Croatian Government to Remove Restrictions on European Buyers

OPP has learnt that the Croatian government is removing all of its restrictions on citizens from the European Union buying property in the country as of February 1, 2009. As Croatia works towards joining the EU, perhaps as early as next year, its government is hurriedly introducing new legislation to harmonise its processes with that of the 27-strong nation bloc.

According to Article 60 of the Stabilisation Agreement with the European Community, Croatia “shall progressively adjust its legislation concerning the acquisition of real estate in Croatia by nationals of the member states of the European Union to ensure the same treatment as compared to Croatian nationals”, according to information provided by the International Law Partnership. Although numerous, currently, only nationals of countries holding reciprocity agreements with Croatia regarding property ownership are allowed to acquire residential real estate in the country. Once purchased, the buyer then has to form a company and register this with the land department – a process that can take over a year to complete.

As of February 1, 2009, buyers from EU member stated will have the same right to purchase property as Croatian nationals, with the exception of certain agricultural holdings and environmentally protected land.

Despite the February date for next year, property professionals talking to OPP explained that the Croatian government is already streamlining some aspects of the process and agents should make buyers aware of this to avoid a situation where potential investors hold-off until the legislation is enforced.