January 01, 2024

The process of buying and selling real estate in the Republic of Croatia

The purchase and sale of real estate in the Republic of Croatia is regulated by the Law on Obligations, the Law on Ownership and Other Real Rights and the Law on Land Registry. Buying and selling real estate involves several important steps, from finding and verifying real estate, through contracting, to formal transfer of ownership rights and registration in the land registry.

The main elements and steps

Verification of the title deed: Before deciding to buy a property, it is necessary to check the situation in the land registry in order to determine the legal status of the property (ownership, charges, rights of third parties). In addition to an overview of the legal condition of the property, it is necessary to check in detail the actual condition of the non-rentine and any existing defects.

Pre-contract: If the non-rent cannot be purchased immediately (e.g. a loan must be obtained, or a mortgage must be erased), a pre-contract is often concluded that defines the basic conditions of future purchase and assumes the obligation to conclude the main purchase agreement. The pre-contract should be certified by a notary public, and the recommendation is to hire a real estate lawyer to draft the pre-contract.

Down payment: Down payment is insurance against non-fulfillment or withdrawal from concluding a contract. The basic rule in practice is that if the buyer withdraws from the contract, he loses the down payment, and if the seller withdraws, he is obliged to pay the buyer a double down payment. As a rule, it is recommended to contract a down payment in the amount of between 5 and 10% of the agreed price of the property.

Drafting the main contract: The contract on the sale of real estate should be in writing and certified by a notary public. The contract must include all the essential ingredients, agreements and the process of buying and selling, such as an accurate description of the property, price, payment deadline, handing over, regulating possible mortgages and loans, the condition of the property at the time of takeover and the like. It is recommended that a real estate lawyer be hired to draw up a real estate attorney to draw up a real estate contract.

Taxes: If the property is not in the VAT system, which are usually only newly built real estate or real estate that were used exclusively for business purposes, then real estate transfer tax is paid. Real estate transfer tax is paid by the buyer. Real estate transfer tax in 2024 is 3% of the value of the property. The value of the property is determined by the tax administration regardless of the indicated price on the purchase agreement. The notary will deliver the contract on purchase ex officio to the Tax Administration, which will then deliver the tax decision to the buyer.

Transfer of ownership: As a rule, after the conclusion of the contract, the buyer pays the agreed purchase price, after which the seller issues a tabular document on the basis of which a proposal for registration of ownership rights will be submitted to the land registry court.

Tabular document in the process of buying and selling real estate

A tabular document is a key document in the legal transaction of real estate in the Republic of Croatia. With this document, which may be issued as a separate document or as a clause in the purchase agreement, the seller gives his unconditional consent to transfer the right of ownership to the buyer. It is extremely dangerous and it is not recommended to issue a tabular document before the seller fully receives the total purchase price.

The safest way to conduct the purchase and sale of real estate in Croatia is through a deposit or deposit. This is done in such a way that the buyer, on the one hand, deposits money in a special account, while the seller, on the other hand, deposits a tabular document. The deposit is often made through a notary public, and it is also possible with a lawyer. After the buyer is registered in the land register as the owner, money is transferred to the seller from the deposit. If for some reason there would be no registration of ownership rights, the money is returned to the buyer and the transaction is canceled.

Registration in the land register: Possession of a valid tabular document is a prerequisite for applying for the registration of changes in the land register. Registration in the land register is crucial for the acquisition of ownership rights and for the legal certainty of the transaction.

Buying and selling real estate has a lot of details to look out for, so it is always recommended to hire a real estate lawyer, or professional legal advice. For real estate purchase and sale questions feel free to contact us at:


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