Property in Croatia: Buy, Sell, Papers, Lawyers & Agents

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Buying property in Croatia? There are some great deals, but BE careful. The buying process, useful websites, rental law, property management & legal advice.

Buying property in Croatia: an introduction

There is no property buying experience quite like the Croatian one. It is possible to go from viewing and pre-contract in 55 minutes and final sale the following day. Or to still not be the 100% owner several years later due to unclear situations with the paperwork and shady lawyers and real estate agencies.

There are tales of fantastic deals, more tales of frustrating paperwork, as well as various scams. One thing is for sure – buying property in Croatia is different from many other countries and can be challenging. On the flip side, prices are still lower than in many other countries. The quality of construction is generally high, good rental income is possible, and there are amazing cities, towns and other locations where setting up your everyday life or rental business could be very pleasant and lucrative.

And so the story begins….

Development of the property market in Croatia

The war and post-war years in Croatia affected the market severely and there was hardly any activity. After the war, with the privatisation of state and communal property, economic recovery, capital becoming available and the situation with the paperwork becoming more regulated, the property market exploded. The years between 2000 and 2006 were the most active, affected positively by foreign investment, the rise of local developers, easier access to capital for private persons, investors and developers, a drop in interest rates, and a rise in all macroeconomic indicators. In a positive environment, demand initially outstripped supply, construction exploded, and prices rose.

Negative trends were already visible in 2006, and the market crashed in 2009, as it did globally. The crisis initially saw a sharp fall in the number of transactions, and only later, after Croatia joined the EU in 2013 (which forced banks to clear their portfolios of toxic loans and unprofitable property portfolios), with a drop in prices. It persisted longer than in most other countries. The market finally started showing signs of recovery in 2016. Since then, we have been seeing year-on-year increases in prices and numbers of transactions in Zagreb and the larger cities on the coast. This is due to accumulated capital, rising demand from both locals and foreigners, low interest rates, government subsidised loans for the purchase of a first property, rising macroeconomic trends, and a positive economic outlook, driven by tourism.

2019 already indicated a need for the market to ‘cool’, with a drop in the number of transactions. Average income earners started putting off purchases due to unrealistically high prices and a lack of average-priced properties. The pandemic and the earthquake in Zagreb have left a significant mark, and the market is currently in a state of uncertainty.

The Croatian market by region overview

The Croatian market is very segmented. Zagreb, as the capital, financial and cultural centre, is always active. The last few years have seen the construction of mainly high-end new builds, lack of affordable and average-priced properties in older buildings, lack of stock in the parts of the city which have been affected by the tourism boom, with many properties being converted into Airbnbs, and a rise in prices.

The larger cities and tourist hubs on the coast, namely Dubrovnik, as the most expensive. Split, Zadar, Pula (and the whole of Istria) have also developed over the last decade. Tourism drives the market, these cities’ major source of income, and the basis of their economy. Many properties have become rentals, creating a lack of stock and thus an increase in prices. New builds are selling at above-average price.

The situation in some continental parts, namely Slavonia and Lika, is in stark contrast to the coast and Zagreb, as these parts of the country have been experiencing a demographic and economic decline for the past decade. The pandemic has slightly shifted the focus of buyers to these rural and less developed parts of the country, but not significantly, so the number of transactions and prices are still well below the country average.

The northern continental areas of Croatia, those around Varaždin and Čakovec, and increasingly those around smaller cities near Zagreb, namely Bjelovar, have a stable market. These parts of the country base their economy on small entrepreneurship and family businesses, and there have been no sharp changes in the numbers of transactions and prices over the past decade.

Croatian property paperwork – is it really that bad?

The situation with title deeds and other property paperwork in Croatia is far from straightforward due to historical reasons. A very important thing to note is that are three property registries in Croatia: the Cadastre (‘’Katastar’’), which determines the situation in space i.e. the shape and size of the plots, and what is on them, and the two registries which determine ownership: The Land Book (‘Zemljišna knjiga’) and the Book of Deposited Contracts (‘Knjiga položenih ugovora).

