Croatia
Answer ... The following laws and common documents govern real estate market in Croatia:
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the Act on Expropriation and Determination of Compensation (Official Gazette 74/14, 69/17, 98/19) (www.zakon.hr/z/726/Zakon-o-izvla%C5%A1tenju-i-odre%C4%91ivanju-naknade);
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the Environmental Protection Act (Official Gazette 80/13, 153/13, 78/15, 12/18, 118/18) (www.zakon.hr/z/194/Zakon-o-za%C5%A1titi-okoli%C5%A1a);
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the Law on Ownership and Other Property Rights (Official Gazette 91/96, 68/98, 137/99, 22/00, 73/00, 129/00, 114/01, 79/06, 141/06, 146 / 08, 38/09, 153/09, 143/12, 152/14) (www.zakon.hr/z/241/Zakon-o-vlasni%C5%A1tvu-i-drugim-stvarnim-pravima);
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the Inheritance Act (Official Gazette 48/03, 163/03, 35/05, 127/13, 33/15, 14/19) (www.zakon.hr/z/87/Zakon-o-naslje%C4%91ivanju);
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the Law on Agricultural Land (Official Gazette 20/18, 115/18, 98/19) (www.zakon.hr/z/133/Zakon-o-poljoprivrednom-zemlji%C5%A1tu);
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the Law on Forests (Official Gazette 68/18, 115/18, 98/19, 32/20, 145/20) (www.zakon.hr/z/294/Zakon-o-%C5%A1umama);
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the Real Estate Transfer Tax Act (Official Gazette 115/2016, 106/2018) (https://odvjetnistvo-ljubic.com/real-estate-transfer-tax-act-of-republic-of-croatia);
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the Law on Value Added Tax (Official Gazette 73/2013, 99/2013, 148/2013, 153/2013, 143/2014, 115/2016, 106/2018, 121/2019, 138/2020) (www.porezna-uprava.hr/HR_porezni_sustav/_layouts/15/in2.vuk2019.sp.propisi.intranet/propisi.aspx#id=pro1467);
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the Income Tax Act (Official Gazette 15/16, 106/18, 121/19, 32/20, 138/20) (www.porezna-uprava.hr/en_propisi/_layouts/15/in2.vuk2019.sp.propisi.intranet/propisi.aspx#id=pro135);
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the Local Taxes Act (Official Gazette 115/16, 101/17) (www.porezna-uprava.hr/hr_propisi/_layouts/15/in2.vuk2019.sp.propisi.intranet/propisi.aspx#id=pro1621);
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the Information on the Reciprocity Rule for the Acquisition of Real Estate in Croatia (https://odvjetnistvo-ljubic.com/reciprocity-in-the-acquisition-of-real-estate-ownership-rights-between-the-republic-of-croatia-and-other-countries);
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the Lease and Sale of Business Premises Act (Official Gazette 125/11, 64/15, 112/18) (www.zakon.hr/z/513/Zakon-o-zakupu-i-kupoprodaji-poslovnog-prostora);
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the Rulebook on Energy Inspections of Buildings and Energy Certification (Official Gazette 88/2017) (https://narodne-novine.nn.hr/clanci/sluzbeni/2017_09_88_2093.html); and
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the Construction Act (Official Gazette 153/13, 20/17, 39/19, 125/19) (www.zakon.hr/z/690/Zakon-o-gradnji).
Croatia
Answer ... Until recently, two special regimes were into force, as follows.
Restrictions on agricultural land: Agricultural land is classified as a good of special interest to the state and, as such, is categorised as protected property. Article 2, paragraph 2 of the Agricultural Land Act provides that foreign legal and natural persons cannot acquire a right of ownership on agricultural land.
As exceptions to this general rule, foreign legal and natural persons can acquire agricultural land:
- through inheritance;
- under international agreements; and
- according to special regulations.
However, the restrictions that applied to foreign legal and natural persons from member states of the European Union and the European Economic Area (Iceland, Liechtenstein and Norway) were lifted as of 1 July 2023.
Restrictions on forests and forest land: One of the restrictions on the acquisition of real estate ownership relates to forests and forest lands. Article 56, paragraph 2 of the Forest Act stipulates that foreign legal and natural persons may not acquire ownership of forests and forest land, unless otherwise provided by an international agreement. This restriction applies only to foreign legal and natural persons that are not resident in an EU member state. Thus, foreign legal and natural persons from EU member states can acquire ownership of forests and forest land without restrictions.