How buying real estate in Croatia works

1/ The process of buying a property in Croatia in points

Citizens of the Czech Republic can buy real estate or land in Croatia under the same conditions as Croats. The purchase can also be made to a legal entity based in the Czech Republic.

When you choose a suitable property with us and decide to buy, you need to take into account the following procedure, which CARTec Consulting/ Antenor will accompany you with:

• Conclude with CARTec Consulting / Antenor the Agreement on the future contract, after signing which you will pay the deposit. This step is very important because it will guarantee the blocking of the property in your favor so that you have enough time to prepare the finances and official formalities.
• Apply for a tax identification number (OIB)
• He opened an account with a Croatian bank.
• CARTec Consulting/Antenor will ensure a check of all the details, such as the origin of the real estate - title deed, extract from the cadastral map, situation, available drawing documentation, new entry in the real estate cadastre, or later building permit, etc.
• Sign the purchase contract, which must be provided with a notarized signature.
• Pay the remaining part of the purchase price.
• The transfer of real estate to the cadastre usually takes several weeks, but the buyer becomes the owner immediately after signing the purchase contract and paying the entire purchase price.

2/ Expenses related to the purchase of real estate and taxes in Croatia in general

• All legal services in Croatia range from approx. 1-1.5% + 25% VAT of the purchase price, include drawing up contracts, checking the legal status of real estate, registration in the cadastre, etc.
• Administrative fees, stamps, registration (approx. EUR 200)
• Real estate transfer tax is now 3% of the price (previously 4%)
• The real estate agency's commission is usually 3% of the purchase price + 25% VAT
• Real estate prices are quoted in EUR, payments are made in EUR.

It is also possible to arrange a mortgage with a Croatian bank for the purchase of real estate or land in Croatia. Czech banks also provide mortgages on real estate abroad, but the buyer is liable for the property located in the territory of the Czech Republic.

3/ Current costs of a property owner in Croatia

• Energy, water, gas, waste collection, internet
• Community fees for apartment buildings (price according to the size of the property)
• Tax on real estate intended for recreation (1 - 2 EUR /m2 /year)

4/ Bank account in Croatia

As part of the purchase process, it is necessary to have an account in EUR with one of the Croatian banks (money transfers from an account in the Czech Republic to a Croatian account, later all payments to energy and service suppliers).

5/ Conditions for potential rental of purchased property in Croatia

The best way to rent a holiday property in Croatia is through one of the local professional agencies. The commission is paid as a percentage of the profit from the rental, the amount of the commission depends on the services provided (advertising, marketing, check-in of guests, deposit acceptance, cleaning services, etc.)