Buyers Guide - Croatia
Why Buy in Croatia?
Direct Easyjet flights from London, Luton and Bristol to Rijeke started at the end of June 2006. In addition here are also direct flights all year round to Dubrovnik, Zagreb and Split. It is also possible to fly to the east coast of Italy and cross the Adriatic by Ferry.
Playwright George Bernard Shaw once said 'If you want to see heaven on earth come to Dubrovnik'. Croatia is comparable to the countryside of France, Italy or Spain, yet much of it is undiscovered which makes it an ideal location for investors.
Fees and taxes
- Transfer tax of 5% must be paid within 30 days of signing the final deeds.
- VAT on New-Build homes is at 22%. However, this is usually included in the selling price.
- Legal fees can vary depending on whether a Croatian or English lawyer is used (ranging between 1-2%)
- For agents fees allow between 2-3%, although it is usual for the seller to pay these.
- Buying though a Croatian Company is quicker as no governement permit is needed and it brings with it other tax benefits. Setting one up can cost upwards of £1000.
The Buying Process
There ar no buying restrictions in Croatia for British citizens, who can buy as individuals or through a company. If buying as an individual a permit is required from the Croatian Minstry for Foreign Affairs, this can however take somewhere between 6 to 12 months to come through.
When a property has been chosen either a preliminary purchase contract or reservation contract is signed. If possible a reservation contract should be requested as a purchase contract is legally binding even if you subsequently find something wrong with the property which means you would want to back out you would be unable to.
Once all the necessary check have been done a preliminary purchase contract is signed by both parties and a 10% deposit is paid.
Once the government permit has arrived the final contract can then be signed in front of a Notary. At this point the remaining balance must be paid and the new ownership is registered.
When buying 'off-plan' it is normal for payment to be split into three stages. Terms can vary depending on developers requests.
Health
Any EU citizen with a vlaid EHIC (European Health Insurance Card) is entitle to free emergency care. However the health care system still leaves a lot to be desired. Many medicines privately available are not available in state hospitals. Therefore it is recommended that private health care is taken out and travel insurance is an absolute must.
Property Costs
1 Bed Apartment - £85,000
2 Bed Apartment - £130,000
3 Bed Villa - £200,000
4 Bed Villa - £250,000
Useful Links
www.croatia.embassyhomepage.com
