Buying a house by the sea in Croatia is legally straightforward for buyers from Germany and Austria, and practically different from what most expect. This guide covers exactly what differs from buying at home and leaves out what is the same everywhere.
Are foreigners allowed to buy?
Nationals of EU member states, which includes Germany and Austria, acquire property in Croatia on the same terms as Croatian citizens. No consent and no waiting period are required.
For nationals of third countries, which includes Switzerland, a different procedure applies, based on the principle of reciprocity and requiring consent from the competent ministry. Whether and on what terms that applies in your case is something to settle before you search, not after you have made an offer. A route often used in practice is buying through a Croatian company, which anyone may establish and which acquires as a domestic legal entity. Whether that route makes sense for you is a tax question, not a property-law one.
What you need before your first offer
- A Croatian tax number, the OIB. Without it no sale contract can be concluded and no registration made. Obtaining it is straightforward and can be done by an authorised representative.
- A Croatian bank account is not compulsory, but it makes payments, taxes and running costs considerably easier.
- A lawyer you trust. Not required, but strongly advisable when buying from a private owner.
Financing: usually not in Croatia
Most German-speaking buyers do not finance through a Croatian bank. Loans to non-residents are possible, but terms, equity requirements and processing times are generally less favourable than what you would get at home.
The usual route is financing against your own property or bank at home and buying in Croatia as a cash purchase. That has a practical side effect: sellers value an offer without a financing condition noticeably higher, and on sought-after properties that often matters more than price.
Buying from abroad
You do not have to be in Croatia to buy. With a power of attorney certified by a notary or at a Croatian consulate, the entire process can be completed without you travelling, including signing, filing the tax and registering ownership.
What we nonetheless strongly recommend is seeing the property yourself at least once, and outside the high season. A village in August and the same village in March are not the same thing, and that difference is the most common source of later regret.
What differs from Germany or Austria
- The notary in Croatia does not usually draw up the whole contract in the German sense but certifies the signatures. The contract is normally drafted by a lawyer. Do not assume the notary is checking your interests.
- The cadastre and the land register are two separate registers and their records do not always agree. Reconciling them is a distinct task and belongs before the offer.
- Inheritance left unsettled across several generations is far more common than in German-speaking countries. A house with five co-owners is not a legal curiosity here but an ordinary Tuesday.
- A bilingual contract is customary and sensible. Do not sign anything whose wording you have not read in your own language.
Letting and taxes
Holiday letting is possible and widespread, but requires a categorisation decision. The procedure is standard and is started after the purchase.
On the taxation of rental income and how it is treated in your country of residence, double taxation treaties exist between Croatia and the German-speaking countries. How that works out specifically depends on your residence, the rest of your income situation and the ownership structure you choose. That is a question for your tax adviser, and one to ask before buying, because changing the ownership structure afterwards costs money again.
The most common mistakes
- Searching by price instead of by place. A cheap house in a village that closes from November to April is no bargain if you meant to come in May.
- Buying agricultural land at building-land prices, hoping for reclassification.
- Not budgeting the additional costs. Reckon on about 4 to 5 percent above the price.
- Relying on what the neighbours built. An existing house near the water is often older than the current rules.
- Viewing only in August.
Next step
The full cost breakdown with worked examples is in the guide to purchase costs. If you are considering land, read building land or agricultural land first. For what is currently available, see property on Pelješac. We advise in German, from the first question to registration.
Villages covered in this guide
About the author
Sottomonte
Real estate agent
Lives and works on Pelješac. Handles sales, from stone houses for renovation to building land by the sea. Checks the land register, cadastre and permits personally before any offer goes out.