Buying Guide

Short Guide to buying property in Croatia.Real Estate Dubrovnik – SPES is the leading real estate agency in Dubrovnik Region. We have an extensive portfolio of  properties on offer to suit everyone needs ranging from the most exclusive villas in Dubrovnik and its surroundings to leisure holiday homes and apartments not forgetting residential flats.

Our professional property consultants will offer you the hottest property available to suit your needs. We are the first in Dubrovnik and its surrounding region who people approach with their properties to sell. This is largely due to the fact that local people trust us and our managing director     Mr. Frano Bezic who is regarded as Dubrovnik’s top real estate agent.
We work closely with the local building companies so for instance if you are looking to refurbish your newly bought house, look no further, we are here to help. We also manage the lettings of holiday homes and apartments.

Property Search

After initial complimentary consultation we would come up with the list of properties, matching your requirements, saving you valuable time and money. We always aim to get you the maximum value for your money and would advise you to purchase a property that would have a high ROI percentage.

Purchase Process

When you have opted out for your desirable property we will take you step by step towards the completiton of your purchase. Under your advice we will negotiate the best possible price with the seller. We will recommend you a team of lawerys but equally you can choose your own.
The most important aspect of property or land purchase in Croatia is the so called clean title, the seller’s right to sell the property and written statement that there are no pending claims on the property before the courts.
Why the need to check the titles?
The property administration in Croatia has lacked an effective system of tracking the property. This was the case during the communism as many people would fail to register the sale of the house or plot of land to avoid paying the taxes. Over the communist years of reign, many properties and land plots were confiscated from their original owners. Now, the rightful owners submitted their claims to theirproperties and land. Another issue of the clean title is the inheritace. If sibblings have inherited an equal share in a house or over a piece of land the very same can be sold on only after you have collected their signatures that they have all agreed for the sale to proceed

Private or Corporate Route

There are two aspects one has to bear in mind while opting out for private route. Some properties which are situated within ancient settlements, like within Dubrovni City Walls or Split ancient town are probably cultural monuments or listed buildings. For sale to proceed these properties are offered to local authorites who have a right to buy, only after they have declined not to purchase ( happens in 90% of cases, they have a legal time period of 60 days to consult whether or not to buy ), If a buyer has put down a deposit of 10 % his or her lawyer will proceed to protect this deposit)

Second aspect one has to bear in mind is the fact price gazumping could happen, especially when the desired property is concerned. Sellers are in these cases are prepared to break the contract and pay the penalites. We advise our clients to pay in advance if possible to secure their dream properties.
For off plan properties the usual practice of paying 10% of the property value upon signing the constract followed by three installements.
It was worth mentioning that EU citizens have equal rights like Croatian citizensin , citizens who are not EU-members have right to purchase a given property as a privat e person providing that there is a reciprocity agreement signed between the two states in question and they are obliged to get a permission from the Ministry of Justice.
The corporate or ltd route enables citizens of those countries who do not have reciprocity agreement signed with Croatia to acquire their desired property. We are at your disposal to help you along the way of setting up a limited company.

Completion a purchase

We at Real Estate Dubrovnik- SPES will negotiate the best possible price, working with our clients and we will reserve the property verbally
Lawyer will draw a prer—contract between vendor and seller
We will help you to set up a bank account with net banking
The contract is then signed in presence of a public notary, if the buyer is not present , he can sign a contract in his native country, stamped by the public notary.
The documents are then submitted to local land registry office

Taxes and SPES fees

Real estate transfer tax is 5% of the price agreed in the contract. Only if the local tax office raises some doubts about the worthiness of the property related to its price, independent property evaluator is called in and 5 % of the RETT tax is charged on the price of its estimation. As for the offplans and new buildings the REETT scheme differs in a way that for the extra value ( building itself ) VAT is charged and the accrued value is a subject to RETT 5% tax.

SPES commissions and fees

For sale and purchase agreements SPES will take a commission in a percentage of the agreed price. The highest commission to be taken is a total of 6% + VAT

For sales agreements SPES will take a commission from a seller in a percentage ranging from 1 to 3% + VAT or a minimum of HRK 6,000 in a real estate fee.

For purchase agreements SPES will take a commission from a seller in a percentage ranging from 1 to 3% + VAT or a minimum of HRK 6,000 in a real estate fee.
Commission is paid out at the moment when the amount of the sale and purchase agreement is paid into the SPES account.
For exchange agreements SPES will take a commission from both parties, it is calculated from the estimated value of the property that is to say the buyer’s price in a percentage ranging from 1 to 3% + VAT or a minimum of HRK 6,000 in a real estate fee.
Legal fee is 1.5% of the purchase price + VAT plus and this is not calculated into therepresentative commission.
Public notary expenses and court taxes are beared by the buyer.