The Land Book and Cadastral Registry came into being while Croatia was still in the Austro-Hungarian Empire, and were later badly maintained by the authorities in Yugoslavia. After the 2nd World War, the Yugoslavian socialist government nationalised many private properties, mostly flats in buildings, houses less often, and moved in residents who became the State’s ‘Tenants’, governing the scheme with the so-called ‘Stanarska prava’. The state also built many buildings for the rising working and middle classes which were flocking to the cities. The Tenancy i.e. ‘Stanarsko pravo’ was in both situations registered in the Book of Deposited Contracts.

The right of use of such properties could be inherited by first-line descendants and traded, but not sold/bought. Foreign property sales were illegal in Yugoslavia. Consequently, sales were few and far between, mainly of those properties which remained privately owned. Throughout this period, neither the Land Book, in which private ownership was still registered, nor the Cadstre, were updated.

Updating the ownership books

After Croatia gained independence in the early 90s, the process of de-nationalisation began. Some nationalised properties were returned to their original owners, while in parallel, the Tenants who had been living in nationalised or state-constructed properties for 50 years, were given the option to purchase the ‘Stanarska prava’ at affordable prices, to fill Croatia’s empty coffers.

The updating of all the three registries, both at the point of nationalisation and de-nationalisation, wasn’t done. It still needs completing in some cases. The Book of Deposited Contracts (a completely obsolete entity, since the abolishment of Stanarska prava) and the Land Book have still not been merged completely. However, the Cadastre and Land Books have also not been fully aligned yet. Houses, and more recently constructed properties (both houses and flats), from the end of the 90s onwards, have all been registered in the Land Book, so the situation with those is clearer.

Another major issue that muddles the waters is the inconsistent and imprecise descriptions of properties in the titles. This is due to the fact that the process of separating all the buildings into condominiums is often incomplete. It requires the agreement of all the co-owners about which ratios of the common areas belong to whom, measurement and recording of all the individual units and common parts, and the bureaucratic process of registering the actual surface areas and ratios in the titles.

On the plus side, most of the paperwork relevant for property transactions is available online. This makes the process of due diligence easy and quick.

Legality of properties

The final aspect to consider is the legality of a property. Many properties were built illegally, or outside the framework of their building permits, in Yugoslavia, including some built by the State, as well as during the construction boom of the early 2000s, which is why the Law on the Treatment of Illegally Constructed Buildings was introduced in 2012., enabling owners to legalise their properties, if they were built within a construction area. The end result of the process is that properties should have a valid ‘Uporabna dozvola’ (Usage permit).

Before purchasing a property, it is of paramount importance to check the Cadastral registry and the title. And request the Usage permit from the owner. A real estate agency and/or a lawyer should check all documentation relating to a property.

The Croatian property buying process

Finding a property

You can search on your own via property advertising sites, but this comes with lots of challenges. Not all sites have English versions. As an ex-pat, you may not have a clear picture about which locations, micro-locations and local criteria add up to a sound investment.

Very few listings in Croatia are exclusive to one agency, and are hence available several times on property advertising sites. The listing for the same property can be different from agency to agency, with even a different price advertised, making it impossible to realise that you are looking at an ad for the same property before you actually view it. Some agencies do not describe the properties precisely, so you may not have all the necessary information about them when looking at the ad, consequently leading to disappointment when you come to the viewing. You could come across the listing with an unreputable agency with little experience, thus exposing yourself to risk. It is less time-consuming and easier to hire a reputable agency whose job will include proactive search activities and filtering based on your criteria, budget and expectations.

Making an offer

Offers are non-binding until a Pre-Contract or Contract signature. Prices of most properties are between 5-10% above the seller’s completion price. Property prices in Croatia are pegged to the Euro, though the legal tender is Kuna, so when paying in kuna, the buyer is most often expected to pay according to the selling exchange rate for EU/KN, as this enables the seller to buy the stated amount of euros. If you are working with an agency, leave the negotiating process to them.

Getting to a legally binding document

A Pre-Contract or Contract will be signed once the property has been chosen, and all the paperwork, including the legal status, checked. Consult with your lawyer and agency about which is more appropriate, but in most cases, it will be the first. One of the reasons for signing a Pre-Contract is that the buyer doesn’t pay Property Transfer Tax at this point, as it is levied at the time of the signing of the Contract. A Pre-Contract does not require a notary.

