Property buying in Croatia follows a fairly similar process to most other European countries. Perhaps the most important thing to remember is that you must use your own, English-speaking solicitor – who must be independent; not employed by the seller, your estate agent or a developer.

This will ensure you get accurate advice and that all necessary searches and checks are carried out to protect your interests.

It’s especially important to accurately establish the title of a property in Croatia, as houses have sometimes been passed through several generations of the same family without the Land Registry having been properly updated.

 

Step 1 – Reservation

Once you have found a property you would like to buy and agreed a price with the seller, it is customary to put in place a reservation contract, stating your commitment to the sale.

The estate agent’s fee may also be due at this point (2%-3%), depending on the type of property you are buying.

If you haven’t done already, now is the time to engage a local, English-speaking solicitor and if necessary a translator.

 

Step 2 – Preliminary Contract

As is the case in most European countries, a preliminary contract is signed before the final contract.

This binds both buyer and seller to the sale and includes details of any terms and conditions of the sale – for example checks and searches that must come back clear.

A 10% deposit will also be required at this point.

 

Step 3 – Application For Permit

As a foreigner buying a privately-owned residence in Croatia, you will require a permit from the Croatian Ministry of Foreign Affairs.

This is largely a formality – at least 98% of applicants are granted a permit – and is extremely slow, with permits sometimes taking up to 2 years to come through.

Fortunately, you do not have to wait for the permit to complete the sale and British applicants should normally have no worries about being granted a permit.

 

Step 4 – Completion

As is almost always the case in Europe, completion requires that the final contract of sale be signed by you, the seller and a Notary Public – a publicly-employed solicitor, responsible for overseeing property sales and land registrations.

Following this, the notary will ensure that your ownership is registered on the Croatian Land Registry, and you will be required to pay all outstanding fees and taxes, which will include:

• Legal fees: 1.5%
  
• Property Transfer Tax: 5%
  
• Permit application fee: £6.50 (approx.)
• Notary & Translator (required): £50 (approx.)
• Land Registry: £38

In total you should budget around 7.5% for all closing costs.

Some local taxes may also apply on an annual basis, including Holiday Property Tax and a non-residents tax, both charged based on the floor space of your property.

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