Buying property in Croatia: a guide for foreign buyers
A house in Istria, a flat in the Kvarner region or a holiday apartment in Dalmatia? Buying property in Croatia is not complicated once you know the order of the steps. Here is everything in one place: who can buy, what to check before paying a deposit (kapara), what the costs are and how the process works up to the registration of ownership.
- The process step by step
- What to check before the deposit
- Costs of buying
Who can buy property in Croatia
Citizens of the EU, the EEA and Switzerland
They buy on the same terms as Croatian citizens, without special approval. Special rules apply to agricultural land and land in protected areas.
Citizens of other countries
They can buy property if there is reciprocity with their country, subject to prior consent from the competent ministry. The procedure takes longer, so build it into your plans.
Buying through a company
Property can also be bought by a company registered in Croatia. This route comes with its own tax and accounting obligations, so go through it with a lawyer or adviser before you decide.
The buying process step by step
The order is almost always the same, whether you are buying a flat, a house or land.
- Find a property and ask the seller for its details: the address, the plot number in the land registry (zemljišna knjiga) and the cadastral municipality.
- Get an OIB – the personal identification number every buyer needs. It is issued by the tax administration (Porezna uprava), and you can also apply for it through a Croatian embassy or consulate.
- Check the property in the land registry and the cadastre: who the owner is, whether there are mortgages or other encumbrances, and whether the situation on the ground matches what is registered.
- Check the permits: the building permit and the use permit (uporabna dozvola) or the legalisation decision (rješenje o izvedenom stanju), as well as the energy performance certificate the seller must have.
- Sign the preliminary contract (predugovor) and pay the deposit, usually about ten per cent of the price, by bank transfer – never in cash without a receipt.
- Sign the purchase contract. The seller’s signature is certified by a notary (javni bilježnik), and the contract must contain a statement in which the seller allows your ownership to be registered.
- Pay the rest of the price in the way agreed in the contract, most safely through a bank or a notary’s escrow deposit.
- Submit the application to register your ownership in the land registry. You become the owner upon registration, not simply by signing the contract.
- The contract is reported to the tax administration, which issues an assessment for the real-estate transfer tax (porez na promet nekretnina). Pay the tax within the deadline stated in the assessment.
What to check before paying a deposit
Most problems when buying arise because something was missed before payment. Check the following before you pay any amount at all.
- The land registry extract: whether the seller is registered as the owner and whether all co-owners are registered.
- The encumbrances section of the extract: mortgages, easements, notes of disputes or enforcement proceedings.
- Whether the actual floor area and layout of the property match what is stated in the land registry and the cadastre.
- Whether the building is legal: the building permit and use permit, or the legalisation decision.
- The energy performance certificate – the seller is required to have it and to show it.
- Whether there are any debts for utilities, the building’s maintenance reserve fund or the municipal utility charge.
- For land: its designated use under the spatial plan, in other words whether you are allowed to build on it.
Costs of buying
On top of the price of the property, allow for additional costs. Agree the exact amounts in advance and have them put in writing.
Real-estate transfer tax
3% of the market value of the property. It is paid by the buyer, on the basis of an assessment from the tax administration.
VAT on new builds
When a new property is sold by a contractor or developer registered for VAT (PDV), the VAT is included in the price, and in that case no transfer tax is payable.
Notary
Certifying signatures or drawing up the contract and holding money in escrow are charged according to the notaries’ scale of fees.
Lawyer
Checking the documents and drafting the contract. It is not compulsory, but it is strongly recommended for foreign buyers.
Estate agent
If you buy through an agent, the commission is set in the brokerage agreement. Check the amount and who pays it before you sign.
Translation and interpreter
If you don’t speak Croatian, you will need a court interpreter when signing the contract, and documents sometimes need a certified translation.
Documents you will need
Get them ready in good time, especially if you are buying from abroad.
- A valid passport or identity card.
- OIB – personal identification number.
- A bank account, ideally in Croatia, for paying the deposit, the price and the tax.
- If someone represents you: a power of attorney certified by a notary and, if it was issued abroad, with an apostille as well.
- A translation of the contract into a language you understand, so that you know what you are signing.
Buying from a distance
You can buy property without living in Croatia permanently, but then caution matters even more.
- View the property in person or by video call with someone you trust.
- Give power of attorney only to someone you trust completely, and only for a precisely defined transaction.
- Never send money to the private account of someone you don’t know or through a money transfer service.
- Confirm every step in writing and keep copies of all documents.
Where to look
On Retemax you can browse properties by county and town. Most of the ads are on the coast, and you can search in your own language.
- Istarska županija
- Primorsko-goranska županija
- Zadarska županija
- Grad Zagreb
- Splitsko-dalmatinska županija
- Šibensko-kninska županija
- Zagrebačka županija
- Ličko-senjska županija
- Varaždinska županija
- Dubrovačko-neretvanska županija
- Krapinsko-zagorska županija
- Karlovačka županija
- Osječko-baranjska županija
- Vukovarsko-srijemska županija
- Međimurska županija
- Sisačko-moslavačka županija
- Bjelovarsko-bilogorska županija
- Brodsko-posavska županija
- Koprivničko-križevačka županija
- Požeško-slavonska županija
- Virovitičko-podravska županija
After the purchase
A few obligations only begin once you are the owner.
- Check the new land registry extract – you must be registered there as the owner.
- Pay the real-estate transfer tax within the deadline set in the tax administration’s assessment.
- For a house or flat that you don’t use as your permanent home, the municipality may charge an annual holiday home tax, and the municipal utility charge is also payable.
- If you want to let to tourists, you need approval and must register your guests, and the tourist tax (boravišna pristojba) is also payable.
- Owning property does not in itself give you the right to reside in Croatia – separate rules apply to residence.
Warning signs
If you notice any of the following, stop and check before you pay.
- The seller asks for a deposit before you have seen the land registry extract.
- The price is well below that of similar properties in the same place.
- The seller is abroad and cannot show you the property, but wants payment immediately.
- You are asked to pay in cash, into a private account or through a money transfer service.
- The person in the extract is not the person you are negotiating with, and there is no valid power of attorney.
Frequently asked questions
- Can I buy a flat or house in Croatia as a foreigner?
- Citizens of the EU, the EEA and Switzerland can, on the same terms as Croatians. Citizens of other countries can if there is reciprocity with their country and with the consent of the competent ministry.
- How much are the costs of buying?
- The largest is the 3% real-estate transfer tax, except for new builds sold with VAT. On top of that come the notary, the lawyer, an agent if you use one, and translation.
- When do I become the owner?
- Upon registration in the land registry. The signed contract is the basis for registration, but only registration makes you the owner as against everyone.
- Do I have to be in Croatia to buy a property?
- Not necessarily. The contract can be signed by someone holding your certified power of attorney, and some steps can be dealt with through an embassy or consulate.
- Do ads on Retemax cost anything?
- No. Browsing and posting ads on Retemax is free, with no commission.
This page is for general information only and is not legal or tax advice. Regulations change – before you buy, check the details with a lawyer, a notary or the tax administration.