Real estate purchase guide for foreigners

EU citizens
Natural and legal persons from EU member states are entitled to ownership rights of real estate in the Republic of Croatia under the same conditions as Croatian citizens (however there are limitations, see bellow).

Non EU citizens
Foreign nationals from outside the EU can buy real estate according to the reciprocity principle. When buying a real estate it is necessary to seek approval from the Ministry of Justice of the Republic of Croatia. Foreign nationals without mutual consent/reciprocity can buy real estate on behalf of a company. The company needs to be founded with registered seat in the Republic of Croatia. In that case the real estate is purchased by a Croatian company in foreign ownership.

Limitations
Foreign nationals cannot purchase and register the following property on their behalf:

• Agricultural land
• Real estate located in protected areas

By hiring our agency the whole process of purchasing real estate in Croatia becomes safe and simple. Below you can find out about the basic stages of the purchase process, step-by-step:

1. Take care of your finances
Before you start browsing real estate, we recommend that you organize/define your finances, and if you are taking a loan, check with the bank, arrange the amount and basic loan terms. This step will give you insight into how much money for the purchase you have available which will ultimately affect the search.

2. Contact us and register your demand
The first step in finding the ideal real estate for you is to register your application with us by calling +385 (0)21 260 792 for real estate on the Adriatic coast or +385 (0)1 301 1383 for Zagreb or send us an e-mail to: info@biliskov.com, this way you can present your wishes and requirements directly to our local agents.
You can also view our current overall offer on www.biliskov.com and send a request for any real estate you find interesting. With over 2,000 real estate to choose from, you can be sure we have what you are looking for.

3. Finding the right real estate for you
Once we have a clear vision and understanding of the real estate you are looking for, we will offer you a list of real estate which meet your criteria. We will also regularly update the offer and inform you via newsletter or e-mail about new real estate, special offers, discount prices… You do not need to search on your own and waste time, we will find the ideal real estate even if it is not currently in our offer!

4. Organizing quality tours
We make an effort to save your time so we will take you to see only the real estate we believe to be the best for you. We will adjust our working hours to your needs, and it is not a problem to organize a tour after working hours or on weekends. Our offices in Zagreb, Split and Kaštela are open Monday to Friday 9:00-17:00, Saturdays 09:00-13:00, and our phone lines are available every day 8:00 – 20:00.
We can also provide transport to the selected real estate. During the tour we provide guidance and advice and immediately respond to any questions you might have.

5. Making an offer
Once you have found your ideal real estate and made an offer, we will inform the owner and negotiate the best possible price for you. Apart from the price, we negotiate all other conditions common in the purchase and sale process (utilities records, deadlines for moving out, furnishing, repairs, etc.).
Negotiations are not considered a legal obligation for either side until the agreements have been signed.

6. Accepting the offer
When the seller accepts the offer, we will organize a meeting between you as the buyer and the owner as the seller in order to define the entire list of details necessary to draft the agreement and successfully realize the transaction.

7. Hiring a law firm
After all the conditions and details have been defined and agreed upon, we will forward all information to the law firm which will check the documents in detail, such as ownership rights, certificate of ownership, etc. However, you needn’t worry, our experienced agents will guide you through the process and inform you on every change.

8. Preliminary agreement and cash deposit
Based on the agreed terms between the buyer and the seller, a lawyer will draft a preliminary contract which will be binding to the parties to sign the purchase and sale agreement upon the fulfilment of a specific condition and/or after a specified time period, with an obligatory cash deposit which usually amounts to 10% from the purchase price (known as 'down payment').

9. Real estate valuation and loans
After signing the preliminary agreement, the buyer (usually) goes to the bank to get the loan. The bank will make a valuation of your future real estate with the help of their own appraisers. After that the bank usually takes 30 – 45 days to process the loan and disburse the funds.

10. Concluding the agreement and solemnization
Once the bank has approved the loan, the lawyer will draft a purchase and sale agreement on the basis of the preliminary agreement. The signed agreement must be solemnized by a notary public. At this stage, the whole purchase and sale amount is paid to the seller.
The lawyer will draw up a proposal for registration of ownership and submit it to the land registry department of the municipal court, as well as tax report and all other necessary documents to the tax authorities. The real estate transfer tax in Croatia is 3 %.

11. Completing the deal
We will deliver the keys of your real estate after the money is received by the seller. Congratulations, you have bought the real estate! It is a time for happiness and our agent will make sure that the process is complete. He/she will deliver to you the certificate of ownership with your name on it and all utilities transferred to your name.

IMPORTANT FACTS:
Before the conclusion of the legal matter it is necessary to obtain a VAT number issued by the Tax Administration.
To register real estate in the land registry it is necessary to submit a copy of your passport certified by a notary public.

Additional costs associated with the purchase of real estate:
Real estate transfer tax is 3%.
Agency fee is 2% (+ VAT), which includes attorneys' fees.

POINTS OF INTEREST:
The proportion of foreign buyers in the total number of transactions in Croatia in recent years has been 14-16%. Foreigners own more than 50,000 real estate in Croatia.
The largest number of real estate was bought by citizens of Slovenia, then citizens of Germany, Austria, Italy, Hungary, United Kingdom, Sweden, Slovakia, Norway, France and so on.

CITIZENS OF RUSSIA:
Since a contract of reciprocity was signed between Croatia and Russia, Russian citizens can also buy real estate as private persons by obtaining the approval of the Ministry of Justice of the Republic of Croatia.
Biliškov Nekretnine and our legal team will take care of all the necessary documents so the transfer of ownership to the buyer becomes a smooth and simple process.

We have successfully obtained numerous certificates of ownership for Russian citizens, so we can guarantee for our work and quality.

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