Middelland has helped 100s of  clients who invested in property in Croatia over the last 17 years. Working as a niche office in a (still) niche market, we regularly get the same questions regarding investing in property in Croatia. Below we listed the most frequently asked questions (latest update: December 2022).

 

Which region in Croatia is the best for buying property?

Taken into consideration how areas develop, where urban expansion is happening, where tourism is attracting more buyers, where golf resorts are planned, etc., we recommend to check out this real estate map of croatia.

Can Dutch or Belgian citizens purchase property in Croatia?

Yes. Dutch or Belgian natural persons and companies may 100% own land and buildings in Croatia, as long as these are not agricultural land, forest land or national monuments.

Can Dutch or Belgian citizens purchase property through a local company?

Yes. A company (like a BV or BVBA) is called a ‘d.o.o.’ in Croatia. A Dutch or Belgian natural person or Dutch or Belgian company can establish and  become 100% owner of a d.o.o. in Croatia. Any d.o.o., or any Dutch/Belgian natural person can become 100% owner of property in Croatia.

Can a Dutch / Belgian own a company in Croatia?

Yes, a Dutch or Belgian natural person or Dutch or Belgian company can be 100% shareholder and sole director. It is not necessary to pay salary to the director.

Can a Dutch / Belgian company buy land in Croatia?

Yes. Foreign natural persons or companies may own land and buildings in Croatia, as long as they are not agricultural land, forest land or national monuments.

Is Croatia a safe country?

Yes. On the Adriatic coast you will not find shutters or fences around properties, or ‘compounds’ like in southern France. Bikes remain unlocked. Why? One of the reasons is that because of the socialist past, in which everyone had a job and the income differences were small, there is relatively little crime.

What is the average price for real estate in Croatia?

In Dubrovnik the average asking price is €4,200/m2, in Split €2,000/m2 and in Rovinj €2,600/m2. But prices at the coast differ strongly. In Dalmatia, the strip between mountains and coast is narrow, and you want to be on the seaside of it. The best position is seafront (first line to the sea).

Is it a good time to buy property in Croatia?

Croatia the only country that still offers lots of affordable seafront property. Private beaches or your terrace or jetty at the sea is not yet a millionaire’s dream in Croatia. But it will become soon a rare- and coveted item. Due to the EU and EURO-zone entry and the continuing decline of outside-of-Europe ‘second-home countries’ such as Turkey, prices in Croatia are rising sharply.

What are real estate costs in Croatia?

In our Real Estate Guide you will find a clear overview of all costs.

Can I get a mortgage in Croatia as a foreigner?

See here for more information about financing and a mortgage in Croatia

What type of property are people looking for in Croatia?

Villas located directly on the sea, preferably with a private jetty. Large apartments in Dalmatia 90m² and larger, with large balcony (of which there is little offer). Resorts full service (still little developed / Croatia is not like Spain). Villas with swimming pools in the interior of Istria at hilltop villages / because of views / wine regions (offers an alternative to Tuscany). Newly built detached villas for medium low prices in Dalmatia (are not offered at all). Self (let) building is therefore more interesting than ever.

 

What is the hourly wage of a construction worker?

6 euros / hour

 

How does Land Registry work in Croatia?

Properties are registered in the Cadastre and the Land Book Registry. If you’re interested in a property, it’s important to consult both registries. Often you will find different information in both, indicating that deeds are not updated yet. In such case, one must first secure that the seller updates both registries (by submitting inheritance papers or ownership proofs etc.) before you can sign the final purchase agreement.

The land register has been renewed (with EU funds) and digitized, making it the most modern cadastral system in Europe. The property and encumbrances can be retrieved online. for most areas; hinterland of Dalmatia has not yet been worked out. Istria is best organized because the land book is built here during Austria’s Hungarian period of domination and has since been well kept.

above: an example of a ‘prostorni plan’ in Ciovo. Yellow and orange indicate building zone.

 

How does zoning work in Croatia?

Municipality after municipality comes up with ‘zoning plans’. These are called Prostorni Plan. Always ask if the property, that you’re interestin in, is in the building zone. If it’s not, then it’s usually very unsure that it will be.

 

Is it possible to change a zoning plan in Croatia?

Depending on the preconditions, in some regions, if there is sufficient land per plot, it may be built outside the construction zone. If larger plots are purchased at the same time, one can opt for a zoning plan change. How this works is related to the decentralized right of municipalities to issue new construction zones. Sometimes the municipality does this by means of a tender, but usually a developer can take the initiative and bear the costs for it.

 

How much does it cost to build a house in Croatia?

Good, high-quality construction, high level of finishing, suitable for sale in the second-houses market: Approx: € 1,000 – 1,500 / m². This is not particularly cheap. In Istria in particular, the costs are higher, because construction companies have received a lot of work from neighboring countries since joining the EU.

 

How much does it cost to build a road in Croatia?

Asphalt road: 4 m wide, 70 euro per linear meter

 

Is a building permit easy to obtain in Croatia?

No. A lot of paperwork and the inspectors / assessors often have to be personally visited.

What is the cost of building land in Croatia?

Residential building land on the countryside depends on location and location and view: from € 35 to € 120 m². Good locations (near beautiful village, view, etc.) can be found from € 65, -. Land directly on the sea is the most expensive: 300, – / 400, – euro / m2. Land where a zoning plan already exists is more expensive than new building land. (current prices for potential locations for development of tourist real estate / second homes, not the locations in the hinterland or uninteresting places.) Land prices on the coast with sea view depend on location and distance to the sea: between € 90 and € 500 / m² The price for land far from the sea but with full sea view is approx. € 100, – / m2 The price for plots directly on the waterline is the most popular and varies strongly.Rain prices for agricultural land is between € 2 and € 15 m². (Update: 15 July 2008).

 

How much is real estate tax in Croatia?

Usually you pay 3% real estate transfer tax when you buy a property. However, if the house on the land is not older than 2 years, you only pay this for the land-part. The house is subject to VAT. Or: if the seller is VAT active, you are also subject to VAT tax. See here for updated regulations.

 

Disclaimer: This questionnaire has been compiled on the basis of advice and statements from professionals in Croatia and on the basis of good faith. This Q & A is purely informative and aims to provide insight into the real estate market of Croatia and rules / laws at the time of writing. No rights can be derived from this text or from the items mentioned herein. For tax matters, you should consult a tax specialist. We emphasize that Croatia is a country in transition and that laws are subject to change. Middelland does not take responsibility for the accuracy of the text here. Any liability resulting from this text, or from printing or typographical errors or obvious mistakes will be rejected.

 

Why should I hire a buying agent if I want to buy a house on the Adriatic coast?

The property market in Croatia and Montenegro is still under development. This also applies to the brokerage; a large overview site such as Funda does not exist here. In order to find the best offer, a buyer therefore benefits enormously from an objective purchase broker who knows how the hares walk and has access to the best offer. Also if you have found a villa or apartment through another website, Middelland can be of service to you, without it costing you more. See here for more information.

Why would not I just knock at a local real estate agency?

Local brokers aim to sell their own offer. Middelland has agreements with the most important, carefully selected local professionals. This gives you access to the widest range and gives you 100% independent advice. We only have the buyer’s interest in mind.