What services does our agency provide?

Remington Real Estate offers brokerage services for the sale and rental of properties across Croatia, with a focus on exclusive villas, houses, apartments, and land in prime locations. Our agency provides complete support throughout the entire process – from professional valuation and property presentation, creation of marketing materials and international promotion, to negotiation management, legal assistance, and coordination of property handover.

What does the property buying process look like?

Buying or selling a house or apartment can seem like a complex process – that’s why real estate agencies are here: to guide you through every step. Before the transaction itself, thorough preparation is essential: reviewing the market offer, selecting properties that meet your preferences and criteria, and finally choosing the right one. This is followed by the legal stage, which includes signing a Preliminary Agreement and a Purchase Contract. For more detailed information and to better prepare, read our blog article Croatia Real Estate – Your Guide to Buying Property and learn how to buy safely and stress-free.

Do I need a lawyer when buying property in Croatia?

Hiring a lawyer is not legally required, but it is generally recommended for additional legal security. However, it is not always necessary if the buyer works with an established real estate agency that, through its legal department or external legal advisors, provides due diligence services - verifying ownership, encumbrances, and compliance with spatial planning. Such agencies often prepare or review the purchase agreement on behalf of the client, reducing the need for separate legal representation. This way, the buyer receives integrated legal support as part of the overall mediation process, greatly simplifying the transaction.

What does property due diligence mean?

Due diligence is a comprehensive legal check of ownership, encumbrances, construction legality, zoning compliance, condominium registration, possession, and contractual relations, including tax and operational risks. It is performed before paying a deposit or under conditional terms to ensure minimal transaction risk.

Can the agency manage the entire process remotely?

Yes. Most agencies offer full support to buyers who are not physically present. The buyer grants power of attorney to a lawyer or representative who can complete all steps - from due diligence and contract signing to tax filing and land registry registration.

Which professionals are typically involved in a property purchase?

The process usually involves a real estate agent, lawyer, and notary public. Depending on the property, a tax advisor, architect, or civil engineer may also be involved. For luxury or investment properties, urban planners, interior designers, and property management experts often take part as well.

What are the advantages of working with a specialized real estate agency?

Specialized agencies offer much more than access to attractive listings. They provide personalized service, strategic advice, and professional coordination throughout the transaction. In addition to market analysis and legal and tax structuring, they assist with utility transfers and give clients access to a network of trusted legal, tax, and design professionals who understand international buyers and uphold high professional standards.

How is the market value of real estate in Croatia assessed?

The market value of residential properties is most commonly determined through the comparative valuation method conducted by an agent or appraiser. The analysis considers various characteristics of recently sold comparable properties. For official purposes such as taxation, inheritance, or mortgage approval, a valuation by a certified court expert or licensed appraiser is required. For sales purposes, it is often advisable to obtain an assessment from a specialized real estate agency with in-depth knowledge of the local market and actual transaction prices.

Which factors most influence property prices in Croatia?

Real estate prices in Croatia strongly depend on location, purpose, and property quality. On the Adriatic coast, key factors include proximity and sea view, the attractiveness of the destination, architecture, design, and level of equipment, while the immediate surroundings further influence value. For holiday homes, prestige and lifestyle are key, while for residential properties, proximity to schools, transport, and infrastructure are more important. In continental cities, price is mainly determined by the reputation of the neighborhood, connectivity, and construction quality.

Are property prices in Croatia rising?

Yes, real estate prices in Croatia have been steadily increasing over the past decade, driven by factors such as joining the Eurozone and Schengen, inflation, foreign demand, and limited new construction supply.

How realistic are official valuations compared to market prices?

Official valuations by licensed appraisers are reliable for regulatory purposes, but often cannot fully reflect the actual market value of a specific property at a given time. Valuations by specialized real estate agencies tend to provide a more accurate market-based assessment.

Is there room for price negotiation?

