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FAQ
Here we
give you the answers to FAQ concerning purchase of real estates in
the Republic of Croatia. In Croatia we have plenty of legal acts and
laws concerning traffic of real estates and in connection with real
estates in general. It is not our intention to bore you with the
local legislation, but to give short and simple answers on issues
that might be of interest to you. In case there is questions that
are not contained here, feel free to contact our agency
directly.
- " WHICH DOCUMENTATION IS TO BE PRESENTED BY THE
CUSTOMER WHEN PURCHASING REAL ESTATES IN
CROATIA!
Proof of Croatian citizenship, either in form of citizenship
certificate, passport or personal identification card. A copy of any
of the above is accepted in case the original can be shown
simultaneously.
- " ARE FOREIGN CITIZENS ENTITLED TO PURCHASE REAL
ESTATES IN CROATIA ?
Yes Foreign citizens
that establish, or already have an established company in Croatia,
can purchase real estates on behalf of this company., Or after prior
consent issued by the Ministry of legal affairs and the Ministry of
foreign affairs These statements on consent are issued to citizens
of those countries Croatia signed a contract on reciprocity with and
in extraordinary cases, to citizens of other countries as well. The
procedure of obtaining the statement on consent is as follows: When
a foreign citizen decides to purchase real estate in Croatia first a
sales contract is to be signed with the selling party. At this phase
the contract does not have to be verified before a public notary
jet. Together with respective documentation, this contract is sent
to the Ministry of foreign affairs in Zagreb. When the Ministry
issues to the customer its statement on consent, the foreign citizen
is entitled to register the real estate onto his name at the
Municipal court -Cadastry department and pays the real estate
purchase tax.
- " ARE FOREIGN CITIZENS ENTITLED TO SELL REAL ESTATES
IN CROATIA ?
Foreign natural or
legal persons can without any problems sell real estates in Croatia.
- " WHAT IS THE REAL ESTATE PURCHASE TAX IN CROATIA ?
The Republic of
Croatia has a unified tax rate of 5% for all types of real estate
and respective transactions. The tax is defined based on the price
of the real estate in the sales contract and the value estimate by
the authorized tax authority in charge for the area in which the
real estate is located. According to the Law, tax on purchase of
real estate is paid by the customer or the seller on behalf of the
customer, if the parties agree upon this.
- " WHAT IS THE TAX IN CASE OF EXCHANGE OF REAL ESTATE ?
The same, 5%, but here
each of the real estate owners pays 5% of the value of his real
estate as tax.
- " WHEN MUST THE REAL ESTATE PURCHASE TAX BE PAID ?
After conclusion of
the sales contract the customer is obliged to register the purchase
at the authorized tax authority within 30 days from the day of
conclusion of the contract. Public notaries do also submit one copy
of the sales contract to the tax authorities. The customer is
obliged to pay respective real estate purchase tax within 15 days
from the day of reception of the decision received from the tax
authorities on the exact tax amount. If this tax is not paid within
this term, interest on arrears are charged for every day of delayed
payment.
- " DOES THE SELLER HAVE TO PAY TAXES WHEN SELLING HIS
REAL ESTATE ?
No. Only in case the real estate is sold prior to the expiration
of three years after it has been purchased and if sold at higher
price than originally purchased. In such a case the seller has to
pay a 35% income tax on the difference in value of the real estate
(purchase and sales price) increased for local taxes, different in
every municipality.
- " MUST THE CUSTOMER (ALONG WITH THE SELLER) HAVE TO VERIFY HIS
SIGNATURE ON THE SALES CONTRACT ?
He may, but must not.
- " HOW MUCH DOWN PAYMENT SHOULD BE PAID AT THE CONCLUSION OF A SALES
PRE-CONTRACT OR CONTRACT ?
Usually the down-payment is 10% of the sales price or different
if agreed so between the contractual parties.
- " IS IT POSSIBLE TO CONCLUDE AND VERIFY A SALES CONTRACT ABROAD
?
Yes, In such a case it is the best to have it verified in a
Croatian embassy or consulate. If you verify such a contract before
a public notary, then this verification has to be translated into
Croatian by an appointed courts interpreter
- " IS IT POSSIBLE TO PAY THE REAL ESTATE PURCHASE TAX IN FOREIGN
CURRENCY ?
The tax is to be paid by bank or post office money transfer. The
amount is converted into Kuna at the middle exchange rate by the
National bank of Croatia at the day of
payment.
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