There’s a coastal resort in Dubrovnik that sells fully-equipped modern homes that can be purchased on a freehold basis. This means owners of these properties can both live in and rent them. A recent unfinished house with six apartments and three large garages and view of the sea listed for under $300,000. Deals like this abound.
The Old Town area of Dubrovnik and even Zagreb have a reserve of dramatic renovated historic properties available. Think apartments in palaces with original stone walls and vast high ceilings. Properties that need restoration work go for substantially less than those that have already had new fixtures and modernist touches applied.
Property Investment Opportunities in Croatia
A recent four-bedroom home overlooking the forest in the Slano part of Dubrovnik had an asking price of $260,000.
Low-cost investments in Croatia can be found throughout the country. It’s important to note again when considering costs, however, that properties are sold and bought using the euro, not Croatian currency.
But this doesn’t diminish the potential to profit from investing.
Prices are usually quoted in euros, but the dollar and Euro tend to stay close in value. This way it’s easy to gauge the going cost of properties when browsing national real estate sites.
Dubrovnik does have the most high-priced real estate in the country. It’s good to keep in mind that it’s a city of cafes, universities, and students as well as retirees and executives. If you’re going to invest in Croatia, it’s sound thinking to buy property here since it’s such a popular place to live, work, and enjoy nightlife.
How to Invest in Croatia
Prior to February 2009, A foreign real estate investor had to establish a local company to be able to make a property investment in Croatia. Many still recommend this route, though it’s no longer necessary. Creating a company only takes about two weeks, if this is your preferred route or the one recommended by your real estate agent.
The investing process (which will include signing a contract, getting it approved by the government and paying a ten percent down payment), can proceed without a pause while waiting for your company to receive the legal permission it needs to operate. The cost of hiring a lawyer to handle the paperwork and help you navigate laws and requirements would be about 1 percent of the price of the home you’re buying. The US Embassy in Zagreb may provide you with a list of area lawyers who help Americans buy property. They may also provide useful material on how to invest in Croatia.
It’s a must that you are sure who the legal owner of the property is before going ahead with any of the steps already mentioned. Go to the local land title office in the area where the property you’re interested locates. Then, confirm that the sellers you’re negotiating with are the rightful owners. Property registers in Croatia, so you can also acquire proof of ownership at government registry offices. There’s no such thing as being too detailed during the investment process. Your real estate agent will charge you a commission from 3 to 6 percent of what you pay.
A small country with cathedrals and Adriatic vistas, Croatia couldn’t be overlooked as a real estate investor’s fantasy forever. Foreign investment in Croatia involves navigating a bureaucracy that’s unfamiliar. Identifying a reliable network of advisors to assist in the investment process is key.