LEGAL HELP

Buying Property in Croatia ???
This is what You need to Know!!!
WHO GUARANTEES TO ME AS BUYER THE LEGAL SECURITY BY PURCHASE REAL ESTATE OR USES OF OTHER
SERVICES, WHICH OFFER YOUR AGENCY?
Our agency in her offers has only real estates with verified papers from the land register and this directly checked in
Court register. Without complete and correct registered land certificates we don't put real estates in our offer. Also
Before the closing the sales contract one more time we make the verification of paper in order to absolutely protect our
client from any possible damage. For this are taking care of our high professional trained employees to which
protections of our clients and reputation of our companies is priority in the business.
Same rules are worth for all other services from our offer, we cooperate only with checked partners in the supply of
construction material, execution of building work and adaptations. To the clients we propose solutions which protects
his interests and we represent him in the realization of the same. For this are taking care of our high professional
trained employees to which protections of our clients and reputation of our companies is priority in the business.
Same rules are worth for all other services from our offer, we cooperate only with checked partners in the supply of
construction material, execution of building work and adaptations. To the clients we propose solutions which protects
his interests and we represent him in the realization of the same.

CAN FOREIGN CITIZENS OR COMPANIES BUY REAL ESTATES IN CROATIA?
Yes, they can and this in two the way, the first way is that asked the consent from the Ministries Of Justice and
Ministries Of Foreign Affairs. Consent be given to the citizens of those countries with which Republic Of Croatia has
the signed reciprocity and in exceptional cases be given to the other. Is necessary to deliver to the Ministry Of Foreign
Affairs (MFA) in Zagreb the verified example of sales contract and the determined additional documentation. After
receiving consent is possible to carry out with the ownerships registration and to pay the real property transfer tax.
The process may take from six months to a year (or longer), because the MFA (Ministry of Foreign Affairs)must obtain
a favorable response from the Ministry of Justice, Administration and Local Self-Government (Ministarstvo Pravosuda,
Uprave i Lokalne Samouprave) prior to approving the application.
Croatian proof of real estate ownership is the entry of the owner's name in the local Land Books for that specific
property. Local courts will not allow a foreign citizen to be entered in the Land Books without MFA approval.

The other way for the foreign national is to incorporate in Republic Of Croatia. In this way automatically without
further consents and approvals they acquires the claim to purchase real estate and their registration. This procedure
is much shorter (10-20 days). Companies’ registration in Republic Of Croatia cost around 500,00 euro and the
founding capital may be equal to the purchasing real estates values or minimum of 20.000,00 Kuna. Once
incorporated, the procedure for property purchase is the same as for an individual, with the exception that MFA
consent is no longer required. At the moment majorities of real estates across our agency sells in this way.

CAN FOREIGN CITIZENS SELL THEIR OWN REAL ESTATES IN REPUBLIC OF CROATIA?
All foreign physical and legal persons can without any difficulties sell their own real estates in Republic Of Croatia.

IS THERE ANY TAX TO PAY BY PURCHASE OF REAL ESTATE?
In Republic Of Croatia is unique rate cut from 5%on the real estates value and estimated administrations’ tax
depending on whose territory the real estate is. According to law the buyer pays real property transfer tax, unless the
buyer and seller doesn't agree differently.

I WANT TO EXCHANGE MY OWN REAL ESTATE FOR OTHER, AM I ALSO OBLIGED TO PAY TAX ON REAL ESTATE
IN THAT CASE?
Yes also, in that case of replacement is to pay tax for real estates in the amount of 5%on the assessed valuation and
this each owner by replacement pay 5%for one's real estate.

WHAT IS THE TERM FOR PAYING REAL ESTATES PURCHASE TAX?
After the conclusion of sales contract, buyer is obliged to report the buying and selling to the authorized tax
administration within 30 days from the date written on the sales contract and in time of 15 days from obtaining the
paying decisions. If the payment isn't made in the statutory term, pays interests for every day beings late. Notary
publics deliver one example of contracts to the tax administration.

CAN WE PAY REAL ESTATES PURCHASE TAX IN FOREIGN EXCHANGES?
Tax has been expressed in kuna therefore can be paid only in kuna. The payment alone is possible to make in any
bank, mail or other payment institutions.

DOES SELLER PAY TAX FOR SELLING REAL ESTATES?
If the case that he sells real estate before the expiration of three year from the purchase day and on the higher price
from purchasing, salesman is obliged to pay 35%tax on the difference from purchase prices and selling prices on
which at this moment sells the same and increased for the surtax which are determined along local self-governments.

WHAT IS THE USUAL DEPOSIT BY SALES PRECONTRACTS OR CONTRACT CONCLUSIONS?
As a rule is 10%from the agreed amount or according to the agreement between the seller and buyer.

IS IT POSSIBLE TO MAKE A CONCLUSION AND NOTARIZE OF SALES CONTRACT ABROAD?
Yes is possible, and is most simply to make a verification in the diplomatic mission of Republic Of Croatia. If you are
verifying it by the foreign notary, it is worth only if it has been translated by the authorized court translator in Republic
Of Croatia.

Note: Foreign Citizens may NOT acquire agricultural land, land in protected natural areas, forests or forestland.
Note: Protect yourself - Attorney or Realtor’s assistance recommended

Provided by:
“Hrvatske Nekretnine” Croatian Leading Real estate Agency.
Mr. Josko Dujmov, Attorney at Law ( Our Expert for Real estate Law)
“Silverio d.o.o.” Construction & Engineering Co.


For further assistance, or to Represent You and your Company, contact us at:
Email: LegalHelp@HrvatskeNekretnine.com
Phone: ++385 (0) 98-459-282
FAX:     ++385 (0) 21-896-138
Web: www.HrvatskeNekretnine.com

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