Whichever document is signed, the buyer will be expected to make a downpayment (‘kapara’) immediately after the signing, which is most often 10% of the total sale and purchase price.  If the buyer doesn’t fulfill their obligations from the Pre-Contract and doesn’t sign a Contract, the full downpayment remains with the seller. On the flip side, if the seller doesn’t do so, they must return the double amount of the downpayment to the buyer.

The Pre-Contract and Contract will define all the other rights and obligations of the contracting parties, the sellers’ most important being the guarantee that they are the rightful owner and will not sell the property to anyone else, as well as the rhythm of payments, the date of the possession handover etc.

Making a payment

Laws that govern money laundering and financing of terrorism are becoming increasingly strict, especially in the property segment. Banks, real estate agencies, notaries, currency exchange offices and any legal entities, must by law conduct thorough reviews of the buyer’s and seller’s sources of income and must report any dubious transactions, persons and legal entities to the Ministry of Finance.

Essentially, no cash transactions for purchasing property are possible and are a serious risk indicator requiring the entity witnessing it to report immediately. Buying property in Croatia, from a Croatian seller, will be via a bank transfer, in Croatian kuna. Foreign currency transfers within Croatia are against the law.

Registering the ownership of a property

One used to have to go the relevant land book registry office and hand in all the paperwork physically in order to transfer the ownership of a property. This step of the sale and purchase process has been simplified and can be done by the public notary in whose office the Contract is being signed and notarised. Depending on the time of year, i.e., holiday seasons, and the efficiency of the individual offices, the ownership transfer takes from within a few days to a few weeks.

The documents which are needed for the transfer of ownership are the signed and notarised Sale Contract, the ID cards of the contracting parties, and most importantly, a signed and notarised Clausula Intabulandi, a document with which the sellers confirm that they have received the wholesale and purchase price, and which they are obligated to hand over to the buyer once the funds have been received.

Paying the tax

The main tax in property sale and purchase transactions is the Property Transfer Tax, which is levied on the buyer at the rate of 3% of the total sale and purchase price, once the Sale Contract has been signed and notarised. The notary does the application and the buyer doesn’t need to do anything further. Other taxes which might affect the buyer or seller differ depending on their income, legal status etc.

Handing over possession

In the majority of cases, handing over the possession of a property happens on the day the seller receives the total agreed sale and purchase price. The property should be handed over in the seen condition and with fittings previously agreed by the contracting parties. The handover needs to be recorded, with the utility meter numbers and readings included, as these are needed for the transfer of utility consumption agreements with the providers from the seller’s to the buyer’s name. It is very important that the buyer brings proof of payment of all the utilities up to the day of the handover of possession.

Transfer of bills

The Handover record, signed by the buyer and seller which states the utility meter numbers and readings, a bill for the relevant utility, a notarised and certified copy of the Sale Contract and the ID card of the buyer and seller, have to be submitted to the relevant providers. Anyone can do this, not the buyer in person, and some providers accept online or postal applications.

Getting an OIB

An OIB is available from the Tax Office, in person, with a valid ID document.

Finding the right real estate agency and lawyer

Legal agencies-the first step in finding the right partner

Back in the late ’90s and early 2000s, literally EVERYONE was a real estate agent. Lawyers, architects, construction engineers were handling property transactions If you were a foreigner visiting out of season, the restaurant waiter would come out with 5 property deals when serving your starter. There was no regulation whatsoever. Anyone who wanted to could become a real estate agent. The good news is that there is much more regulation in the industry these days, after the introduction of The Law on Property Mediation in 2007. All legal real estate agencies and agents are in the Register, which is public and available on this link.

In order to be legal, an agency has to fulfill several important requirements: at least one of the real estate agency’s employees must pass the expert exam at the Croatian Chamber of Economy, and has to be a full-time employee. The real estate agency has to operate out of adequate, professional-looking offices, with a separate space for confidential meetings, must have insurance, and must keep a so-called mediation log. The real estate agency has to display the mediation terms and conditions on a visible location, and its logo in all its adverts and online listings.

Very importantly, the real estate agency has to check the paperwork of all the properties it lists, and inform its clients of any potential issues. Agency fees can be set freely and negotiated with the client, can be charged from either party in the sale or renting process (or both), with all the terms of the Mediation process agreed in writing. Ensure that you are collaborating with a legal agency to avoid damages, and sign a Mediation Agreement with the agency, which should outline all the terms and conditions of your collaboration.

