We pride ourselves on our ability to make buying/investing in property in Croatia simple and straightforward. Clavis d.o.o. Split can guide you through every step of the process.
Choosing Your Property
Details of properties are available on our website at http://www.croatiavisionproperty.com or at our regular local exhibitions. The choice is wide but possibly not as extensive as some other companies in the market.
We firmly believe in offering quality rather than quantity and have therefore chosen a select range of properties to bring to the market.
Viewing Trip
Buying a property in Croatia is a big decision for you. We understand this and recognize that there is no substitute for visiting Croatia to see the location, the development and the property for yourself.
We can assist with arranging a viewing trip to Croatia to allow you to see the region and view as many properties as you like until you find the one which best suits your needs.
You may prefer to be accompanied by a member of Clavis Agency or travel independently and meet with representatives during your time in Croatia. Whatever your preference your trip can be tailored to suit your individual timescale and budget.

Reserving Your Property
When you have found the right property for you, you can complete a Purchase Option Agreement Form, which gives details of the property and agreed price, and pay a holding deposit of EUR 1,000 to Clavis Ltd Split . The property will then be taken off our sales list for the next 30 days.
The holding deposit will be deducted from your first installment on the property.

How to Purchase the Property
There are 2 ways of buying property in Croatia if you are a foreign national; as a private person or by forming a limited company.
If you wish to buy the property as an individual it is essential to obtain the authorization from the Ministry of Foreign Affairs of the Republic of Croatia. This is a straightforward procedure that usually takes 6 months but can take longer.
During this period it is possible to complete the purchase and an official entry noting the purchase of the property is made by your appointed solicitor in the Land Registry Office. While awaiting approval you can take up residence or sell the property if you wish to do so.
The second method of buying property in Croatia is to establish a limited company. This company will have the same rights, obligations and legal status as any domestic company and it will be entirely owned and controlled by you.
Your solicitor will form a limited company on your behalf and your company can then purchase property without authorization from the Ministry of Foreign Affairs. This procedure takes up to four weeks but it does incur costs of forming and later on maintaining the company.
Purchasing a property via a company will also impose tax implications which should be carefully considered and expert advice should be sought.

Step by Step Guide to Buying in Croatia:
1. Choose a property or scheme that interests you.
2. Book a viewing trip to inspect the property or scheme of interest.
3. Reserve the property of your choice via a holding deposit.
4. Purchase the property following the procedures outlined.

The Preliminary Contract
The next stage is similar to purchasing a property in the Europe or US. You and the owner/developer sign and exchange a preliminary contract. This clearly sets out the price, payment arrangements, timescales, building guarantees and any penalties for late completion.
Clavis d.o.o. Split Agency can put you in touch with a reputable English speaking solicitor in Croatia to act on your behalf in the purchase of your property. The solicitor will formalize the preliminary contract, final contract, deposit, completion date and any other conditions deemed necessary.
After signing the preliminary contract you will generally have 10 days in which to transfer to the owner/developer your initial payment, which is typically around 10% to 15% of the agreed price of the property. If after signing the preliminary contract the vendor does not proceed you are entitled to a refund of twice your deposit.

Completion
On an agreed date the two parties will meet to sign the final contract. The signatures must be witnessed by a notary.
The documentation will then be sent to the local Land Registry and a request is made for the property to be registered in your name. The application for approval from the Ministry of Foreign Affairs will also be made.
Within 30 days from the conclusion of the contract the purchase must be registered at the authorized tax authority. A unified tax rate of 5% of purchase price for all types of real estate is charged based on the price of the property in the sales contract and the value estimate by the authorized tax authority in charge of the local area.
The purchaser is obliged to pay respective real estate purchase tax within 15 days from the day of receipt of the decision from the tax authorities on the exact tax amount due.

Initial Purchase Costs
* 5% Real Estate Transfer Tax
* 1.5% to 2% Solicitor's Fees
* Minimal Notary Fee c. 75,00 Kn(10EUR) (since the Notary only has to certify the signatures)
* Agency fee 3,66%
Annual On-going Costs
* Non-resident's tax currently charged @ c.€1.25 per m2 of internal property floor area
* Ground tax @ c.20 cents per m2
* Waste disposal charges @ c. €40
* Average house and contents insurance costs c. €400
Rental Income
If you wish to rent out your property you would need to notify the Croatian Tax Service. Tax is payable at 25% of the declared profit. This applies to owners renting out their property as an individual rather than a company.
Capital Gains
If the property is in private ownership and sold within three years of purchase then there is a capital gains tax of 35% of the difference between the purchase and the selling price. However, if the property is sold after three years there is no capital gains tax in Croatia.

