How the real estate sales process works in Croatia – step by step

You've found your ideal property, but you don't know how to start the realization? Buying a property entails great responsibility and is certainly a stressful experience, but although it seems that there are many details to be completed, with the right information and a little planning, the whole process becomes much easier and much less stressful.
After you have found a property that suits you, the first step is to thoroughly check the legal status of that property. Check all documents, including the land registry extract, building permits and energy certificate. This will help you avoid any inconvenience or surprises later. Then follows the negotiation phase of the price, which is important to ensure the best possible offer.
When all the conditions are agreed, the contract is concluded and, finally, the transfer of ownership. Each step is equally important, but with good preparation, everything can really go smoothly.

How to find the ideal property?

Those who have already found their ideal property can skip this step. However, if you are just starting your search, it is important to know where to start.
As a real estate agency, we can provide you with professional assistance in finding the ideal apartment or house. Our agents are there to guide you towards properties that best suit your requirements, negotiate with sellers on your behalf and carry out all the necessary checks to ensure that everything is in accordance with the regulations.
Also, if you wish, you can use different web platforms for searching, but it is always best to have an expert who will guide you through the entire process and help you avoid potential legal and financial pitfalls. When you find a suitable property, the next step is a thorough check of its legal status, to ensure that there are no obstacles or burdens on the property.

Required documents

First, you need to get a land registry extract, which you can request at the land registry department of the municipal court. This document provides important information about ownership, burdens and the rights of third parties to the property, such as mortgages, easements or other rights that could affect your ownership.
It is also necessary to check whether the property has the necessary building and usage permits. This is especially important for older properties or those that have been adapted, because you need to be sure that all works have been carried out in accordance with the applicable laws and regulations.
In addition, don't forget to check the energy certificate. If the property is older than 10 years, this certificate is a mandatory document that shows the energy efficiency of the building. This can help you estimate future heating or cooling costs, all of which will be of crucial importance once you move in.
All these checks are crucial to ensure that you will not encounter legal or financial problems after you buy the property. As a real estate agency, our agents can help you find all the necessary documents and carry out these checks for you, to make the whole process as safe as possible.

Negotiation and conclusion of a preliminary contract

After you have checked all the necessary information about the property, the next step is to negotiate with the seller. This is the phase in which you define key conditions - price, deadlines, method of payment, and other important details that will help you feel safe in the whole process.
When all the conditions are agreed, the next step is to conclude a preliminary contract. A preliminary contract is not a mandatory step, but it is recommended, because it ensures that both parties (buyer and seller) have clear conditions under which the transaction will be carried out. It allows you to reserve the property and obliges both parties to further act according to the agreed conditions. Although not legally binding, a preliminary contract provides additional legal security and reduces the risk of possible misunderstandings.
In the preliminary contract, you will define the amount of the deposit, which is usually 10% of the total price of the property. This amount acts as a kind of insurance for both parties. If the buyer withdraws, the deposit goes to the seller; while, if the seller withdraws from the sale, he is obliged to return double the amount of the deposit to the buyer. The preliminary contract is crucial because it clearly guides both parties and ensures that the transaction takes place in accordance with the agreed conditions.

Conclusion of the main sales contract

When all the conditions from the preliminary contract are met and both parties agree with the agreed conditions, the next step is the conclusion of the main sales contract. This contract represents a formal document that confirms the transfer of ownership of the property from the seller to the buyer. The main contract must be certified by a notary public in order to have legal force and be legally binding for both parties.
The preparation of the contract is usually taken over by a lawyer, whose task is to ensure that the contract is in accordance with the law and properly formulated. Both parties address the notary public, and the notary conducts a detailed procedure of checking all data and conditions from the preliminary contract. He also confirms the identity of the persons who sign the contract, performs the certification of signatures and conducts the entry in the land registers after the contract has been concluded.
The contract must contain several key items:

• Property information: An exact description of the property, including its location, area, land registry data and other specific characteristics, in order to clearly identify the property being sold.
• Price and payment terms: This is the most important part of the contract, which defines the total price of the property, payment deadlines and the method of payment (e.g. one-time payment or in installments). Also, the contract will define whether the buyer will make the payment via bank transfer or other methods.
• Date of possession: The contract must also specify when the buyer will take over the property, which can be immediately after signing the contract or on a later date, depending on the agreed conditions.

After all the conditions have been clearly defined, the buyer can start with the payment of the agreed price. At the moment when the amount is paid, the seller gives his tabular statement, which confirms the transfer of ownership to the buyer. This step is crucial because it means that the transfer of ownership is officially confirmed.

