| Finding and buying a property in Croatia, for | | | | the Land Registrar is about 400 kuna |
| anyone who does not speak the language fluently, | | | | (approximately 38 pounds). Check with your |
| and without the services of an estate agent, | | | | lawyer whether this has been included in his or |
| would be almost impossible. These days, Croatian | | | | her fee. Property transfer tax is currently set at |
| agents are perfectly accustomed to being called | | | | 5 per cent. This is paid by the buyer. Once the |
| on their mobiles, so if they are not in, its more | | | | transaction has been completed, the change of |
| than likely that they will have left a message with | | | | ownership should be registered within 30 days. |
| the number on their office or shop door. | | | | The tax can be paid by money transfer, and is |
| As in all property transactions, the purchaser | | | | then changed into kuna. |
| must use the services of a lawyer who acts | | | | VAT (PDV in Croatia) is currently 22 per cent and |
| solely for him. It is also essential that the lawyer | | | | payable only on the value of a newly constructed |
| should speak both Croat and English fluently. | | | | building or a resale for which the VAT was |
| It is important for the lawyer to check that the | | | | already paid, if disposed of by a business VAT |
| propertys title is clean. Because Croatian families | | | | payer. It is also charged on the services provided |
| used always to hand properties down from father | | | | by both estate agents and legal advisers. |
| to son for several generations, in some cases the | | | | Mortgages |
| paperwork is either incorrect or non-existent. | | | | At present, the situation relating to mortgages on |
| Getting a survey done is somewhat unusual in | | | | Croatian property is changing, with some |
| Croatia, but it can be arranged through surveyors | | | | UK-based companies now able to offer them. The |
| located in the bigger towns. | | | | main criterion appears to be that the potential |
| In the case of a foreign national buying as a | | | | purchaser must set up a company that is |
| private individual, permission to purchase must be | | | | registered in Croatia. |
| sought from the Ministry of Foreign Affairs. If a | | | | Of course, for UK buyers who already have a |
| foreign national has registered a company in | | | | mortgage, it is perfectly possible to add to it. This |
| Croatia and is buying through that company, | | | | will be linked to UK rates, which differ from |
| permission is not necessary. | | | | overseas ones. |
| The stages of the purchase include: | | | | Overseas mortgages generally attract higher |
| 1.)The reservation contract | | | | set-up costs, typically around 3 per cent. Following |
| 2.)The preliminary contract. This will include the | | | | this route will not add an additional burden to an |
| payment of a deposit, usually of between 5 and | | | | existing UK mortgage. It is essential to note, |
| 10 per cent of the purchase price. It is usual for | | | | however, that there is an exchange risk attached |
| the contract to include a clause stating that should | | | | to basing repayments on a foreign mortgage |
| the vendor withdraw the property from sale, he | | | | from UK income. It is also essential to ensure that |
| must pay an equivalent sum to the purchaser | | | | the overseas mortgage documentation complies |
| 3.)The certifying of the contract by a notary | | | | with both local and UK law. Above all, it is |
| 4.)The submission of the documents to the Land | | | | important, as in all overseas property |
| Registry for the recording of the legal title | | | | transactions, to take professional advice. |
| 5.)The payment of Real Estate Purchase Tax and | | | | Euro mortgages |
| or VAT (known as PDV in Croatia) | | | | Many lenders have been inundated with enquiries |
| Costs | | | | from people seeking a mortgage to buy property |
| Estate agents charge between 2.5 and 3 per cent | | | | in Croatia, and some are now offering mortgages |
| of the propertys sale price.Lawyers will charge | | | | averaging 60 per cent based in euros. Generally, |
| around 1.5 per cent. This will usually include the | | | | these are linked to terms of 15 years and provide |
| Land Registry search and the preparation of the | | | | for completion at a maximum age of 65. |
| purchase contract. Permission from the Ministry of | | | | Agricultural land is not eligible for a mortgage. |
| Foreign Affairs for a foreign national to acquire | | | | Its worth noting that the mortgage will most likely |
| property costs around 70 kuna (approximately | | | | be only for the purchase of the property. Any |
| 6.50 pounds).The notarys fee and that of the | | | | additional costs or overheads, such as notarys |
| translator (officially required) total approximately | | | | fees, agents commission or completion fees, will |
| 500 kuna (around 50 pounds).The fee charged by | | | | have to be met by the buyer separately. |