Can a foreigner purchase property in Croatia?
Foreigners are allowed to purchase property in Croatia. If you are an EU citizen then you have the same rights to buy real estate as a Croatian citizen. People from third-country nations, (non-EU) can purchase land if their country of citizenship has a reciprocity agreement with Croatia. This process can take 1-6 months to be approved.
Create a Croatian company to purchase real estate
An alternative and quicker solution would is to establish a Croatian company and use it to purchase property. A Croatian firm has the same legal rights as a Croatian citizen. A person of any nationality can establish a private company in Croatia. The company can purchase the property and going forward it will be the holder of ownership. The foreign citizen(s) would be the owner(s) of a share of the company. The most simple and common is a limited liability or J.O.O. company.
Preliminary points to consider when creating a Croatian company J.O.O.
- Decide on a name for the company. Use any part of your name, words in Croatian or any EU language so long as it can be justified to the notary and register with HITRO.HR
- Pick an accountant and address. The firm’s address can be that of the accountant.
- Consider the activities of the company. Include things related to real estate and tourism.
- Capital investment of 20,000 kuna. This can be used for activities or services related to the firm once it has been established.
Steps to start a Croatian Company J.O.O.
- Obtain a personal OIB, identification number. Needed for the notary and to establish a bank account. Company will have its own OIB once established.
- Sign the official act document at notary to establish the company, requires presence of founders and directors of the firm or power of attorney.
- Deposit 20,000 HRK, the minimum initial capital, in the bank the firm will use (most common banks are Zagrebacka, PBZ and Ralffeisen) or FINA (financial institution).
Wait 2-7 days for the court to approve the establishment of the company.
Once approved and you have the final documents from FINA
- Create a stamp for the company. Include company name, company’s OIB, full address and contact info for the firm.
- Open company’s bank account most likely where you have made the capital deposit.
- Sign contract with accountant. An accountant will cost approximately 1000-1500 Euros per a year.
- Register company in VAT system and VAT-EU for European transactions. The accountant should handle this detail so that the company can be found in the VIES system. This will allow your company to receive a refund for purchases that include 25% VAT (45-60 days).
Proceed with purchasing the property through the company
Most likely you have picked out a property and may have previously signed a preliminary agreement establishing costs and procedure of payment.
Once the company is finalized it can now purchase the property. The seller and company representative can sign the sales contract at the office of the notary. Payment for the property is made from the company’s account in kunas. Once the funds have arrived in the seller’s account the notary must issue a deposited document. This will be submitted to the economic court to be accounted for in the State Register. Once these steps are completed the buyer (company) will receive the title.
Candy Brick has vast knowledge and experience on buying property through a Croatian company. We can assist you in establishing a J.O.O. and finding reliable services such as an accountant, notary and bank.
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