Frequently asked questions about buying property in Croatia

Yes. Since Croatia joined the EU, citizens of EU and EEA countries can buy property largely on the same terms as Croatian citizens. Special rules apply to Swiss citizens and to citizens of non-EU countries, which we explain below.

Citizens and legal persons from EU member states and from Iceland, Liechtenstein and Norway generally buy property on the same terms as Croatian citizens. Approval from the competent minister is not required. Certain areas are excluded, in particular agricultural land.

Swiss citizens can also generally buy property on the same terms as Croatian citizens. However, when ownership is entered in the land register, they must also provide a certificate of temporary residence in Croatia.

Citizens of countries outside the EU, the EEA and Switzerland can acquire property provided there is reciprocity between their home country and Croatia. In these cases, approval from the competent ministry is required, which must be applied for in writing.

Not as an EU or EEA citizen. Citizens of non-EU countries need approval from the Ministry of Justice and Public Administration in Zagreb, which is granted in an administrative procedure.

Separate legal rules apply to agricultural land, which differ from those for buying ordinary building land and residential property. Anyone wishing to buy such land should have this checked legally in advance. A common solution is to buy through a Croatian company.

Foreign buyers can set up a Croatian company (d.o.o.) and buy property through it - this is used, among other things, to acquire land outside building zones or to organise holiday letting. A company involves ongoing obligations and costs; if required, we can put you in touch with specialist lawyers and tax advisers.

The process essentially involves: choosing and viewing the property, verbal agreement on price and terms, applying for an OIB number, legal checks of the documents, if applicable signing a preliminary contract with a deposit, signing the notarised purchase contract and finally registration in the land register.

The OIB (Osobni Identifikacijski Broj) is the Croatian tax and identification number. Anyone who wants to conclude a notarised legal transaction in Croatia needs one - so it is a prerequisite for buying property.

As a foreigner, you apply for the OIB in person at the Croatian tax administration Porezna uprava, online via the Croatian citizen portal or through a lawyer with a power of attorney. You need the completed application form and your passport. On site, the number is usually issued immediately, online or with a power of attorney it takes up to eight days. All steps: Applying for an OIB number.

In Croatia, a preliminary contract is often signed first. It gives both sides time to meet their obligations - the buyer can arrange the purchase money, the seller can complete any outstanding documents. The preliminary contract already sets out all the essential terms of sale that will later appear in the purchase contract.

A deposit or reservation of around 10% to 20% of the purchase price is usual, payable after the preliminary contract is signed.

The usual rule is: if the buyer withdraws or does not pay the balance on time, they lose the deposit. If the seller withdraws or sells to someone else, they usually have to pay the buyer back double the deposit.

This transitional period usually lasts between one and six months, depending on which documents still need to be sorted out. During this time, the lawyer checks the legality and completeness of the papers and the current land register extract.

The seller must appear before the notary to have their signature certified. Buyer and seller sign the purchase contract and the notary certifies it. The buyer then pays the agreed balance and the property is handed over.

No. It is possible for the buyer not to be present at the notarial signing. However, exactly how this works in practice depends on the notaries involved. The seller, on the other hand, must appear before the notary.

Yes, in principle this is possible. As only the seller's signature has to be certified before a Croatian notary, the buyer can in principle sign the contract and send it. However, more and more Croatian notaries then require notarisation (apostille) from the competent regional court, certified in the buyer's home country and translated by a court interpreter. Careful planning with a lawyer and translator is advisable.

The lawyer / notary or agent instructed files the purchase contract with the documents at the court. Often a priority notice is first entered in the buyer's name; once approved, the buyer is registered as the owner.

Contracts for property in Croatia must be drawn up in Croatian, even if the buyer and seller come from other countries. Negotiations are also usually conducted in Croatian.

A state-certified court interpreter is advisable, so that what is said matches what is written and any translation of the contract from Croatian into German, English etc. matches the Croatian version (which prevails in case of doubt). An agent is neither authorised nor obliged to carry out translation work.

In Croatia we always recommend involving a lawyer - to draw up the contract and to check that the documents are legal and complete. There, the notary usually only certifies signatures and does not draft the contract, as in Central Europe.

The notary in Croatia checks key formalities in the contract, usually certifies the seller's signature on the purchase contract and thus ensures that the signing is legally valid. The lawyer, on the other hand, drafts the contract.

The lawyer carefully checks the property's documents - including ownership, the land register extract, freedom from debt and, for example, the legality of the building documents. This ensures that the property can be sold without disputes.

