How To Buy Properties in Croatia - A Guide.

Unlike in most Central European or other countries, most sellers in Croatia do not have exclusive agency agreements with brokers. Owners typically reserve the right to sell their properties independently or with multiple agencies. In Croatia, there is free competition among agencies, and it is common to find the same property listed by different brokers, sometimes even at different prices. This can occur when some brokers are not informed of price updates, fail to update their websites, or do not synchronize with real estate portals. As a result, buyers in Croatia face an additional disadvantage: agents will not provide any detailed location information (such as Google Maps links or land registry details) before the buyer signs an agency agreement. This agreement ensures that the buyer will work with the agency when purchasing the property.

Who is allowed to buy properties in Croatia?

In general, EU citizens have nearly the same rights as locals or Croatian citizens when purchasing properties in Croatia. However, foreigners are not allowed to buy agricultural land plots as private individuals without establishing a Croatian company (e.g., d.o.o.). Citizens of other countries (USA, Russia, China, etc.) should check bilateral agreements.

However, it may also be beneficial to establish a Croatian company, especially if you plan to rent your holiday home to guests during the summer. We can assist by recommending tax accountants (English or German speaking) or professional lawyers.

First of all, you should carefully consider the primary purpose for which you want to buy a property in Croatia. Is it intended for your everyday life (e.g., in retirement), or should it serve as a holiday home for just a few weeks each year? What type of property will best suit your needs? Are you looking for a house, an apartment, a building plot, or even a property within a complex or resort? Which region might be the best fit for you, and what are the cultural differences to consider? Based on our experience, it is important to define at least the following criteria:

Type of property: House, villa, apartment, building plot, or property in a resort?

Style: Newly built, modern, stone house, or Mediterranean?

Location: Istria, Kvarner Bay, Dalmatia? Any preferred micro-locations?

Size: How many bedrooms/bathrooms?

Max. distance from the sea: Within walking distance or seafront only?

Main purpose: Private use, or also suitable for holiday rentals?

Budget and other preferences: Please also inform your broker about your budget and any additional preferences, such as a swimming pool, garden, large terrace, etc.

Please note that viewings with professional and licensed brokers should always be free of charge. Additionally, ensure that your broker is fluent in your native language. While this may not be necessary for the initial viewing, it becomes highly important if you develop further interest in a property. Panorama Scouting Real Estate Agency for Croatia guarantees that viewings will be conducted in fluent English, with German and Croatian also available.

IMPORTANT! Please double-check, as mentioned above, that you do not view the same property twice with different agents.

IMPORTANT! If you decide to view a property in Croatia on your own, without an agency, please ensure that if you develop further interest, you have a local lawyer on your side. This lawyer should verify all documents (land registry, building permit, usage permit) before signing any pre-contract or contract.

Negotiations / Find A Lawyer You Trust

It can generally be said that almost every property price in Croatia is negotiable—at least to some extent. However, experience shows that older houses are usually more negotiable than new constructions. Once you have agreed on a final price with the owner, the next step is to find a professional lawyer who will thoroughly review the documents, suggest an appropriate contract structure, and also draft the contracts. If you need any assistance in finding an English- or German-speaking lawyer in Croatia, please let us know. We recommend choosing a local lawyer who specializes in real estate sales in Croatia.

When you have reached a final agreement on the price with the owner, the next step is to determine which legal structure of the buying process is most suitable for the current situation.

Pre-Contract: A pre-contract is a legally binding agreement that reserves the property for a specific period, which can be mutually agreed upon by both parties. It is often the best solution if either the buyer, the seller, or both need additional time before signing the final agreement. The pre-contract typically involves a deposit of 10% of the purchase price. Croatian framework legislation suggests contractual penalties if the seller breaks the contract, usually amounting to double the deposit (around 20%). If the buyer breaks the pre-contract, the deposit is forfeited. However, these terms and conditions are freely negotiable.

Indicators for a Pre-Contract from the Seller: Legalization in process, usage permit still pending (often the case with newly built properties), inheritance clarifications, energy certificate, building still in progress.

Indicators for a Pre-Contract from the Buyer: Financing pending.

Contract: If all necessary documents are available and the lawyer approves, a final contract can be signed immediately.

After the contract is signed the buyer is obliged to pay the full among (less the deposit) within a agreed time to the seller. After the payment has arrived the lawyer of the local agent on place submits the documents to the court for the registration in the land registry.

When buying a property in Croatia, you should plan for additional purchase costs amounting to 7% - 10% of the purchase price to be on the safe side.

- Real Estate Transfer Tax (RETT): 3% of the purchase price

- Broker Commission: 3% (+ VAT)

- Lawyer (pre-contract and contract): 1% - 1.5% (+ VAT)

- Notary Services: Approximately 70 EUR - 150 EUR

- Official Court Translator, service fees for registration and re-registration of utilities (electricity, water, telephone, internet, etc.): Smaller additional fees

TOTAL: 7% - 10%

And now, enjoy our extensive selection of properties along the Croatian coastline.