Buying real estate in Croatia on behalf of a company
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  • Buying real estate in Croatia on behalf of a company

Buying real estate in Croatia on behalf of a company

A firm established by foreign citizen will have same rights as a firm established by the Croats. Accordingly, such firm can buy and own real estate, including residential. If you want to get titles straightaway your choice is purchase by private company.

For registering a company in Croatia, you need a passport and a presence in the country for about a 2 week. This time will be needed to compile and sign the constituent documents at the office of a notary, obtain a decision of registration in the court and open a current account in the bank. The first and last action requires the personal presence in Croatia of the founders and the future director of the firm.

The procedure of purchasing real estate

Preliminary agreement

After you have found a suitable variant for yourself, the seller makes a preliminary contract of sale. It fixes specification of real estate, the cost and procedure of payment, the terms of signing the final contract, penalty sanctions in case of non-signing the main contract and etc.

Registering company

Registering company is usually in the form of d.o.o. or J.d.o.o. - its simplified form with a minimum authorized capital of 10 Croatian kuna. A "classical" firm requires the introduction of a constituent capital of 20,000 HRK, which is about 2,800 euros.

Documents are signed at the office of the notary in the presence of the founders, the future director of the firm and the judicial interpreter. The decision of registering is usually made within 3-4 working days, then you need to open a current account and register in the tax authorities. After that, you can start signing a sales contract.

Signing of sale contract and payment

The contract of sale and purchase, as well as the constituent documents of the firm, shall be signed at the office of the notary.

Payment of the contract price is carried out from the firm's account in Croatian kuna, although traditionally the value of real estate in the contract is fixed in euros. Recalculation is made by the rate of the Croatian National Bank also fixed in the contract. After the funds will arrive at the seller's account, the notary must issue a deposited document. Then it is documents may apply to the economic court for registration of title in the State Register (Land registers). After positive decision, the buyer get title .

Payment of property tax

Any transition of title in Croatia is taxed on the turnover of real estate. From this rule, only objects that include VAT are excluded. The rate of the tax on the turnover of real estate is from 1 January 2017 4%.

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