High quality agencies-the 2nd step in finding the right partner

Make sure you are collaborating not just with a legal, but also a reputable real estate agency. Although all agencies have to be legal, their licence is not a guarantee of professionalism and reliability. What should you consider besides the agency’s legal status?


Make enquiries about the agency’s owners, directors and agents, and what their areas of expertise are. You should have access to marketing, sales and negotiation experts. It would be an advantage if the particular agent you are dealing with has passed the expert exam. Check the real estate agency’s references and client list. Make sure they have a website, and don’t only list on commercial property advertising sites. Have a browse through it, because a reputable real estate agency will invest in their online presence and appearance.

Focus on client needs

A reputable agency will strive to understand its clients and their needs, in order to offer a service focused on finding solutions and the right property. Buyers and tenants will especially benefit from the services of a real estate agency which tries to gain an in-depth understanding of their search, gives advice and ultimately resolves one of the biggest challenges they might face finding an ideal home or investment opportunity.

Legal Support

Bear in mind that a legal agency does not have to guarantee this by law, but reputable and experienced agencies will have a legal team specialising in property law, so can thus guarantee legal support and protection to its clients. If you are not 100% sure the agency is reputable, seek independent legal advice.

Market Insight

Expert agencies have the best market insight and understanding of the trends shaping it. This means they will give you informed advice, and the longer they have been operating, the more you will be able to rely on it. An agency which has been operating for long, and has thus had many completions, will inform the owners and buyers of precise and realistic market values as it will keep its own databases, but will also have access to the Tax Office’s database ”E-nekretnine”, which is not available to the public. This is important, as prices advertised on search engines are unrealistic and misleading, because they often represent the owners’ wishes and not the true market value of a property.


This is more relevant to sellers, but can also help the buyer get a clearer picture of the agency’s quality. An agency has to be a marketing expert. Its website is the primary channel through which the properties present themselves, and those with good websites get more enquiries. Web sites should be attractive, user-friendly and responsive.

They should rank well on Google, so that the listings are visible to as many prospective buyers and tenants as possible. Agencies that keep up with trends will have Facebook pages and Instagram feeds. The presentation of the flats, houses or other properties is important, as a listing with a well-written description containing all the relevant information on the property, and high quality, realistic photos, is more visible and attractive to buyers.

Additional Services

Besides offering marketing, useful market information and expert advice, high-quality real estate agencies will offer additional services related to property transactions. Managed handovers, energy efficiency certificates, access to architects and interior designers, construction and legalisation experts, are just some of the services or recommendations that high-quality agencies provide.

How to find a good property lawyer in Croatia?

Things are MUCH better now with better regulation, but back in the 2000s rush, the stories were quite astonishing. It used to be the case that you could find a lawyer who had a power of attorney for both the buyer and the seller AND was the real estate agent. The same lawyer insisted the papers were clean. And STILL there would be a problem.

Generally speaking, lawyers often make bad mediators, as they need to predict the worst possible outcome and protect their client against it, often undermining the final goal, which is a completion. They often procrastinate and over-complicate, as the latter enables them to justify their fees. Many do not specialise solely in property law, making them inexperienced and thus unreliable.

Do your research thoroughly before instructing a lawyer. Ask about their areas of expertise, ensure you have not been assigned to a junior lawyer without experience, but neither to a very senior one who will not have enough time for you. Enquire about whether they have any mediation experience, and try to informally check their credentials. Expat forums are a good place to start, as most foreigners living here will have had some lawyer experience. Reputable real estate agencies will also be able to recommend a lawyer focusing of property law, whose goal is to complete a transaction to the benefit of both sides, while at the same ensuring appropriate legal protection.

Legalisation of property in Croatia – usage permits, 1968 and all that

Croatia had lots of illegal properties, though the exact numbers were hard to ascertain. Illegal properties are those which were built after 1968 either

1. outside of a designated building zone or

2. in a building zone, but were over-developed in comparison to the building permit. High numbers of illegal properties, especially in the 2nd category, are the result of the combination of a historically loose legal framework and granting of planning permission, which was lengthy and expensive in Yugoslavia.

Illegal construction was prevalent on the coast, where it started to occur in parallel with Yugoslavia’s development of tourism in the ’70s, and in rural areas, where the costly and lengthy permit-issuing timelines often exceeded the cost of constructing agricultural buildings. Many properties from the late 1990s, when the market was immature, demand was high and levels of stock were low, were also illegal, as developers, who were small to medium-sized, applied a very loose framework to their projects, and laws governing construction and urban planning were either unclear or not in force.