Negotiations are possible but largely depend on the property type and market situation. For luxury and rare properties in prestigious destinations, the margin for price reduction is usually minimal. Conversely, for standard apartments or houses - especially those that have been on the market for longer or have legal or technical deficiencies - buyers may expect more flexibility. The key factor is the initial price setting: if it already reflects fair market value, negotiation room will be limited.

Can foreign citizens build property in Croatia?

Yes, foreign citizens can build property in Croatia if they legally own land designated as building land within the spatial plan. Citizens of the European Union and the European Economic Area can purchase such land without restrictions, while non-EU citizens may do so only if their home country has a reciprocity agreement with Croatia. Once the land becomes the buyer’s property, construction is carried out under the same conditions as for Croatian citizens, requiring a building permit and other prescribed documentation.

Can foreigners buy land for development in Croatia?

Yes, but the conditions depend on the buyer’s nationality. EU and EEA citizens can freely purchase building and agricultural land under the same conditions as Croatian citizens. Non-EU citizens may buy building land only with the approval of the Ministry of Justice and if a reciprocity agreement exists, while restrictions remain for agricultural land — it is usually acquired through the establishment of a Croatian limited liability company (d.o.o.), which must meet all legal requirements to operate agricultural activities.

What permits are required to build a house or villa?

To build a house or villa, a building permit must be obtained from the competent administrative authority. The land must be designated as building land in the spatial plan and must be accessible and equipped with utilities, while the main project must be prepared by a licensed architect. Depending on the land’s location, additional approvals may be required, such as infrastructure or conservation permits for protected zones.

Can I build through a Croatian company (d.o.o.) as a foreign investor?

Yes, foreign investors often choose to build through a limited liability company, as this allows them to acquire land without restrictions and provides tax advantages, such as recognition of construction expenses or optimization of income reporting if the property is used for rental or commercial purposes.

Are there restrictions related to spatial planning and zoning?

Yes, spatial plans are under the authority of local municipalities and define land use, maximum allowed building size, height, density, and infrastructure requirements. Before purchasing land, it is advisable to consult a licensed architect or urban planner to verify compliance with local regulations.

How is the right to build on someone else’s land regulated?

The right to build (pravo građenja) is a property right allowing one person (the holder of the building right) to construct and own a building on another’s land, while the land remains the property of the original owner. This right is established through a contract between the landowner and the holder, registered in the land registry. It is usually granted for a fixed period (e.g. 30 or 50 years) with compensation to the landowner and can be transferred or encumbered similarly to ownership. After expiry, ownership of the building passes to the landowner unless otherwise agreed in the contract.

Do I need insurance for a luxury property in Croatia?

Yes, comprehensive insurance for a luxury property in Croatia is strongly recommended. Standard policies often do not cover actual risks, so the property should be insured for its full reconstruction value, with additional coverage for contents, liability, and natural disasters. Special attention should be paid to coastal properties due to risks such as hail, earthquakes, and rising sea levels.

What types of insurance are essential for luxury property owners?

Key types of insurance include property damage insurance (fire, water, vandalism), contents insurance (furniture, artwork, electronics), liability insurance (especially for rental properties), and coverage for natural disasters (floods, earthquakes). Additional protection may include rental income insurance and legal protection.

Is liability insurance mandatory for rental properties?

It is not legally required but highly recommended, as it protects the owner from claims in case of guest injury or property damage during their stay. This is especially important for short-term rentals.

Do I need a permit for property renovation in Croatia?

Yes, for most structural changes. Works involving load-bearing walls, roofs, facades, or change of use (e.g. converting a garage into living space) require a building permit. Even minor works often require a project prepared by a licensed architect or engineer.

What kind of works do not require a permit?

Minor works such as painting walls, replacing flooring, or installing household appliances usually do not require a permit. However, all works must comply with building regulations and safety standards.

Are there special rules for renovating protected properties?

Yes. If the property is located in a cultural or historical protection zone, approval from the Conservation Department is required. Even small works, such as window replacement or facade cleaning, may be subject to specific conditions or restrictions.

Who can assist with the renovation process in Croatia?

To design, obtain permits, and ensure compliance with regulations, a licensed architect or civil engineer must be engaged. If the renovation involves legal aspects, consulting a legal advisor is also recommended.