Since joining the EU, Croatia has had an increasingly modern land register and cadastre system with comparatively transparent legal certainty. With older properties, legal claims may still date from earlier times, which is why a check by a lawyer is important.

Handover usually takes place as soon as the purchase contract has been signed and certified and the purchase price has been paid in full. The seller first confirms receipt of the money, after which nothing stands in the way of the buyer's registration. Physical possession is then transferred.

Escrow accounts are generally available in Croatia, for example through lawyers or notaries. Whether this makes sense in your case, or whether other forms of security would be better, is best discussed with your lawyer.

As a rule of thumb, we recommend budgeting around 7% to 10% of the purchase price for all additional costs. These mainly include real estate transfer tax, agency commission, legal fees, translation costs and smaller notary and administrative fees.

When buying as a private individual, the real estate transfer tax is 3% (since 1.1.2019). It is based on the purchase price stated in the purchase contract or the value of the property set by the tax authority.

If the seller is a company registered in the Croatian VAT system and shows VAT (25%) in the purchase contract, the 3% transfer tax does not apply to the buyer, as VAT is already included in the purchase price. This is often the case with new builds.

The usual buyer's commission in Croatia is 3% - 4% plus Croatian VAT. At Panorama Scouting, a buyer's commission of 3% plus VAT is only payable if a purchase actually goes through.

Expert lawyers usually charge 1% to 1.5% plus VAT for a property purchase in Croatia, depending on the work involved and the structure of the contract.

The notary's costs are comparatively low, in the two-digit or low three-digit range, as they usually only certify signatures. There are further small amounts for court interpreters, land register entry and registrations and re-registrations, usually in the low three-digit range.

The VAT rate in Croatia is 25%.

For a purchase price of 100,000 EUR (private purchase, EU citizen, private seller), an example looks like this: transfer tax 3% = 3,000 EUR, agency commission 3.75% incl. VAT = 3,750 EUR, legal fees around 1.25% incl. VAT = 1,250 EUR and other fees around 400 EUR - a total of around 108,400 EUR. The exact amounts may vary depending on the work involved and local rates.

For running costs, our clients usually budget around 2 to 2.50 EUR/m2 a year for taxes. The exact amount and the current legal position depend on location and use - Croatian tax experts, whom we are happy to recommend, can advise you on this.

Whether tax is payable on a capital gain when you sell later depends, among other things, on how long you have owned the property, how it is used and your personal circumstances. We recommend clarifying this with a tax adviser before selling, and can put you in touch with suitable experts if required.

Financing through Croatian banks is generally possible for foreign buyers, but is rarely used. Many buyers finance through their home country. We are happy to give you contacts for individual advice.

Croatia introduced the euro on 1 January 2023. Payments are therefore made in euros.

Running costs include taxes, electricity, water, waste collection and municipal charges, as well as insurance for the property. The amount depends on the location, size and use of the property.

Electricity costs in Croatia are roughly half the German level. The actual amount depends on consumption and how the property is used.

Holiday letting is possible, but requires an appropriate licence (which a new owner must apply for again) and compliance with tax obligations. EU citizens can obtain such a licence on the same terms as Croatian citizens. We are happy to put you in touch with experts for the details.

With full occupancy, a return of around 4% to 7% on rental income is currently usually assumed. There is also the chance of the property increasing in value.

No. Buying a property does not automatically lead to a residence permit in Croatia. Separate immigration rules apply.

After the handover, the contracts for electricity, water, waste collection and other connections are transferred to the new owner. Our local partners are happy to help you with these sometimes time-consuming tasks.

In principle, there is a legal right of public access to all sections of the coast in Croatia. Geographical features can nevertheless make individual beaches feel private in practice. However, the state or its public bodies, which own the immediate beach area and the seashore, can lease parts of it, e.g. to hotels, restaurants etc.

With a property right by the sea, you should plan measures against salt deposits from time to time. The height of the property above sea level should also be taken into account - above all because of wind and waves in the winter months. You should also allow for the generally fairly high humidity on the coast; if the property is not used all year round, measures such as regular airing and, if necessary, heating should be organised.

As a buyer, you only pay the usual local commission of 3% plus (Croatian) VAT - and only if a purchase goes through via us. If we do not find anything suitable, our service is free of charge for you.

We recommend deciding on the type of property, your budget and the most important criteria (size, bedrooms, distance to the sea, sea views, pool) in advance. It makes sense to research a few weeks before a viewing trip, request property details and select around three to five properties to view.

An agent brings neutrality and market knowledge to the purchase and supports you from choosing a property through to registration in the land register. Especially for foreign buyers who are not familiar with Croatian customs and Croatian property law, this means a great deal of extra security.