What documentation does the buyer need for purchasing property in Croatia?
Proof of Croat nationality, either by official forms of ID or passport. A copy of these documents is accepted if presented in conjunction with the original.
Can foreign nationals purchase property in Croatia?
Yes. However, you do need the approval of the Ministry of Justice and the Ministry for Foreign Affairs.
People with other than Croatian nationality can apply for and in the UK Ireland case are normally given approval.
The process is as follows:
If a non Croatian national decides to purchase a property in Croatia, a sales contract has first to be concluded with the vendor. At this point a notary public cannot yet officially approve the sale.
The sales contract, together with other necessary documentation, is then sent to the Ministry for Foreign Affairs in Zagreb. After the ministry`s approval the transfer of ownership can be registered in the land registry of the appropriate regional authority in the name of the purchaser. At this point the purchasing tax is to be paid.
Foreigners who plan to start their own company in Croatia or have already done so, can use this company to acquire properties.
Can foreigners sell property in Croatia?
Anyone can sell property in the Republic of Croatia without problems.
What's the purchase tax on property in Croatia?
Sales tax is fixed at 5% of the contractual value of the property.
This percentage is levied on all properties and sales. The amount payable is calculated on the basis of the property value as verified in the contract and of a value assessment by the regional taxation authority, in ehich the property is located.
According to the law purchasing tax is payable either by the purchaser or the vendor in his name, depending on contractual arrangements.
What is the tax if property is exchanged?
It is 5% , but in this case both purchaser and vendor are liable for 5% of the value of their Property.
When does the purchase tax have to be paid?
After concluding the sales contract the buyer has to notify the appropriate tax authority of the sale within 30 days. The Notary Public is also required to send a copy of the contract to the tax authority. The buyer must pay the tax within 15 days of receipt of the tax office`s demand. In the case of late payment interest is payable for every day`s delay.
Does the vendor pays tax when selling his property?
No. S/he only pays tax if the property is sold within three years of purchase and only if it is sold at a higher price than the original purchase price.In this case s/he is obliged to pay 35% un-earned income tax on the difference between purchase and sale price, plus local tax on the basis of locally applicable regulations.
Does the buyer (as well as the vendor) have to have his/her signature officially witnessed?
That depends on whether they wish to or not.
What is the deposit when the contract (precontract or purchase contract) is concluded?
In general 10% of the contract price or after according between the parties to the contract.
Is it possible to authenticate a sales contract abroad?
Yes it is. However, we recommend to have the contract authenticated in a Croatian embassy or consulate. If you have it witnessed at a notary public abroad, the authentication has to be translated officially into Croatian by an approved translator.
Can the property tax be paid in currency other than Croat?
The tax ahs to be paid by bank transfer or postal order. In the case of payment in foreign currency it is exchanged into Croat Kuna on the basis of the average rate of exchange of the National Bank of Croatia on the day of transfer.