Is renting luxury properties in Croatia profitable?

Yes, luxury coastal properties – for example in Opatija, Rovinj, Dubrovnik, Hvar, and Split – can generate significant seasonal income. High demand and limited supply of luxury accommodation result in strong occupancy rates and high rental prices. When professionally managed, such properties often yield excellent returns, especially during the summer season.

What are the tax benefits for private landlords?

Croatia offers a favourable tax system for private landlords: instead of an annual property tax, there is a property levy ranging from €0.50 to €8 per m²; income tax is paid as a flat annual amount per bed (typically €20–€200 per bed), and VAT (13%) applies only if annual income exceeds €60,000.

Can I rent out property through a Croatian company?

Yes. A Croatian limited liability company (d.o.o.) can legally operate tourist rentals, which is often the best option for buyers outside the EU. Corporate income tax is 10% for profits up to €1,000,000, dividend tax is 12%, and maintenance, depreciation, and management costs are tax-deductible, often reducing the taxable base.

Is a permit required for tourist rental?

Yes. The owner must register as a private landlord and obtain a Decision on Categorization from the local tourist board. The property must be legally constructed, registered in the land registry, and comply with all hygiene and safety regulations.

Who can register a private tourist rental?

Croatian and EU/EEA citizens can register personally. Non-EU/EEA citizens must rent through a Croatian company.

Are there local restrictions on tourist rentals?

Yes. Local authorities may impose spatial or quantitative restrictions, particularly in popular or protected areas. Before starting rentals, one should always check local regulations.

What should I know about the Tourism Act if I want to rent out my property?

The Tourism Act defines the conditions under which individuals and companies may provide accommodation to tourists. A property owner wishing to rent must obtain a Permit for Providing Hospitality Services in Private Accommodation (for individuals) or register the activity through a company or trade license. The property must meet minimum technical and safety standards (e.g. room size, sanitary facilities, basic equipment), be legalized, and registered in the land registry. In addition, landlords are required to register guests in the eVisitor system, pay tourist tax and income tax (flat-rate or based on income, depending on the model). Higher-category properties (e.g. luxury villas) undergo additional verification to ensure compliance with the prescribed standards.

Can foreigners obtain a mortgage in Croatia?

Yes, foreign citizens – especially those from the EU/EEA – can obtain mortgage loans from Croatian banks. Loans for foreign buyers typically require a down payment of 30% to 50% of the property value, with repayment periods of up to 20 years. Loan approval mainly depends on the buyer’s income and creditworthiness. Non-EU citizens face stricter requirements and often need to provide additional guarantees.

Are loans available for properties under construction or “off-plan” projects?

Yes, banks also finance properties under construction, provided the project is legally compliant and has all necessary permits. The loan is usually disbursed in stages, for example after the occupancy permit is issued or certain construction phases are completed.

Can I buy property through a Croatian company and obtain a loan?

Yes. Investors often establish a limited liability company (d.o.o.) to facilitate access to business loans. This structure allows for tax advantages and recognition of certain expenses, especially if the property is used for rental or commercial purposes.

Do I need to open a bank account in Croatia to buy property?

It is not legally required but highly recommended. A local account simplifies payment of taxes, utilities, and maintenance costs. Most banks, however, will not open an account until the buyer is officially registered as the owner in the land registry.

Can non-residents open a bank account in Croatia before ownership registration?

In most cases, no. Banks typically require proof of ownership, such as a land registry extract, before opening an account for non-residents. This means the account can usually be opened only after the purchase process is completed.

What is the real estate transfer tax in Croatia?

The real estate transfer tax in Croatia is 3% of the market value of the property. This tax is usually paid by the buyer unless otherwise agreed in the contract.

How to calculate real estate transfer tax?

The property transfer tax in Croatia amounts to 3%. It is calculated by multiplying the taxable base by the applicable tax rate. For example, if you purchase an apartment for €300,000, the property transfer tax you will pay amounts to €9,000 (3% of €300,000).

