Law Firm Planinic & partners
How to Buy Property in Croatia: A Complete Legal Guide for Foreign Buyers (2026)
- February 25, 2026
- Real estate
Croatia has become one of the most attractive real estate markets in the European Union. With stable EU membership since 2013, Eurozone accession (2023), and full Schengen integration, the country offers legal security combined with strong lifestyle and investment appeal. This is why more and more foreign nationals from the EU, US, and beyond are looking to buy property in Croatia.
Buying property in Croatia is a formal, registry-based legal transaction, and mistakes are often irreversible. Croatian property law is strict, document-driven, and highly dependent on correct land registry registration.
Let’s get into how to buy property in Croatia step by step, with useful references to applicable Croatian legislation and practical legal considerations foreign buyers must understand.
1. Can Foreigners Buy Property in Croatia?
This is the first and most important question. The answer depends on your citizenship and the type of property.
Can EU Citizens buy property in Croatia?
Citizens of EU Member States enjoy equal treatment under EU law, based on the free movement of capital principle established by the Treaty on the Functioning of the European Union.
Since Croatia joined the EU in 2013, EU citizens may generally acquire ownership of real estate in Croatia under the same conditions as Croatian nationals.
There is no requirement for special government approval for most types of property.
However, restrictions may still apply to:
Agricultural land (subject to transitional regimes and regulatory limitations)
Certain protected zones
Can Non-EU Citizens buy property in Croatia? (Including UK, US, Canada, Australia)
Non-EU nationals may purchase property in Croatia based on reciprocity, meaning Croatian citizens must be allowed to purchase property in the buyer’s home country. The legal basis is the Act on Ownership and Other Property Rights.
In practice:
The Ministry of Justice must confirm reciprocity.
Formal approval is required before registration of ownership.
This approval process can take several months.
Agricultural Land Restrictions
Agricultural land is subject to specific restrictions under the Agricultural Land Act.
Non-EU buyers generally cannot acquire agricultural land directly unless specific conditions are met or a Croatian company structure is used.
This is a critical point that often surprises foreign investors.
2. How to Buy Property in Croatia: A Step-by-Step Guide
Croatian property transactions follow a strict legal order. The system is registry-based, meaning ownership is acquired only upon registration in the land registry.
Step 1: Finding the Property
Buyers typically work with:
Real estate agents
Developers
Direct sellers
There is no legal obligation to use an agent. However, agents in Croatia:
Are not legally responsible for title defects
Do not conduct binding legal due diligence
Typically work in the interest of completing the transaction
This makes independent legal review essential.
Step 2: Legal Due Diligence (Critical Stage)
Before signing anything, a lawyer must verify:
1. Land Registry Status
Croatia operates a formal land registry system governed by the Land Registration Act. Ownership is valid only if registered.
A lawyer checks:
Who is registered as owner
Whether the seller has full disposal rights
Whether mortgages, liens, or encumbrances exist
Whether co-ownership issues exist
2. Ownership Validity
Ownership rights are governed by the Act on Ownership and Other Property Rights.
If ownership history is irregular (e.g., inheritance not fully resolved), the transaction may be invalid or risky.
3. Building Legality
Illegal construction is one of the most serious risks in Croatia. Compliance must be checked under the Physical Planning Act and related construction regulations.
Key checks include:
Building permit
Use permit
Legalization status (if applicable)
Zoning compliance
Failure to verify this may result in demolition orders or inability to resell.
4. Cultural or Maritime Restrictions
Properties near the coast may fall under restrictions governed by the Maritime Domain and Seaports Act.
Certain properties may also be protected under the Act on the Protection and Preservation of Cultural Goods.
These can severely limit renovation or development rights.
Step 3: Preliminary Agreement (“Predugovor”)
It is common practice to sign a preliminary agreement and pay a deposit (typically 10%).The legal basis for this is the Obligations Act.
Important:
A poorly drafted preliminary agreement can bind the buyer without adequate protection.
Deposit forfeiture clauses must be carefully structured.
Conditions precedent (e.g., ministry approval) must be included.
Many foreign buyers sign agent-drafted pre-contracts that do not adequately protect them.
