What documents does a foreigner need to have to buy real estate in Croatia?

In recent years, Croatia has become a very attractive destination for real estate investment, given its beauty, favorable prices, and developed market. Many foreigners decide to invest in real estate, but before they start buying, they often ask themselves what exactly are the conditions and documentation required to buy real estate in Croatia. Here we bring all the necessary information.

Which foreigners can buy real estate in Croatia?

Before we get to the documentation, it is important to know that not every foreigner can automatically buy real estate in Croatia. There are several legal conditions that depend on citizenship and the type of property you want to buy.

• Citizens of the European Union (EU): If you are an EU citizen, the process is quite simple. As an EU citizen, you can buy real estate in Croatia with minimal bureaucratic obstacles, because Croatia is an EU member, and the legislative framework allows a free real estate market within the Union.
• Citizens of non-EU countries: If you are a citizen of a country that is not an EU member, the situation is somewhat more complex. In that case, you can buy real estate only if your country has a mutual agreement with Croatia that allows foreign citizens to buy land. If such an agreement exists, the procedure for buying real estate will be similar to that for EU citizens, but it may be necessary to fulfill additional conditions.
• Buying real estate for residence: If foreigners want to buy real estate to live in, and they are not from an EU country, they can apply for approval, but this requires additional conditions, such as proving the intention to stay in Croatia for a longer time (e.g. work, study or retirement).

What documents are required to buy real estate in Croatia as a foreigner?

To buy real estate in Croatia, regardless of whether you are an EU citizen or not, you must have several key documents. Here are the most important:

1. Identity card or passport

For all foreign citizens, the basic document for buying real estate is a valid identity card or passport. This document serves as proof of identity. If you are from the EU, an identity card is sufficient to perform all legal actions, while citizens of non-EU countries must use a passport.

2. OIB (Personal Identification Number)

Every person who buys real estate in Croatia must have an OIB - a number that is specific to Croatian citizens, but also to foreigners who work or have property in the country. OIB is mandatory for all legal transactions in Croatia, including the purchase of real estate. You can get an OIB at the Croatian Tax Administration, and the procedure is quick and easy. Read here how to get your OIB.

3. Excerpt from the land register

If you want to ensure that the property you are buying has no legal problems, you need to request an excerpt from the land register. This document confirms the legal status of the property, including its ownership history, encumbrances or mortgages, any court proceedings and other important information. You can get an excerpt from the land register at the land registry department of the municipal court in Croatia, and you can also check the documentation on the "Uređena zemlja" portal.

4. Proof of solvency

Depending on the banks and credit conditions, a foreigner may be required to provide proof of solvency. This means that it is necessary to show your ability to repay the loan, if you plan to take out a housing loan to buy real estate. Banks usually request bank statements or income certificates from their home country, and in some cases they may also request credit bureau statements.

5. Proof of ownership or use of land

If you are buying land or a house on which you plan to build, it is important to have all the necessary building permits, urban plans and a building permit. These documents allow you to be sure that the land is not burdened with any legal or administrative problems, and that you have approval to perform the works.

6. Sales contract and proof of tax payment

As with any other buyer, foreign citizens need to have a sales contract that defines the terms of the transaction, including the price, deadlines and conditions of delivery of the property. After the sale has been completed, it is necessary to submit proof of paid real estate transfer tax (3% of the value of the property). This tax must be paid before you can apply for ownership registration.

7. Green card or other confirmations of the legality of the property

For safe business and transfer of ownership, foreign buyers need confirmation that the property meets all legal conditions for housing, as well as that it is not burdened with debts. This includes an excerpt from the energy certificate or confirmation of the legality of the building.

8. Certificate of residence registration (if applicable)

If you are a foreigner who plans to reside permanently in Croatia, you may also need a certificate of residence registration, which proves that you have a registered residence in Croatia. This document is important if you plan to move in and use the property as your main home.

Steps when buying real estate in Croatia for foreigners

Once you have collected all the necessary documents, the formal process of buying real estate follows. In general, this includes:

1. Negotiating with the seller: If you have found a property that suits you, start negotiations with the seller. You can engage a real estate agent to ensure that all the terms of the transaction are clear and fair.

2. Signing the contract: When the terms have been set, you will sign the sales contract, which must be certified by a notary public.

3. Registration in the land registry: After you have paid the real estate transfer tax and completed all the formalities, you must apply for registration in the land registry. This is a key step because only by registering in the land registry do you become the official owner of the property.

Buying real estate in Croatia can seem complicated to foreigners. Yes, there are a lot of documents that need to be collected, but with good preparation it can actually be very simple. From basic documents such as an identity card and OIB, to specific confirmations of the legality of the building and tax evidence, all these things should be kept in mind.