Buying a property is an important step that requires careful preparation and consideration of various factors. Whether you are buying a property to live in or as an investment, it is essential to know not only the basic costs, but also the hidden expenses and legal aspects. In this article, we look at the key information you should keep in mind before entering into a purchase agreement.
Hidden costs to consider
When buying a property, it’s important not to just focus on the purchase price. There are several other factors that can significantly affect your total outlay:
- Renovation costs – Older homes often require extensive repairs, especially roof replacement, wiring and plumbing.
- Taxes and Fees – When you buy a property, you must expect to pay 3% transfer and conveyancing tax. This is in addition to notary and solicitor fees, which can be a further 1-3% of the property value.
- Utility Connections – If you are buying a property in a rural area, check that it has access to water, electricity and sewerage. Not everywhere in Croatia has water and sewerage.
Buying property in Croatia: what do foreigners need to know?
Croatia is a popular destination for foreign buyers, but there are certain legal requirements to consider:
- EU citizens – They have the same rights as locals and can buy property without restrictions.
- Non-EU citizens – Must apply to the Ministry of Justice for approval to purchase, which can cause administrative delays.
Key Steps When Buying Property in Croatia
- Conveyance of title – Ask for an extract from the Land Registry to ensure that the seller is the legitimate owner. We always prove this to our clients.
- Signing the Reservation Agreement (Pre-reservation) – Usually a 10% deposit is paid to secure and reserve the property. The law firm we work with always prepares the contracts bilingually, so that they are in Croatian and in our local language. Please remember that before any preparation of the Contract, it is necessary to be registered with the Tax Office in advance and to have an OIB number issued. You can find out what an OIB number is on our Blog.
- Legal Check – A local lawyer should check all legal aspects including zoning and existing debts. Our real estate agent verifies.
- Final Contract and Tax Payment – A 3% real estate transfer tax is due upon signing the final contract. This is levied by the Tax Office and can come up to 1 year after the purchase of the property.
- Registration of title – Complete the process by submitting the documentation to the Land Registry. We take care of this, including the payment of the Application for Registration.
Additional costs for buying a property in Croatia
In addition to the purchase price itself, the following costs must be taken into account:
- Real Estate Transfer Tax – 3% of the value of the property (does not apply to new buildings).
- Legal and notary fees – Usually between 1-3%.
- Real estate fees – Most real estate agencies charge 2 – 3% of the sale price.
Prices on our website already include real estate commission and notary fees.
Financing Options
Foreign buyers often face problems getting a mortgage in Croatia. Most buyers take advantage of:
- Personal savings or financing from their own country. We also recommend financing from your own country, your bank will know the best loan options for you.
How to avoid common risks?
- Unclear title – Check all documents and avoid properties with unclear legal status.
- Illegal structures – Some properties may have been built without permission, which can lead to costly penalties.
- Poor infrastructure conditions – If you are buying a country house, check the availability of basic services and connections.
Why choose our real estate agency?
Real estate portals in Croatia do not indicate the total and final price of the property. Real estate agencies in Slovakia and the Czech Republic are required by law to list property prices including commission. On our websites relaxproperties.sk and relaxproperties.cz the prices are including real estate commission and legal services. Our listed property prices are the same as if you were buying a property directly through a Croatian real estate agency, as we share the commission. Thus you get a comprehensive service in the local language.
We are a Czech-Slovak real estate agency. We verify all documents and deal with any circumstances that may arise. We often add clauses to contracts that are in favour of our clients. We will also advise the client not to proceed with the purchase of the property if we find the purchase risky.
Before the actual purchase, it is good to know:
- Choose a location – The closer to the sea, the higher the price of the property. We know the top attractive locations and can advise you.
- We work only with verified real estate agencies and the whole buying process is always set in favour of our client.
- We search for tailor-made properties and send offers according to your preferences.
Close
Buying a property is a big investment that requires careful planning. Working with professionals can save you a lot of hassle and ensure a smooth transaction, and it doesn’t cost you anything extra if you go through our real estate agency.
