Registration in the Land Registry - up to 0.05% of the rateable value of the property.

 

Pay close attention to the all steps above and costs when choosing a property purchase option in Croatia.


Best real estate deals in Croatia


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