Despite the crisis that hit the eastern Europe, exclusive real estate at attractive locations can still attract investors.
We are entering a year in which commercial real estate and luxury villas will probably be the best investment opportunities in Croatia. Bank transactions of large amounts of money are now a thing of the history. Cradit politics are strict, so the success in 2009 will be all about cash. Banks will still have to give out loans to trusted clients with an outstanding record, so use that to your advantage, but this does not mean that banks will finance risky and speculative projects.
There is also talk that soon many new properties will be available for sale, so this is a great moment to spend your cash in Croatia and buy exclusive commercial real estate or luxury villas on the Adriatic coast.

One well known English real estate web site had an interesting way of describing the situation on the Croatian real estate market!
Under the title “Croatia open for business”, the article states that the liberalization of the Croatian real estate market is an excellent news for foreigners and all potential investors in real estate. It also states how the new situation was one of the terms for Croatian entry into the European Union, so all buyers from non-EU countries still have to fulfill the reciprocity term, which means their countries have to allow Croatian buyers into their market too. The parliamentary opposition was against these new regulations cause it opens the doors for all foreigners to buy the most valuable properties of all in Croatia, the land and real estate on the Adriatic coast.
Still, this does not mean that you can’t enjoy the benefits of these new laws. Leave the Croatian politics to the polititians, the market is secure and safe and ready for investment.

Opatija is one of the main tourist resorts on what is called the Opatija Riviera. It is a strip of 8 tourist resorts on the eastern coast of Istria – Opatija, Icici, Ika, Lovran, Medveja, Moscenicka Draga, Moscenice and Brsec.
Opatija is one of the grandest names of Croatian tourism, which started in 1844 when Hignio Scarpa built a big villa. Many royalty of the Austro-Hungarian Empire and Europe stayed in this resort, as did many famous celebrities.
Main tourist attractions in the area are old villages Icici and Ika, Lovran with its old town and hotels, Medveja and Moscenicka Draga with beautiful beaches, and the medieval towns Brsec and Moscenice settled on the nearby hills.
Lovran is a significant boutique destination on the Riviera, with a number of exclusive and renovated villas dating back to the times of the Austro-Hungarian monarchy. There are many beaches and a well known Orthopedic Clinic situated in Lovran. Moscenicka Draga is just 15 kilometers from Opatija and it has one of the most beautiful beaches on the Adriatic Sea. Also, situated just outside of Opatija is a well known nautical centre Icici and its ACI Marina with 300 sea berths and 40 land berths, and a wide range of nautical services.
If you are interested in knowing more about the Opatija Riviera and investing in real estate in the area, feel free to contact us at www.trasa-realestate.com. We will provide you with all the necessary professional and legal assistance and point you to the best investment opportunities in Opatija.

We give you the answers to questions concerning purchase of real estate in Croatia.We have plenty of legal acts and laws concerning traffic of real estate and in connection with real estate in general. It is our intention to give answers on issues that might be of interest to you. Feel free to contact our agency directly in order to find out more.

Are foreigners allowed to buy and sell real estate in Croatia?

Citizens of the European Union are equal to domestic population when it comes to buying real estate. Others need consent from the Ministry of legal affairs and the Ministry of foreign affairs. These are issued to citizens of those countries Croatia signed a contract on reciprocity with. Otherwise, they need to have a business registered in the country.
When it comes to selling, foreigners sell real estate in Croatia with no legal problems.

What is the real estate purchase tax in Croatia?

Croatia has a unified tax rate of 5% for all types of real estate and respective transactions. The tax is defined based on the price of the real estate in the contract and the value estimate by the tax authority. Tax on purchase of real estate is paid by the customer or the seller on behalf of the customer.

When must this tax be paid?

After conclusion of the sales contract the customer is obliged to register the purchase at the authorized tax authority within 30 days. The customer is obliged to pay real estate purchase tax within 15 days from the day of reception of the decision received from the tax authorities. If this tax is not paid within this term, interest are charged for every day of delayed payment.

Does the seller need to pay taxes?

No. Only in the case the real estate is sold prior to the expiration of three years after it has been purchased and if its sold at higher price than purchased. In such cases the seller has to pay a 35% income tax on the difference in value of the real estate increased by local taxes.

Is it possible to verify and conclud the contract abroad?

Yes. In such cases it is best to have it verified in a Croatian embassy or consulate. If you verify such a contract before a public notary, then this verification  has to be translated into Croatian by an appointed interpreter.

Is it possible to pay the tax in foreign currency?

The tax is to be paid by bank or post office money transfer. The amount is converted into Kunas at the middle exchange rate by the National bank of Croatia at the day of payment.

Here you go! There will be more facts on buying and selling real estate in Croatia soon at this blog.