Croatia » The Purchase Process

Property prices are quite different depending on the area of Croatia you decide to buy. Dubrovnik, which has received a lot of good press in the last years, is already very expensive place to buy property. The square meter of property has reached €6,000 (£4,000). In Southern Istria, towns like Pula, Medulin, Premantura and Pjescana Uvala prices are still much more affordable. An apartment with sea view in those areas could be valued at €2,000 (£1,400) per square meter.

Two choices exist for purchasing houses in Croatia. As an individual, foreign buyers can own real estate provided that the ‘condition of reciprocity’ is satisfied. Proof is attained from the Croatian Ministry of Foreign Affairs which can take several months. Alternatively, a foreign individual can register a company in Croatia in order to purchase houses – accordingly, permission is not required. However, purchasing a house via a company does impose tax implications.

Three key stages exist in the buying process:

1. Reservation Contract – in order to reserve the house.

2. Preliminary Contract – for a foreigner to apply for permission to buy a house via a deposit (circa 10%).

3. Final Contract – upon signing, the final payment is made and the purchase registered with the local Land Registry. A ‘Power of Attorney’ can be grated if the buyer is not in attendance at this stage.