Step 4: Purchase Agreement (“Kupoprodajni Ugovor”)
The purchase agreement must:
Be in writing
Clearly identify the property (land registry data)
Contain a tabular statement (“clausula intabulandi”)
Have the seller’s signature notarized
The form and legal effects are governed by the Obligations Act and Land Registry Act. Without proper intabulation clause wording, registration will be rejected.
Step 5: Payment Structure
Croatia does not have a mandatory escrow system.
Funds are often:
Paid directly to the seller
Transferred upon contract signing
Linked to registration submission
Because registration can take weeks, payment timing must be structured carefully. This is one of the most legally sensitive aspects of Croatian transactions.
Step 6: Registration in the Land Registry
Ownership is acquired only upon registration, not contract signing. The procedure is governed by the Land Registry Act.
A registration proposal must be submitted to the competent municipal court land registry department.
If documents are incomplete, registration is rejected.
3. Taxes and Costs When You Buy Property in Croatia
Understanding costs is essential if you choose to buy property in Croatia. Here’s a breakdown.
Real Estate Transfer Tax (RETT)
The tax rate is 3% of the market value, based on the Real Estate Transfer Tax Act.
The tax authority assesses value independently.
VAT (New Developments)
If buying from a developer subject to VAT, 25% VAT applies instead of RETT, based on the Value Added Tax Act.VAT is included in the purchase price.
Additional Costs
Lawyer fees
Notary certification
Land registry fees
Agency commission (usually 2–3% + VAT)
Total transaction costs typically range between 4% and 8%.
4. Common Legal Risks When You Buy Property in Croatia
Foreign buyers most commonly encounter:
Illegal Construction
Unpermitted extensions or unregistered structures.
Inheritance Disputes
Unresolved probate proceedings.
Unregistered Mortgages
Hidden encumbrances in registry.
Maritime Domain Conflicts
Land near coastline subject to public domain restrictions.
Missing Use Permit
Preventing utility registration or resale.
Each of these risks is preventable with proper due diligence.
5. Can You Buy Property in Croatia Remotely?
Yes, you can buy property in Croatia remotely. Buyers can grant a Power of Attorney to a Croatian lawyer.
If issued abroad, it must comply with the Hague Apostille Convention, and apostille legalization is required in most jurisdictions.
This allows:
Contract signing
Registration
Tax representation
Ministry approval processing
Many international buyers complete the transaction without traveling.
6. How Long Does It Take to Buy Property in Croatia on average?
EU Buyer
2–6 weeks (if no complications)
Non-EU Buyer
2–6 months (due to ministry approval)
Land Registry Registration
Several weeks depending on court backlog
7. Can You Get Residency by Buying Property in Croatia?
Buying property does not automatically grant residency.
However, ownership may support a temporary residence application under Croatian immigration law.
Legal advice is recommended before relying on property ownership for residence purposes.
8. Why Legal Representation Is Strongly Recommended
Croatia’s property system is formalistic and registry-driven.
Key realities:
No escrow protection by default
Seller-drafted contracts common
Strict land registry rejection rules
Government approval for non-EU buyers
Building legality risks significant
Legal representation ensures:
Full due diligence
Contract drafting
Payment structuring
Registration monitoring
Tax compliance
Ministry approvals
For cross-border buyers, professional legal oversight is not a luxury. It is risk management.
9. How to Buy Property in Croatia: Frequently Asked Questions (FAQ)
Can Americans buy property in Croatia?
Yes, subject to reciprocity and Ministry approval under the Ownership and Other Real Rights Act.
Is buying property in Croatia safe?
Yes, if proper legal due diligence is conducted and ownership is registered.
Do I need a Croatian bank account?
Not strictly mandatory, but often recommended.
Can I buy land in Croatia?
Yes, but agricultural land is restricted under the Agricultural Land Act.
When do I become the legal owner?
Only upon registration in the land registry.
We’re Happy to Help You Buy Property in Croatia!
Buying property in Croatia is legally secure, but only if the transaction is structured correctly.
Croatian law provides strong ownership protection, but it also demands:
Proper documentation
Correct legal drafting
Strict registry compliance
For foreign buyers, the legal system may appear deceptively simple at first glance.
In reality, it is precise, formal, and unforgiving of errors.
Law Firm Planinic & Partners Ltd.