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Real estate FAQ

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REAL ESTATE FAQ

1. Can a foreign citizen buy a property in Croatia?
2. Can a foreign citizen sell a property in Croatia?
3. I want to buy property immediately - how?
4. Which documentation has to be presented to obtain the statement of consent?
5. How long does the procedure usually last?
6. Does the agency provide legal support ?
7. How much down payment has to be paid upon conclusion of the contract?
8. Does the buyer need to verify his signature with the notary public?
9. Can the contract be verified abroad and where?
10. Can the purchase tax be paid from abroad in foreign currency?
11. Which documentation has to be submitted to Land register in order to register the property on buyers name?
12. When purchasing land what is the minimal parcel size for development?
13. What is a minimal development distance from the sea?
14. What is a planning permit and how can it be obtained?
15. Does the agency provide assistance with planning permits?
16. What is the approximate cost of communal taxes required for obtaining the planning permit?
17. Once obtained, how long is the planning permit valid?

REAL ESTATE FAQ

1. Can a foreign citizen buy a property in Croatia?
Yes, but after prior consent issued by the Croatian Ministry of Justice.
The statements of consent are issued to citizens of countries with which Croatia has signed a contract on reciprocity and in extraordinary cases, to citizens of other countries as well.
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2. Can a foreign citizen sell a property in Croatia?
Yes, a foreign citizen as well as the corporations owned by foreign citizen, can freely sell real estates in Croatia .
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3. I want to buy property immediately - how?
Foreign citizens can establish a corporation in Croatia, which upon completion of the incorporation procedure can immediately purchase the property.
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4. Which documentation has to be presented to obtain the statement of consent?

• Purchase agreement in the original or a duly legalized copy
• Seller’s proof of title i.e. land registry certificate, in the original or a duly legalized copy, not older than six months
• Original certificate (not older than six months) issued by the authorities of the local administration responsible for urban planning (county departments), confirming that the property is within the construction zone envisaged by the zoning plan
• Proof of citizenship for the Buyer (certified copy of a passport)
• Proof of citizenship for the Seller (a copy of his ID or passport will do)
• Power of Attorney, in the original or a duly certified copy
• Photo copies of all the enclosed documents

In addition to these documents, it is also necessary to enclose the proof of payment for the administrative fee:

• HRK 50.00 for the application
• HRK 100.00 for deciding on property acquisition
• HRK 20.00 for any subsequent supplement to the application (in case of incomplete application)

Note: Administrative fees up to HRK 100.00 are paid in the form of appropriate stamp duty, while the amounts exceeding HRK 100.00 must be paid by means of a general payment order to the account of the National Budget of the Republic of Croatia.
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5. How long does the procedure usually last?
It may take over 6 months for completion of the procedure, but you can complete the purchase meanwhile.
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6. Does the agency provide legal support ?
Yes, we can arrange a full scale legal support with proffesional English speaking lawyers and independent solicitors.
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7. How much down payment has to be paid upon conclusion of the contract?
Down payment is 10% of the sales price if not agreed differently between the contractual parties.
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8. Does the buyer need to verify his signature with the notary public?
No, the buyer is not required to verify his signature, just the seller.
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9. Can the contract be verified abroad and where?
Yes, in such a case it is the best to have it verified in the Croatian embassy or consulate. If you verify such a contract before a notary public, then this verification has to be translated into Croatian by a certified interpreter.
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10. Can the purchase tax be paid from abroad in foreign currency?
The tax is to be paid by bank or post office money transfer. The amount is converted into HRK at the middle exchange rate by the National bank of Croatia at the day of payment. We provide our clients with full support concerning all kind of payments towards individuals and government agencies.
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11. Which documentation has to be submitted to Land register in order to register the property on buyers name?

• request for registration of ownership in the land register
• a purchase contract signed and verified before notary public or abroad in Croatian embassy/consulate
• a Statement of Consent from the Croatian Ministry of foreign affairs
• a verified copy of the identification document or Power of attorney if the buyer is legally represented
• a proof of payment of the administrative fee -
  HRK 250,00
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12. When purchasing land what is the minimal parcel size for development?
Minimal development parcel varies from location to location and usually equals 400-600 m2.
On some locations where the development is restricted, the min. development parcel size could equal 1.000 m2 or even more.
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13. What is a minimal development distance from the sea?
A minimal distance from the sea is 70 meters measured from the point of the highest tide.
A new set of regulations concerning the development in the protected area of 1000 meters from the sea as well as on the islands has been announced.
A potential investor must pay attention to this when planning a construction by the sea and consult the professionals before purchasing land.
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14. What is a planning permit and how can it be obtained?
The planning permit is a document issued by the county planning department, which enables the applicant to legally build objects in the particular area. It is based on consent obtained by several municipal and county agencies as well as the providers of the communal infrastructure: electrical power, water supply, sewage ... The county authority will issue planning permit for particular project, after all the documentation has been submitted along with the proof of the communal taxes payment.
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15. Does the agency provide assistance with planning permits?
Yes, we arrange a proffesional assiatnce to our clients and cover all related paperwork.
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16. What is the approximate cost of communal taxes required for obtaining the planning permit?
It varies according to local municipal regulations. 10-20 EUR per square meter for the average family house in the Dubrovnik City area.
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17. Once obtained, how long is the planning permit valid for?
The planning permit is valid for 2 (two) years. The investor is required to start construction within this period. After that s/he can apply for the extension of the planning permit.
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Links to relevant sites:

Croatian Ministry of Justice (Croatian only)
Croatian Government