Payment of real estate transfer tax

When the main sales contract is concluded, the buyer is obliged to pay real estate transfer tax. In Croatia, this tax is 3% of the total price of the property or market value, depending on which is higher. The tax must be paid within 30 days of the conclusion of the sales contract. This tax amount is calculated on the basis of the price agreed in the contract or, if it is not in accordance with the market, on the basis of the assessment of the market value of the property by the Tax Administration.

For certain types of transactions or users, there are also exemptions or exemptions from paying tax:

1. Purchase of the first property: Citizens of Croatia may be exempt from paying real estate transfer tax if they are buying their first property. This relief applies only to properties that are used as housing, and not to commercial or investment properties.
2. Purchase of old properties: If a property older than 10 years is purchased, it is possible to obtain a tax refund if the property has been renovated or renovated, provided that the amount of the investment exceeds a certain threshold.
3. Exemption for buyers in the VAT system: In some cases, when a property is purchased from an entrepreneur who is a VAT payer, the buyer may be exempt from paying real estate transfer tax, while he is obliged to pay VAT which is included in the price of the property.
4. Purchase from the state or local authorities: Also, there is the possibility of exemption from real estate transfer tax when purchasing properties from the state or local authorities, provided that certain criteria are met, such as residential use.

After the tax has been calculated and paid, the buyer will receive a tax solution from the Tax Administration, which is crucial for the next step – the entry of ownership in the land registers. The tax solution, together with the rest of the documentation, will be submitted when proposing the entry of ownership rights in the land registers.
When everything is in order and the tax is paid, and the documentation has been submitted, the Tax Administration sends a confirmation that the obligation has been fulfilled, which enables the legal transfer of ownership from the seller to the buyer.

Registration of ownership in land registers

After the sales contract has been signed and the real estate transfer tax has been paid, the next key step is the entry of ownership rights in the land registers. This procedure is not just a formality – it legally confirms you as the owner of the property and allows you to freely dispose of your property.

Where to submit a proposal for entry?
The proposal for entry is submitted to the land registry court according to the location of the property. This means that you will submit the proposal to the court that keeps the land register in which the property is registered. You can submit the proposal:

• In person at the registry counter of the land registry department,
• By mail,
• Electronically via The Joint Information System of Land Registers and Cadastre (ZIS OSS), with the help of a notary public or a lawyer who are authorized users of the system

What documents are required?

For a successful entry of ownership rights, it is necessary to enclose:
1. The original or certified copy of the sales contract,
2. The seller's tabular statement confirming the transfer of ownership,
3. Proof of paid real estate transfer tax or a decision on exemption from paying tax,
4. Proof of citizenship of the acquirer of ownership rights (identity card, certificate of citizenship, passport),
5. Court fee in the amount of EUR 33.18 (proposal EUR 6.64 + registration EUR 26.54).

Deadlines and consequences of delays

The law does not prescribe the exact deadline for submitting the proposal for entry, but it is recommended that you do so as soon as possible, usually within 30 days of concluding the contract. If you do not submit the proposal within 60 days of acquiring the conditions for entry, the court fee increases to five times the amount.

Why is registration important?
Registration in the land register gives you:

• Legal recognition as the owner of the property,
• The right to dispose of the property (sale, donation, collateral rights),
• Legal security in case of disagreements or disputes.

Without registration, you are still formally unrecognized as the owner, which can lead to complications in the future.

For more details on the process of entering ownership, we recommend visiting the official website of the Ministry of Justice of the Republic of Croatia: Registration of Ownership Rights.

Final steps and transfer of keys

When the registration of ownership in the land registers is completed, the last step in the whole process of buying a property is the physical transfer of the keys and the takeover of the property. This is the moment when the buyer becomes the official owner and can start using the property according to their own needs.
The transfer of keys is usually made on the basis of the date agreed in the sales contract. That date can be immediately after the registration of ownership is completed or can be agreed for a later date, depending on the terms of the contract and the needs of both parties. At that moment, the seller hands over the keys to the buyer and enables him to access the property.
Although the transfer of keys is often the last step, it is of extreme importance that both parties, i.e. both the buyer and the seller, perform a final inspection of the property before the handover. This ensures that everything is in accordance with the terms agreed in the contract, that all repairs and agreed changes have been made, and that the property does not require additional corrections.
When the keys are handed over, the buyer can freely move into the property, arrange it according to their own wishes and use it for housing, and all legal obligations arising from ownership become officially recognized.