- Can a foreign citizen, a physical person, own a property in Croatia? Yes, since February 2009 with the same rights as a Croatian citizen.
- Can a foreign legal corporation own a real estate in Croatia? Yes, just like a citizen.
- Can more than one person be registered in the deed title as the property owner? Yes.
- Can I rent the seaside property that I have bought? Yes, but renting is a subject to the legislation of the Republic of Croatia and the official renting is quite complicated.
- How much is the real estate transfer tax and who pays it? 3% of the property value and is paid by the buyer.
- Can I sell the purchased property? Is there any profit tax? The property can be sold without restriction. If you sell your property within 3 years of the contract signing there is a profit tax of 35% calculated from the difference between the purchase and the sale price. After the period of 3 years, the profit is not taxed in the case of a physical person. In the case of a corporation the above mentioned tax applies no matter how long the ownership.
- Is it possible to insure a real estate in Croatia? Yes, insurance rates are similar to those in Europe. We will help the client to arrange an appropriate real estate insurance.
- Is there an annual ownership tax? Yes, there is. If you have a permanent residence registered at this property you are freed from this tax. Just to draw you a picture, a house with a usable area of 100 m2 has an annual tax of 1000 kuna.
- Can I finance the purchased property with credit? Some banks in Croatia also provide loans to individuals from abroad such as Erste Bank. The processing of the necessary documentation for the loan is similar to ours, the interest rates and fees for the established loan are higher here. The property can also be financed by a loan from a foreign bank, but the guarantee here must be from abroad as well.
- How expensive is water, electricity and gas compared to other countries in Europe? Water has a double rate, the summer rate is similar to that in Europe, the winter rate falls by half. Many properties, especially on the islands, have rainwater detention tanks. The volume of the tank is enough for a normal consumption for a whole year. If necessary, there is a possibility of filling the reservoir with mobile tanks without any problems. Electricity is quite cheap, gas is not introduced at all in most places. Gas cylinders are widely used.