Real estate for foreigners in Croatia

Foreigners love buying real estate in Croatia. About 10 years ago, Croatia liberalized its market, allowing the citizens of European Union to buy real estate in the country without any limitations. With over 30 other countries Croatia applies the principal of reciprocity – meaning that if a Croatian citizen can buy real estate in a foreign country, the foreigner from that country can materialize the same right in Croatia.

Nearly 40.000 real estates are in possession of foreigners. However, this number is probably higher. Many foreigners who wanted to buy real estate in Croatia founded trading companies and made the purchases through them, therefore avoiding taxes.

The most sought-after real estate is obviously located along the beautiful shorelines of the Adriatic Sea. The most foreigners owning real estate in Croatia are Slovenians, Germans, Australians and Italians. In the last few years more and more Russians are deciding make Croatia their little piece of holiday heaven. And it’s not just the Russians, but Scandinavians too!

The price tag of apartments by the sea, the most desired real estate, can be purchased at a price range 100.000 – 120.000 euros. The price is depending on the location, luxury of the desired apartment, and the size of it. To put things in perspective, approximate price of a square meter goes around 2.300 – 3.000 euros. There is also a weird trend of demand for buying old stone masonry houses, which can reach the prices of over half million euros!

The most important thing to have in mind – before the sale is made final, you have to get a formal consent from the Ministry of Foreign Affairs. This isn’t as simple, since it can take anywhere from 2 to 6 months. There are few things to take care of before getting to this part however. The usual first step after you’ve acquired the consent, is signing the pre-contract agreement between the buyer and the seller. The buyer is required to pay a part of the real estate price in advance, usually 10%. After this, you apply for Ministry of Foreign Affairs consent. After the pre-contract is signed and you’ve gained MOFA’s consent, the lawyer should put together a binding contract which is then signed by the notary.

Real estate agents in Croatia claim that lately their most desired customers have been Russians. They are looking for real estate which is overlooking the beach, is also luxurious and expensive. Russians are pretty much Croatian real estate agent’s wet dream. In many cases they decide to buy land or property which is vacant and build their villas and mansions on it as it suits them. Purchasing the land and building the mansions which accommodate even the finest of tastes can cost up to 600.000 – 800.000 euros.

Over 40.000 people have fell in love with the natural beauties of Croatia, and decided to acquire some property here. Have in mind however, that buying real estate in Croatia may not be as simple as in some other countries, but with a good agent and lawyer, it should be smooth sailing.

Image Credit boatinternational.com

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