EU accession

With Croatia’s accession to the EU, the resolution of the problem of illegal construction became a priority, and resulted in the Law on the Treatment of Illegally Constructed Buildings, passed in 2012, which enabled the owners of illegal properties in building zones to legalise them if they were recorded on aerial photos of Croatia from 2011 or earlier. Properties outside building zones were designated for demolition.

The legalisation project had a sound goal, as legal properties have higher market values and once legalised could be precisely registered in the cadastre and land books, but the process was complicated and lengthy. For owners with lots of illegal volume, the costs were high. The process involved a multidisciplinary approach, and proved challenging both for the owners and the authorities having to deal with the applications. There are 4 types of property categorisation, with the easiest legalisation process applied to auxiliary buildings such as garages and barns.

The legislation process, in laymen terms.

1. Organise an architectural and geodesic plan, depending on the type of building. The architect draws up a plan of the actual building. The geodesic expert ascertains whether the building aligns with its cadastral registration. Costs of such plans depend on the size of the building, both are not requirements for all buildings.

2. Paperwork and the legalisation request into the local authority.

3. An inspection by the local authority.

4. A confirmation is issued to the owner about the property being able to remain in space, subject to fines being paid and no further construction occurring.

5. The owner pays a fine for the illegally constructed volume.

6. The owner pays a fine for the unpaid infrastructural contributions to the local authority and utilities. This is based on the illegally constructed volume.

7. New architectural and geodesic plans are drawn up to ensure that the owner hasn’t illegally constructed further since the 1st inspection.

8. Conformation of plans.

9. The owner hands in the plans to the cadastral registry.

10. The owner hands in the plans to the land books registry.

Legalisation deadline

Initially, the government set the deadline for the submission of legalisation requests for 30.06.2013. As many owners handed in only partial requests, and the authorities were not able to process requests efficiently enough. The government then decided in 2017 to enable all those owners of illegal properties who would have satisfied criteria for legalisation in 2012 to start the process. The new deadline for applications became 30.06.2018. The Law is no longer in force, but one can still legalise buildings under the provisions of other laws. Namely, the Law on Construction, and in consultation with the Ministry of Physical Planning, Construction and State Assets.

Can foreigners buy property in Croatia?

EU and Swiss citizens

EU and Swiss citizens (private persons) can acquire most types of property as Croatian nationals and companies headquartered in Croatia, without restrictions, with an additional requirement for Swiss citizens, who, when registering their ownership, have to show proof of temporary residence. No foreign nationals can purchase agricultural land for now, and there is a moratorium in place for EU and Swiss nationals until 2023.

Non-EU citizens, including the UK:

There has been no indication that non-EU/EEA citizens will ever be able to purchase land in Croatia, with one exception: if they open a business in Croatia, because of which they will be employing and paying taxes, the companies will contribute to the Croatian economy, and thus become ‘Croatian’.

For other property types, the basis of purchase for non-EU and UK citizens is the principle of reciprocity. (“uzajamnost za stjecanje prava vlasništva na nekretninama u Republici Hrvatskoj”). The principle is based on agreements between Croatia and other countries, which differ, but generally mean that if Croatian citizens can buy in a certain country, the citizens of that country can buy in Croatia. The agreements define the conditions under which the citizen of a certain country can buy property, which can be the requirement of having permanent residence in Croatia, or the property size, or the requirement for the buyer to live in the acquired property. For the US and Canada, reciprocity agreements are at the state and province levels.

The list of agreements defining reciprocity is available on this link

The request for purchase of non-EU and Swiss nationals goes to the Ministry of Justice, in person, or by post to the following address:

Ministarstvo pravosuđa i uprave Republike Hrvatske
Uprava za građansko, trgovačko  i upravno pravo
Ulica grada Vukovara 49, 10000 Zagreb

Paperwork required to submit as foreign buyer

The request has to include the following paperwork:  

  • Original or certified copy of the Sale-Purchase Agreement, Gift Agreement, etc.
  • Seller proof of ownership, title deed.
  • Proof of property being in a construction area, issued by the local authority under whose jurisdiction the property is in
  • Proof of the buyer’s citizenship (‘dokaz državljanstva stjecatelja’). This means a notarised copy of the passport, or the proof of the legal status of the buyer. If it is a company, i.e. the registration of the company from the Trade Court registry
  • Original of notarised copy of the power of attorney, if the buyer has another person or legal entity
  • Proof of paid fees

The legal requirement for the Ministry to approve the sale and purchase is 60 days. But most requests get approval sooner.

