Buy a Real Estate in Croatia
Buy a Real Estate in Croatia
If you are interested in buying a Real Estate in Croatia or developing a Real Estate Project in the Republic of Croatia, firstly you must decide whether that investment will be a direct investment of a natural person or a special investment company will be opened for that purpose.
In practice, this decision depends on the circumstance of the each particular case, but, mostly, the investors are opening a limited liability company for the project they are developing, i.e. investment they are making in Croatia.
After this decision, it is required to obtain personal identification number PIN (OIB in Republic of Croatia). PIN is a permanent identification mark of each person used by public authorities in official records in their work and data exchange. This PIN number will be required whether if you are buying a real state as a natural person or if you are planing to open a company.
After you have chosen the Real Estate, you should review the Real Estate from legal point of view, in order to determine that it is safe for purchase and whether it is possible to make the planned investment on this particular Real Estate.
The next step, after legal due diligence of the Real Estate, is to negotiate and enter into a written Preliminary Agreement with the seller, and then into a Real Estate Purchase Agreement. In addition to the mentioned agreement(s), there should always be a clausula intabulandi statement or clause, with which it is possible to registered ownership of the Real Estate at the Land Registry in the Republic of Croatia.
Finally, it is important to point out that EU citizens can obtain Real Estate in the construction zone under some conditions as Croatian nationals, and, after June 2023, EU citizens will be allowed to buy agricultural land, as well. Regarding third country nationals, depending on their nationality they could be able to buy Real Estate in Croatia as a natural persons or, in any case, at least open a company in Croatia that can acquire Real Estate.
Real Estate development
When the Real Estate is successfully purchased and ownership is transferred, the investor can, if he is interested, start the process of further development of the project, which depends on the land, location, circumstances of the case, etc.
In that case, the next step is the process of obtaining permits, design and construction begins.
In order to obtain building permits you will required a plenipotentiary for receiving writs in Croatia, an architect and a construction company. It is necessary to conclude appropriate agreements with the above and protect your investment.