Immobilienkauf in Kroatien - Interview mit Rechtsanwalt Stefan Đokić

Summary

This video features a conversation with Stefan Jokic, a Croatian lawyer and honorary consul of Germany in Croatia, discussing key aspects of purchasing property in Istria, Croatia. The discussion covers important topics such as the initial steps in buying property, financing options, legal considerations, taxes, and the role of a lawyer in property transactions. Additionally, it explores the process of property registration, taxes, whether to buy property through a Croatian LLC, and the rental market. The video provides valuable insights for potential buyers, emphasizing the importance of legal assistance and offering practical advice for a secure transaction process.

Takeaways

• 😀 EU citizens can buy property in Croatia without additional approvals since 2013, after Croatia joined the EU.
• 😀 Financing is available in Croatia, with interest rates as of May 2024 lower than in Germany, with a maximum rate of 4%.
• 😀 The Croatian legal system requires a lawyer to review property documents and handle registrations, as notaries play a smaller role compared to Germany.
• 😀 Property purchase agreements must be translated into both Croatian and German, with the notarization done in Croatian.
• 😀 Legal assistance is available in German, English, and Italian, and the entire process can be managed in these languages.
• 😀 Buyers do not have to be physically present for the contract signing in Croatia; a lawyer can sign on their behalf.
• 😀 For EU citizens purchasing property in Croatia, it may make sense to buy through a Croatian LLC (GmbH) to save on VAT and property transfer tax.
• 😀 The creation of a Croatian GmbH involves a relatively simple process, with a one-day visit to Croatia typically sufficient for signing the necessary documents.
• 😀 The property registration in Croatia is quick and often completed within 24 hours, with digital access to the land registry available for transparency.
• 😀 After purchasing a property, buyers can rely on the real estate agency to handle utility transfers and have access to a 2-year support service for any post-purchase inquiries.

Q & A

What is the first step when purchasing property in Croatia?

The first step is to contact a real estate agency to find a suitable property for purchase.

Should I arrange financing before purchasing property in Croatia?

Yes, it is recommended to arrange financing beforehand as it helps determine your budget and gives you a clearer idea of your expenses during the property purchase process.

Can I finance property purchases in Croatia, and what is the interest rate?

Yes, financing is available in Croatia. As of May 2024, the highest interest rate is 4%, which is generally lower than in Germany.

Can I, as an EU citizen, purchase property in Croatia in my personal name?

Yes, since 2009, EU citizens can purchase property in Croatia without further approval from the Ministry of Justice. This has been fully available since Croatia joined the EU in 2013.

Who is responsible for checking the documents and land registry entries for a property in Croatia?

In Croatia, a lawyer is responsible for verifying the legality of the property, reviewing contracts, examining the land registry, and ensuring proper legal procedures. The notary’s role is limited to certifying signatures.

How high is the property transfer tax in Croatia, and when is it due?

The property transfer tax in Croatia is 3%, calculated on the value of the property, excluding movable inventory and furnishings. In some cases, such as with newly constructed properties, this tax may not apply as it is included in VAT.

Can property purchase contracts be written in both Croatian and German?

Yes, contracts are typically written in both Croatian and German. The Croatian version is notarized as it is the official language, but both versions are legally valid.

Do I need to be physically present in Croatia to sign the property purchase contract?

No, the buyer does not need to be present in Croatia for the contract signing. The buyer can authorize a lawyer to sign on their behalf.

When does it make sense to purchase property through a Croatian GmbH (limited liability company)?

Purchasing property through a Croatian GmbH is beneficial when buying from a VAT-registered seller, as it allows you to deduct VAT and avoid the 3% property transfer tax. This is especially advantageous for those looking to rent out the property.

What are the typical costs associated with setting up a Croatian GmbH for property purchase?

The costs for establishing a Croatian GmbH include notary fees (approximately 4500 EUR), translation fees (100-200 EUR), and lawyer fees (1500-3000 EUR depending on complexity). The minimum share capital required is 2500 EUR.

How long does it take to finalize the property purchase and transfer ownership in Croatia?

The time it takes to register ownership can vary by location. In some areas, such as Pula, the registration can be completed in less than 24 hours. In other areas, it may take several weeks, but the process is generally quicker than in Germany.

What are the ongoing costs associated with owning a property in Croatia, and who handles the transfer of utility bills?

Ongoing costs include utilities like electricity, water, and waste disposal. The real estate agency or agent typically handles the transfer of these costs to the new owner.