Safe real estate purchase in Croatia for foreign citizens

Yes, foreign citizens can buy and own real estate in Croatia, but the conditions differ depending on their country of origin. Citizens of the European Union, as well as citizens of countries that are members of the European Economic Area – including Iceland, Norway, and Liechtenstein – can freely buy real estate provided it is located within a building area, meaning it is intended for residential or commercial construction in accordance with the valid spatial planning documentation.

When it comes to citizens of third countries (countries outside the EU and EEA), they can buy real estate only if they obtain prior consent from the Ministry of Justice and Administration of the Republic of Croatia, which is issued only if the principle of reciprocity exists – i.e., if the buyer's country also allows Croatian citizens to acquire ownership of real estate under similar conditions.

It is also important to note that agricultural land is still restricted for most foreign citizens, except for EU citizens from July 1, 2023, when the protective clause banning the purchase expired.

If you are a foreign investor or a natural person from outside the EU and want to invest in Croatian real estate, the fastest and legally safest way is to establish a commercial company (e.g., d.o.o.) in Croatia. Our legal team can fully guide you through this process – from checking reciprocity, preparing the request for the Ministry of Justice to registering ownership.

Regent's services also include legal support in English, German, Italian, and Slovenian, so that you can understand every step and make informed decisions without language or bureaucratic barriers.

Yes, an OIB is mandatory. Whether you are a natural person or establishing a company in Croatia, an OIB is required for all official and legal actions: buying and selling real estate, registering in the land registry, opening a bank account, and paying taxes. The OIB is issued by the Tax Administration, and you do not have to be personally present – our lawyer can obtain an OIB on the basis of a power of attorney, thus saving you time and avoiding unnecessary travel.

The legal security of the property is key to protecting your investment. Our team performs a thorough legal analysis of each property before purchase. This includes insight into current and historical land registry extracts, checking ownership, possible encumbrances (mortgages, easements, legal disputes), as well as checking compliance with cadastral and spatial planning documents. We do not rely only on what is written in the land registry – we look for and check all additional risks, especially if the property was the subject of denationalization, inheritance, or conversion from social ownership.

Yes, and we strongly recommend it. Buying real estate is an important legal and financial decision. A lawyer specializing in real estate law ensures that your rights are protected and that the transaction is completely legal. Our agency cooperates with experienced lawyers who speak English and German, and they will draft or review contracts, perform a legal check, and represent you in all steps of the purchase.

Yes, a foreigner can conclude a sales contract outside of Croatia without the need for physical presence. It is enough to certify your signature in your country (at a notary public), and add a so-called apostille (international certification of the authenticity of the document). The document is then sent by mail to Croatia, where a lawyer takes it over and completes all other steps. Also, a lawyer can sign the sales contract on your behalf on the basis of a power of attorney.

The standard tax paid by the buyer is the real estate transfer tax in the amount of 3% of the market value of the property. The tax is not paid in the case of buying a new building from a legal entity in the VAT system because VAT is included in the price.

In case the buyer is not present at the Croatian notary, he must report the tax himself. If it is signed at a Croatian notary – the notary sends the report automatically.

No. If you are buying a new building from an investor who is in the VAT system, then VAT is already included in the price, and real estate transfer tax is not paid. This situation is most common with apartments and houses that are being sold for the first time by legal entities.

Yes, but only in certain cases. Income tax is paid when the property is sold within two years of purchase, unless the property was used for permanent residence. The tax is calculated on the basis of the difference between the purchase and sale price and amounts to 20%. Also, if someone sells three or more properties within 5 years, they may be considered to be engaged in an activity and become a taxpayer.

The process is as follows:

• Legal check of documentation and ownership
• Signing a preliminary contract (with a down payment, usually 10%)
• If you are from a third country – obtaining the consent of the Ministry
• Signing the main contract with a notary
• Paying real estate transfer tax
• Registration of ownership in the land registry
• Transfer of utility bills and insurance

Our team guides you through all these steps, regardless of whether you are in Croatia or abroad.

Yes, but with restrictions. Croatia currently has very limited opportunities for mortgage loans to non-residents. One bank offers an option with high interest rates. Therefore, most foreign citizens use a loan from their home country, and our lawyers then register the mortgage of the foreign bank in the Croatian land registry.

Yes, it is possible to use so-called escrow accounts – special trust accounts of lawyers or banks that ensure that the buyer and seller fulfill their obligations. The payment is not transferred to the seller until the buyer obtains ownership registration, and vice versa. Although this service carries additional costs, it provides maximum security. Our lawyers will assess whether an escrow is necessary in your case.

Opening an account in a Croatian bank is not mandatory, but it is strongly recommended. You can also make the payment of the purchase price from abroad, but a local account greatly facilitates the payment of utility bills, taxes, insurance, and communication with banks or insurance companies. To open an account, you will need an OIB, a passport, and proof of the source of funds, and our legal partners can guide you through the entire process and help you with the documentation.

No. Buying real estate in Croatia does not automatically ensure a residence permit. Foreign citizens who want to stay longer than 90 days need to apply for a temporary residence permit at the Ministry of the Interior (MUP). Buying a property can be a basis for obtaining a residence permit, but it is not a guarantee – each case is assessed individually.

Yes, the procedure is relatively simple and our team offers assistance in transferring all utility bills – electricity, water, gas, municipal fees, building maintenance, internet, etc. It is necessary to attach the sales contract and the new title deed or a certificate of submission of documentation for ownership registration. We also help with arranging property insurance.

Absolutely yes. In recent years, Croatia has become one of the most desirable destinations for living and investing in the EU, especially on the coast. A stable market, rising prices, and entry into the Schengen area and the eurozone have further increased the interest of domestic and foreign investors. New buildings, tourist apartments, rental villas, and luxury real estate are reaching record prices. If you are planning to buy property in Croatia, now is the ideal time.

Yes, they can – but under certain conditions. If you want to legally rent to tourists, you need to obtain a so-called categorization decision. EU citizens can do this in their own name, while citizens of third countries usually have to establish a company (d.o.o.) and register the rental through it. Another option is to cooperate with a travel agency that will rent the property on your behalf.

If you are buying property through a company or want to rent it out, you will need to establish a d.o.o. (LLC). The minimum share capital is €2,500, the notary fee is around €600–€800, and basic accounting costs start from €100 per month. There are also additional obligations: bank charges, corporate income tax (12% or 18%), and tax on profit distribution (12%). Our team of legal and tax advisors provides full support in establishing and running the company.