A Step-by-Step Guide to Buying Property in Croatia

A Step-by-Step Guide to Buying Property in Croatia

Buying real estate in Croatia involves several legal and administrative steps. Whether you are an EU citizen or a third-country national, here is the standard procedure:

1. Obtain a Personal Identification Number (OIB)

Before you do anything else, you need an OIB (Osobni identifikacijski broj). This is a tax identification number required for any legal transaction in Croatia, including opening a bank account or signing a contract. You can obtain this at the local Tax Administration office (Porezna uprava).

2. Verification of Property Status

Once you find a property you love, you must perform “due diligence.” This involves checking the Land Registry (Zemljišne knjige) and the Cadastre (Katastar) to ensure:

• The seller is the actual owner.
• The property has a “clean title” (no active mortgages or legal disputes).
• The building has a Usage Permit (Uporabna dozvola), which is crucial for newer builds.

3. The Pre-Contract (Predugovor)

In Croatia, it is common to sign a Preliminary Agreement. This document defines the property, the price, and the completion date. At this stage, the buyer usually pays a down payment (capitula), which is typically 10% of the purchase price.

Note: Under Croatian law, if the buyer backs out, they lose the deposit. If the seller backs out, they must pay the buyer double the deposit amount.

4. The Main Contract and Notarization

The final Sales Contract (Ugovor o kupoprodaji) is drafted, usually by a lawyer. To be legally binding for land registry purposes, the seller’s signature must be notarized by a Croatian Public Notary (Javni bilježnik).

5. Payment and Tabular Statement

After the contract is signed, the buyer pays the remaining balance. Once the seller receives the full amount, they issue a Tabular Statement (Tabularna isprava). This is a document where the seller confirms they have been paid in full and explicitly allows the buyer to register as the new owner.

6. Registration of Ownership

Your lawyer or the Public Notary will submit the application to the Land Registry Court to transfer the ownership title into your name. This is the final legal step that officially makes you the owner.

7. Real Estate Transfer Tax

If the property is being sold by a private individual (and not a company within the VAT system), the buyer is usually liable for a Real Estate Transfer Tax of 3%. The Tax Administration will send a notice for payment after the contract is filed.

Important Considerations for Foreigners

Agricultural Land: As of 2023, EU citizens can now purchase agricultural land, which was previously restricted.

EU Citizens: Can buy residential and commercial property with the same rights as Croatian citizens.

Non-EU Citizens: Can buy property based on reciprocity between Croatia and their home country, but they require administrative consent from the Ministry of Justice.