Property Buying Guide for Croatia

Owing to the unprecedented development in the travel and transport infrastructure, travelling around the world has become easy and accessible for the upper middle class and the wealthy sections of society. With travel becoming more convenient, many people are thinking of buying a second home in a foreign country located in Europe or Asia. This second home is often meant to act as a holiday home or a retirement destination. Sometimes, a second home is also seen as a form of international investment.

Buying a Property in Croatia

Many consider purchasing a home in Croatia for the following reasons.

• Pleasant climate.
• Wonderful beaches.
• Improving infrastructure.
• Interesting and varied landscape.
• Wide choice of villages, towns and cities to invest in.

As of February 2009, buying property in Croatia has become easier for foreign nationals following certain policy changes. Foreign nationals can now buy on almost the same terms as local residents. This might encourage more foreign buyers to invest in Croatian property.

Most international buyers purchase homes in the areas of Istria, Kvarner and Dalmatia.

Istria

The Istrian Peninsula is situated in northern Croatia. This part is popular with international buyers because of its beautiful countryside and attractive coastline. Pula in Istria is the main destination airport. The town of Rovinj has many restaurants and is a fishing port as well.

Kvarner

Here both Opatija and Crikvenica have retained a certain old world charm. Opatija has some gorgeous buildings from the time of the Austro-Hungarian Empire.

Crikvenica is famous for its long beach and mild climate. The atmosphere here is said to suit those with respiratory problems.

Dubrovnik and Dalmatia

This part of Croatia is famous for its vineyards, olives groves, national parks and the peaceful picturesque seaside town of Cavtat. Pleasant seaside resorts here are popular with visitors who seek a quiet lifestyle.
Dubrovnik is an UNESCO World Heritage City. Dubrovnik also has a modern airport and many international visitors arrive here.

General Information about Croatia

The official language spoken here is Croatian. Other languages like Italian, Slovak, Serbian, Slovene and German are also spoken in certain regions of Croatia. The official currency is Kuna. Currency exchange is easily available at banks, authorized post offices and certain dealers. Banks usually function from Monday to Friday from 0700-1900 and on Saturday from 0700-1300. Credit Cards, Debit Cards and ATM Cards are accepted in large cities. However, smaller hotels and other establishments in towns and villages may require bills to be paid in cash.

Tips for Buying Property in Croatia

Buying property overseas can be complicated. In Croatia, complexities due to taxation and foreign ownership rules ensure that most buy property through a company. New rules – effective July 2010 - are expected to lead to higher effective taxes for foreign property owners. Here are some tips that will help ease the buying process:

Spend Time in The Country

Before investing in a property, spend holidays in different regions of the country to figure out which type of landscape and climate will suit you best. Visit a region at different times of the year to understand the changes in climate from one season to another. See if climate conditions will match your needs.

Get a Lawyer and Real Estate Agent

While hiring the services of a lawyer and an estate agent keep the following things in mind.

1. Hire the services of an experienced professional that you can trust.
2. See if a friend or acquaintance who has purchased a property previously can recommend a good lawyer.
3. Ensure both your lawyer and estate agent can speak in English and Croatian fluently. This is essential to avoid any misunderstanding and/or miscommunication in the future.
4. Ensure your lawyer is someone who works with your sole interest as a buyer in mind. The lawyer you hire should not have any business association with your estate agent or the developer. The  lawyer should not stand to gain in any manner from a profit made by the estate agent.
5. Work closely with your lawyer to ensure that you purchase a property with a clean title. Ask questions till your mind is completely at ease. Many Croatian homes are handed over from father to son for generations. Detailed paperwork in such cases might be nonexistent. Avoid investing money in such homes.
6. Getting a survey done through a surveyor might also be a good idea.
7. You can purchase property in Croatia as a private individual or through a company. Make sure the lawyer you hire and the estate agent you work with can give you sound advice on which option would suit you best and why. Do not act with insufficient information. Ask questions till you receive clear answers. After all, it’s your hard earned money at stake here.
8. In addition to all the points mentioned above, your lawyer and the estate agent should also be experienced professionals who can provide clear answers to your queries about the following:

• The reservation contract.
• The preliminary contract.
• Process of certifying contract by the notary.
• Document submission details to the Land Registry for recording of legal title.
• Payments for Real Estate Transfer Tax and PDV
• Real Estate Mortgage Options – local and international.
• Current Taxation Policy for Residents and Non-Residents.
• Temporary residence permit and things required to get such a permit.

Also visit the Croatian Embassy Website to seek additional information.