Are you thinking of buying real estate in Croatia? This can be a great idea for many reasons, because Croatia has so much to offer! Above all, it has amazing food, warm climate, beautiful seaside towns and great European connections. However, when buying a property in Croatia as a foreigner there are many things you need to take into account to ensure that everything goes smoothly. If you are able to hire a real estate lawyer, we definitely suggest you do so, because you will significantly facilitate the whole process. And to help you a little bit more, we decided to share with you a few tips for purchasing a property in Croatia as a foreigner.
1. Inform yourself about the rules and laws that apply to buying real estate in Croatia as a foreigner
There are some rules and laws that apply exclusively to the purchase of real estate in Croatia as a foreigner. And that means you will need a little more time, effort and money to get to your property if you are a non-resident and a non-EU citizen. However, these are simple protocols that you have to go through in order to get to the desired house or apartment smoothly and without much trouble.
First of all, it is necessary that, before you finish buying the property, you first seek the consent of the Ministry of Foreign Affairs of Croatia. This is one of the steps that many forget, and which requires a little more time. That is why optimal information can be of great importance to you, because it helps you to organize yourself adequately. It will take an average of half a year to get the consent of the Ministry, so it is important to take that into account.
Second, if you plan to rent your new property you will need to do so through a company. This will involve some additional costs that are not too high, but exist, so this is another thing to consider. Also, you should keep in mind that as a foreigner you will not be able to buy agricultural or forest land in Croatia, as well as property that is classified as cultural monuments.
Be sure to gather all the important information in time to make it as easy as possible for you to buy a property.
2. Take the time to find a perfect property for yourself
The real estate market in Croatia is really large and there are many properties on offer, so it is important to take some time to find one that fully fits your wishes and needs. If you want, you can do this part of the job yourself. There are many websites on the Internet that can help you in your intention to find Croatia real estate that fits your idea. Of course, if this whole process is too much for you, you can always hire a real estate agent who will make this process faster and easier for you.
While this part of the job can be quite tedious, keep in mind that if you take a little more time to find the right thing for yourself it will save you a lot of time, money, energy and nerves in the long run.
3. Go through the real estate records in detail
Once you find a property that meets pretty much all your standards and that seems like a good choice, it is necessary to go through real estate records to gather all the important information and prevent potential problems. Public records of property are available on the Internet where you can find basic information: what is the size of the property and what is its purpose, the names of all owners of the property, their registered addresses, and sometimes the OIB(s) of the owner. Lastly, you will find information on whether there is any any burdens or rights to the real estate and get a clear picture of that property. The last thing you want is to inherit burdens that do not concern you or to enter into negotiations that will take away a lot of your energy and end in an undesirable way.
4. Prepare the contract
Once you have found the perfect property for yourself and checked that everything is in perfect order with it, it is time to prepare a contract. The practice is that the sales contract is prepared by the buyer, ie. his or her lawyer. As mentioned earlier, it is advisable to have a real estate lawyer by your side to ensure that all legal protocols are followed and that you do not encounter additional obstacles. A lawyer will help you prepare a sales contract that will guarantee that your interest and money are fully protected.
If you agree with the seller, there will be a deposit on the contract (which is usually 10%). The deposit guarantees that both parties will comply with the contract items. If the buyer does not comply with the contract, they lose the deposit, and if the seller does not meet the conditions, he or she must return the deposit in double the amount to the buyer.
Prepare a contract for yourself and the seller and make sure that the copies are notarized.
5. Apply for permission from the Ministry of Justice
Before the process of buying real estate in Croatia is completed, it is necessary to go through the last step: to request permission to buy real estate from the Ministry of Justice. During this process, the Ministry will check whether there is a reciprocity agreement with your home country and confirm that you can complete the purchase of the property. That is why it is important to first check whether your country has this agreement, because otherwise you will not be able to get permission from the Ministry of Justice and successfully complete this process.
Conclusion: Buying real estate in Croatia can be a really great idea, for several different reasons. Croatia has so many amazing things to offer, so living there can be a dream come true. Some of the things you need to do in order to buy a property as a foreigner are to inform yourself about the rules and laws that apply to buying real estate in Croatia as a foreigner, take the time to find a perfect property for yourself, go through the real estate records in detail, prepare the contract, and apply for permission from the Ministry of Justice. If you go through all these steps, you increase your chances of successfully going through the process of buying a property in Croatia and do it in the shortest possible time.