When is VAT applied instead of the transfer tax?

If the seller is not subject to VAT or the property is older than two years, a 3% real estate transfer tax applies. VAT of 25% applies only to the first sale of new properties made by a legal entity registered for VAT, such as a developer or investor.

Who reports the real estate transfer tax?

Usually, the notary public or the land registry department automatically forwards the notarized contract to the Tax Administration. In some cases, the buyer must submit the tax declaration personally.

What additional costs should be considered when buying a property?

Buyers should budget an additional 5 - 8% of the purchase price to cover the 3% transfer tax, agency commission (3% + VAT), legal fees (0.5 - 1%), notary and registration fees, translation or court interpreter services (if the buyer does not speak Croatian), and possible escrow or deposit account costs.

Is there a tax on selling property?

Yes, if you sell the property within two years of purchase and make a profit, a 24% capital gains tax applies, plus any applicable local surtax.

How is long-term rental income taxed?

Income from long-term rental is taxed at 10% on 70% of the gross income after a 30% standard deduction. Local surtax is added on top. For example, on an income of €10,000 with an 18% surtax, the total tax is approximately €826.

Is there an inheritance tax on real estate in Croatia?

No, direct family members (spouses, children, parents) are exempt from inheritance tax. Other heirs pay 4%. Inheritance is not subject to the 3% transfer tax but must go through the probate process.

What is the difference in taxation between new and used properties?

A new property (up to two years old, first sale by a VAT-registered legal entity) is subject to 25% VAT, usually included in the price, without an additional 3% transfer tax. A used property (sold by a private individual) is subject to a 3% transfer tax.

Are there special rules for inheritance of real estate by foreign citizens?

Yes, foreign citizens may inherit real estate in Croatia under the same conditions as Croatian citizens. The inheritance must go through Croatian probate proceedings. Close family members are exempt from tax, while others pay 4%.

How long does the process of buying property in Croatia take?

The process of buying property in Croatia usually takes between 4 and 8 weeks. It includes legal due diligence, signing the contract, notarization, and registration in the land registry. The duration may vary depending on the property’s legal status and the efficiency of the authorities involved.

What are the steps in the property purchase process?

The process includes legal due diligence, signing a preliminary agreement (if applicable), payment of the deposit, signing the main purchase contract before a notary public, and registration of ownership in the land registry. The buyer must obtain a personal identification number (OIB) and pay applicable taxes and fees.

Who drafts and notarizes the purchase agreement?

Contracts are typically drafted by lawyers, notaries, or legal professionals within real estate agencies. The notary public certifies the signatures and confirms the identity of the parties but does not verify the legal status of the property or the content of the contract.

What is a preliminary agreement?

A preliminary agreement defines the purchase price, deposit amount, deadlines, and conditions of the transaction, often including penalty clauses. It is common in new developments or when the purchase depends on financing or permits.

Buying property in Croatia: Frequently asked questions

Buying property in Croatia is a straightforward process when supported by the right information and professional guidance. Whether you are searching for a holiday home by the sea, a permanent residence, an investment property, or planning to relocate, understanding the legal and practical aspects of the purchase is an important first step.

Foreign buyers often have questions about taxes, agency fees, legal procedures, ownership rights, financing options, residency requirements, and the overall buying process. They also want to understand the differences between purchasing property as a private individual or through a company, as well as the costs involved beyond the purchase price itself.

This guide brings together the questions we most frequently receive from international and domestic buyers. The answers are based on current Croatian regulations, market practice, and our experience advising clients throughout the Opatija Riviera, Kvarner, Istria, and other sought-after coastal destinations.

Our goal is to help you better understand the process, avoid common misunderstandings, and make informed decisions with confidence.

If you cannot find the answer you are looking for, our team will be pleased to assist you personally.

Buying real estate in Croatia for foreign citizens

Residence and personal identification number (OIB)

Real estate purchase process

Taxes and costs

Financing and loans

Tourist Rental

Ownership, Renovation and Insurance

Construction and land development

Market and prices

Legal support and working with agencies