Paperwork required in a Croatian property sale and purchase

The first step in any sale and purchase process should be the due diligence of the paperwork. Most of the relevant paperwork is available online. Since 2003. the government has been working on reforming and linking the various registries. The aim is to ensure transparency and clarity in property transactions.

Issues remain. Many properties still have a different nomenclature in the cadastre to that in the land book. For example, a certain municipality may ‘Centar’ in the land book, but ‘Grad Zagreb’ in the cadastre. The plot surface areas may also differ in the cadastre to that in the land book. The persons registered as possessors in the cadastre may be different to those in the land book title. The property may not have a precise description in the title. In order to have a clear picture and understanding of potential discrepancies, and in order to understand what is and what isn’t a hindrance to the completion of a sale and purchase, you should hire a reputable real estate agency and lawyer.

Also, documents like building and usage permits are not available online, they should be obtainable from the owners. But if they do not have these documents, try their local Municipal office or the City.


A very useful and user-friendly tool which represents the central information point for all geodesic information by presenting aerial photos of the whole Croatian territory with the cadastral and urban planning information superimposed.

Documents can be printed.


The registry shows the situation in space based on aerial photos and provides information on the plot. This includes shapes and sizes, who is in their possession and what is constructed on them. One can search via an address or the name of the cadastral municipality is in and the plot numbers.

The cadastral excerpt and possession title can be printed.

There is an electronic link to the land book, but not the book of deposited contracts.

Land book

The registry shows the ownership and legal status of properties, as well as claims by banks and third parties. And also any registered proceedings (‘plomba’) which may be a hindrance to the sale and purchase. The information needed to access the title deed is the name of the cadastral municipality the property is in and the land book excerpt or land plot numbers.

The title deed can be printed.

Book of deposited contracts

A registry dating back to socialist times, into which the properties given into rent or constructed by the state for renting were registered. For years the government has planned to transfer all the properties from this registry into the land book. But the process is still incomplete.

The title deed can be printed

Zoning and urban planning rules

Crucial information if you are buying land, but also if you planning to reconstruct or further develop existing properties. What can be constructed is determined by the urban plans, which are drawn up and issued by the local authorities. The urban plans are not always available online (though it is always worth searching). But zoning and urban planning information are available from the ‘Upravni odjel za graditeljstvo i prostorno uređenje’. (Administrative Department for Construction and Physical Planning). The list of all the offices by county is available here

Taxes for property in Croatia

The table lists all the taxes which may arise from buying or renting property in Croatia. Please note that Croatia introduced and then withdrew the Property Tax and there is no clear timeline for its reintroduction. However, the EU is pressuring Croatia to introduce it, as most EU countries already have this tax.

NATIONAL VAT 25% Lower on certain categories, none affecting the property market.
All new builds will have VAT absorbed in the price presented to the buyer.
1. 10%
2. 18%
1. income up to 7.5mil kn/yr
2. income 7.5mil kn/yr or above
COUNTY INHERITANCE AND GIFT TAX 4% Levied on cash, pecuniary claims and securities and movables,
if individual market value amounts to more than HRK 50,000.00 on the date of tax assessment.
CITY/MUNICIPAL HOLIDAY HOUSES 5-15 kn per m2 Levied on m2 of property. Determined precisely by the local authority
PROPERTY TRANSFER TAX 3% Levied on price if VAT is not charged.
2. up to 12%
3. up to 15%
4. 18%
1. County
2. City with pop < 30k
3. City pop > 30k
4. City of Zagreb
Levied on income
2. 30%
1. up to 360k kn/yr or 30k kn/month
2. above 360k kn/yr
Levied on income from employment (salary and pension),​ self-employment,
income from property and property rights, income from capital, and other income.

More information

The TC Property in Croatia page was a collaboration with real estate specialists, Zagreb West. drawing on their decades of experience in the industry.


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