Law and legal questions
There are a lot of legal regulations and laws in Croatia, and they are all about buying and selling real estate or are connected with real estate In short lines we will try to give you answer to the most frequent questions related to real estate buying or selling. If you would have questions that are not mentioned below feel free to contact us directly in the agency.
What kind of documentation client who buy real estate needs to bring?
Proof of Croatian citizenship as a certificate of nationality, passport or personal ID.
Copy of any of above mentioned documents is accepted if the original is brought in short period.
Can foreign citizens buy real estate in Croatia?
Yes they can, but with acceptance which is issued by the Ministry of Justice of Republic of Croatia. This kind of acceptance are issued to the citizens of those countries with which Croatia has signs the agreement of reciprocity, and in extreme cases to the citizens of other countries.
Procedure for having the acceptance is following: when foreign citizen decides to buy a real estate in Croatia he needs to sign buying and selling agreement with se seller of the property. In this phase the agreement doesn't have to me validated with public notary. When Ministry gives the acceptance foreign citizen has the right to write in books the property on his name in land registry of the communal court and than he pays tax on the buying of the real estate. Foreign citizens who open or have already opened d.o.o in Croatia can buy the real estate on the name of the company.
Is it allowed to foreign citizens to sell the real estate in Croatia?
Foreign citizens weather they are natural or legal entities without any limits can sell properties in Croatia.
What is the tax amount in Croatia?
Republic of Croatia has unique tax amount and it is 5% on buying any kind of real estate and transaction that are related to it. Tax is based on selling price of the real estate offered in buying and selling agreement and estimates value of the real estate from the authorized court's in the field where the real estate is. According to tax law tax for the buying the real estate pays buyer or seller in the name of buyer if the parties agree to that.
What is the tax amount in case of exchange of the real estate?
The same amount of 5 % but here both owners of the real estate which are changed pay 5% from the value of their property.
When do you need to pay tax for selling the real estate?
After concluding and certificating then buying and selling agreement the obligation of the buyer is to bring a copy of the agreement to the local tax office in the period of 30 days from the certification in public notary's office. Public notary also needs to bring one copy of the agreement to the local tax office. The obligation of the buyer is to pay the amount of tax which is determined from the tax office in the period of 15 days from the receipt of the exact amount of the tax from the tax office. If the tax is not paid in time then additional interest has to be paid for each day over the stated period.
Does the seller need to pay tax when he sells the real estate?
No. He has to pay tax only in case that he sells the property in 3 years from its buy or if he sells it more than he has paid for it. In that case he has to pay 35 % of tax for the difference in price that he has made.
Does a buyer need to certificate together with seller his signature on the buying and selling agreement?
Yes he can be it is not obligatory.
What is the amount of deposit that has to be paid when making a deal?
Usual deposit is 10 % of the selling price or different if the parties have agreed differently.
Is it possible to pay tax for the buying or selling real estate in foreign currency?
Tax is paid by bank transfer or through mail. The amount is transferred into Kuna at middle course of Hrvatska Narodna Banka on the day of payment.
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