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Buying property in Croatia as Indian citizen

There are various limitations on the purchase of property in Croatia for Indian nationals. They need approval from the Ministry of Justice, are prohibited from buying agricultural land (unless they do so via a Croatian firm they control), and are subject to a 3% property acquisition tax.

Property in Croatia

Look up the real estate records

A crucial part of buying a property in Croatia is looking through the documents related to the property. By doing this, you may steer clear of tense negotiations and avoid taking on obligations that are not your responsibility. Public documents provide all of the following details:

  • Measurement in square meters.
  • What the property is used for.
  • Owner(s) names.
  • OIBs for the owner, and sometimes the owner’s registered addresses.
  • Any obligations or claims relating to the real estate.

Check the zoning for the property

The property’s zoning, either residential or agricultural, must next be determined. Because not everyone can buy an agricultural property, the zone type is crucial. Through 2023, it is illegal for anybody who is not a citizen of Croatia to buy agricultural land. However, Indian nationals are permitted to buy agricultural property provided they do so via a Croatian business they control. Even yet, it is still not as easy as it seems. There are several hurdles to clear. Contact a reputable real estate attorney who can help you through the procedure if you’re interested in buying farmland via a business. To find out how a property is designated, you must make a request to the Administrative Department for Construction and Physical Planning. You must ask for a certificate certifying that the property is residential. Six euros is about how much it costs.

Get the contract ready

The buyer, or more precisely, the buyer’s attorney of a property in Croatia, often drafts the sales contract. You may ensure the protection of your interests, possessions, and financial resources in this way. The contract will include the purchase conditions and any required deposits. The customary kapara deposit of 10% is made. The buyer forfeits the money and the property if they don’t complete their part. The buyer is entitled to twice as much back if the seller does not keep their share of the contract. A notary public notarizes contracts.

Obtain authorization to purchase from the ministry of justice

Indian nationals must first get approval from the Ministry of Justice to acquire property in Croatia before they can complete the transaction. The Ministry of Justice verifies current reciprocity agreements with your country of nationality as part of this procedure. You won’t be able to buy a home unless your nation and Croatia have a reciprocity agreement. You must submit a request to the Ministry of Justice to ask for authorization. Included in this demand should be:

  • The Administrative Department for Construction and Physical Planning’s original certification
  • Purchase agreement (certified copy or original).
  • Land registration certificate attesting that the seller is also the owner.
  • Proof of the buyer’s citizenship, such as a passport that has been notarized.
  • A copy of your Croatian identification card, if relevant.

If you do not have a registered address in Croatia, original power of attorney for a representative there who may receive mail on your behalf. The ministry must consider your request within 60 days and will then decide whether to grant it or not, but it may take longer. You cannot buy the property if your request is rejected. This treatment will set you back around 5 euros.

Pay the sum that is due

You may pay the last 90% of the purchase price after the ministry has given its clearance. If you have a permanent address in Croatia, you could be eligible for a mortgage. Normally, banks won’t handle your request for funding until they have received the ministry’s permission, if appropriate.

Declare the acquisition in the land registration

You must register the property acquisition with the land registration within 60 days after the last step. This operation will set you back around 33 euros. The cost rises five times if you file with the land registration after 60 days have elapsed. You must provide the following information when registering the transaction with the land registry:

  • Purchase agreement: certified copy or original.
  • Certification from the administrative division of physical planning and construction.
  • Decision on approval to buy from the Ministry of Justice.
  • Proof of the buyer’s citizenship, such as a passport that has been notarized.
  • Evidence of administrative fees paids

Point to Note

If you do not have a registered address in Croatia, original power of attorney for a representative there who may receive mail on your behalf. The land registry examines each of your purchase paperwork throughout this procedure and decides whether to accept or reject the land registration modification. Your paperwork must all be entirely exact. Denial may come from even the smallest error, such as entering the erroneous digit in an OIB. Once the land register shows that you are now the owner, you can ask for a copy of the certificate of ownership. As soon as you get the ownership certificate, you can legally call that house in Croatia your own.

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