Croatia is a country in the south east of Europe. The country has a large coastline bordering the Adriatic Sea, with a number of islands, both inhabited and uninhabited. Like Bulgaria, Croatia is a newly developing country with unspoilt resorts and comparatively cheap property prices. The market is still in its infancy, so properties can be picked up cheaply, though waterfront and seaside properties are at a premium.
When purchasing a Croatian property, bear in mind that the process differs significantly from the UK. The first steps, i.e. searching for a property are the same. However, once a property has been found (and ideally, a written survey obtained), the pre-contact stage commences. This is simply the payment of a 10% down payment. Usually, it is a condition that if the vendor pulls out they pay you 10%.
Next, an application to own the house must be made to the Foreign Ministry Department, something all foreign investors must do if taking ownership by any other method than inheritance. The application must be made to the Ministry of Foreign Affairs, who will seek advice from the Ministry of Justice, Administration and Local Government. As a result, this process can take a while! This slow process can be avoided by purchasing property through a Croatian company, even if the company is foreign owned. The 5% transfer tax can also be avoided on subsequent property transfers.
Once the Ministry of Foreign Affairs have finished, and you have been approved to purchase property. The notary fees are low, as all that is required is a signature. The documents must then be submitted to the land registrar at the local court. Registration is requested on behalf of the buyer by a lawyer or the estate agent.
Next, a 5% real estate purchase tax will have to be paid. This is based on the purchase price as agreed in the sales contract, and should be paid to the local tax authority, by bank or post office money transfer. The payment can be made in pounds, and it will be converted into Croatian Kuna at the middle exchange rate of the National Bank of Croatia on the day of payment.
This is a very complicated and time consuming process, and so as a foreigner, it is probably best to purchase through an agency, which should have staff fluent in the local language, and should know local lawyers who can operate on your behalf. If the lawyers are known to the agency, then they should be used to dealing with foreign clients. If you do not wish to go through an agency, it is a good idea to learn a few words of conversational Croatian. The goodwill gained will be immeasurable, and it could help out in some circumstances.