REAL ESTATE FAQ

1. Can a foreign citizen buy a property in Croatia?
Yes, but after prior consent issued by the Croatian Ministry of Justice.
The statements of consent are issued to citizens of countries with which Croatia has signed a contract on reciprocity and in extraordinary cases, to citizens of other countries as well.

2. Can a foreign citizen sell a property in Croatia?
Yes, a foreign citizen as well as the corporations owned by foreign citizen, can freely sell real estates in Croatia .

3. I want to buy property immediately - how?
Foreign citizens can establish a corporation in Croatia, which upon completion of the incorporation procedure can immediately purchase the property.

4. Which documentation has to be presented to obtain the statement of consent?

• Purchase agreement in the original or a duly legalized copy
• Seller’s proof of title i.e. land registry certificate, in the original or a duly legalized copy, not older than six months
• Original certificate (not older than six months) issued by the authorities of the local administration responsible for urban planning (county departments), confirming that the property is within the construction zone envisaged by the zoning plan
• Proof of citizenship for the Buyer (certified copy of a passport)
• Proof of citizenship for the Seller (a copy of his ID or passport will do)
• Power of Attorney, in the original or a duly certified copy
• Photo copies of all the enclosed documents

In addition to these documents, it is also necessary to enclose the proof of payment for the administrative fee:

• HRK 50.00 for the application
• HRK 100.00 for deciding on property acquisition
• HRK 20.00 for any subsequent supplement to the application (in case of incomplete application)

Note: Administrative fees up to HRK 100.00 are paid in the form of appropriate stamp duty, while the amounts exceeding HRK 100.00 must be paid by means of a general payment order to the account of the National Budget of the Republic of Croatia.

5. How long does the procedure usually last?
It may take over 6 months for completion of the procedure, but you can complete the purchase meanwhile.

6. Does the agency provide legal support ?
Yes, we can arrange a full scale legal support with proffesional English speaking lawyers and independent solicitors.

7. How much down payment has to be paid upon conclusion of the contract?
Down payment is 10% of the sales price if not agreed differently between the contractual parties.

8. Does the buyer need to verify his signature with the notary public?
No, the buyer is not required to verify his signature, just the seller.

9. Can the contract be verified abroad and where?
Yes, in such a case it is the best to have it verified in the Croatian embassy or consulate. If you verify such a contract before a notary public, then this verification has to be translated into Croatian by a certified interpreter.

10. Can the purchase tax be paid from abroad in foreign currency?
The tax is to be paid by bank or post office money transfer. The amount is converted into HRK at the middle exchange rate by the National bank of Croatia at the day of payment. We provide our clients with full support concerning all kind of payments towards individuals and government agencies.

11. Which documentation has to be submitted to Land register in order to register the property on buyers name?

• request for registration of ownership in the land register
• a purchase contract signed and verified before notary public or abroad in Croatian embassy/consulate
• a Statement of Consent from the Croatian Ministry of foreign affairs
• a verified copy of the identification document or Power of attorney if the buyer is legally represented
• a proof of payment of the administrative fee -
  HRK 250,00
  

12. When purchasing land what is the minimal parcel size for development?
Minimal development parcel varies from location to location and usually equals 400-600 m2.
On some locations where the development is restricted, the min. development parcel size could equal 1.000 m2 or even more.

13. What is a minimal development distance from the sea?
A minimal distance from the sea is 70 meters measured from the point of the highest tide.
A new set of regulations concerning the development in the protected area of 1000 meters from the sea as well as on the islands has been announced.
A potential investor must pay attention to this when planning a construction by the sea and consult the professionals before purchasing land.

14. What is a planning permit and how can it be obtained?
The planning permit is a document issued by the county planning department, which enables the applicant to legally build objects in the particular area. It is based on consent obtained by several municipal and county agencies as well as the providers of the communal infrastructure: electrical power, water supply, sewage ... The county authority will issue planning permit for particular project, after all the documentation has been submitted along with the proof of the communal taxes payment.

15. Does the agency provide assistance with planning permits?
Yes, we arrange a proffesional assiatnce to our clients and cover all related paperwork.

16. What is the approximate cost of communal taxes required for obtaining the planning permit?
It varies according to local municipal regulations. 10-20 EUR per square meter for the average family house in the Split area.

17. Once obtained, how long is the planning permit valid for?
The planning permit is valid for 2 (two) years. The investor is required to start construction within this period. After that s/he can apply for the extension of the planning permit.

Links to relevant sites:

Croatian Ministry of Justice (Croatian only)
Croatian Government