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Legal Advice

How can foreigners invest into real estate in Croatia?
All foreigners from the EU can buy real estate in Croatia in the same way Croatian citizens can, except for farmlands and estates that are within national and nature parks and other estates under protection.
Purchased estate can be used, rented, sold, mortgaged, given away as a gift, further built, and everything with the authority of a real owner.
Before signing the contract, foreigners from the EU must obtain the OIB (tax number – registration for paying taxes, costs etc.) from the tax department, which can take from 3 to 15 days. Obtaining the OIB is mandatory before signing the main contract. When signing into the land register, one must submit a certificate from the town planning office which shows that the purchased estate is not in the agricultural zone or national or nature park.
For everything else, same laws are applicable as for Croatian citizens.

How can Russian citizens, who are not from the EU, purchase the real estate?
Russian citizens, like everyone else outside of the EU, can purchase an estate in Croatia based on reciprocity – the same procedure that applies for Croatian citizens purchasing a real estate in that foreign country. This is a standard procedure, it is either bought without any obstacles, or with the permission of a Croatian department, which can take around three months. Russian citizens need the permission that takes three months to obtain, and they can ask for it through a lawyer or notary public.

Can foreigners start a company in Croatia and go into real estate business?
Yes, foreigners have a right to start a company in Croatia and buy and sell real estate as well as build as Croatian citizens. Starting a company takes around 15 days, and costs around 1000 euros (7400 kuna). With the documents needed the cost will be around 2800 euros (20000 kuna), as a minimum initial investment. Documents can be prepared by a lawyer or notary public.

What is the yearly cost of maintaining a company?
Minimum yearly cost for a company in suspension is around 400 euros (3000 kuna). It is needed for account-keeping and minimum taxes involving the company.

How many estates do foreigners buy in Novigrad?
Based on our evaluation, foreigners buy around 80 % of all real estate offered for sale in Novigrad area.

Are the costs bigger for foreign real estate owners than for Croatian citizens?
No, the costs are completely the same, everything is charged the same (electricity, water, refuse etc.)

From which countries are the foreigners that buy estates in Novigrad?
Mostly they are from Italy, Slovenia, Austria, and sometimes from Germany, UK, Hungary, Slovakia, Czech Republic, etc. In a building with 8 apartments sometimes buyers of 5 different nationalities can be found.

What should be asked when visiting the agency for the first time?
You will be asked to deliver your personal information for the record and for concluding the contract on intercession. Personal information will be kept secret and are held for internal usage only. It is necessary to inform the agent on what kind of real estate you wish to purchase – house, apartment, land, etc., for what purposes you intend to use it for – business or private, how many persons will use it – how many beds and rooms you need, when it will be used – on weekends, summer only, winter and summer etc, whether you prefer ground floor or higher story apartments, closer or farther from the sea, closer to the city or outside of it, whether you are prepared to renovate if necessary or you specifically wish a new building, whether you need parking spots and a garden, and of course, the amount of money you are willing to spend.

What are the costs of purchasing a real estate?
All agencies offering real estate set a neto price (price without the extra costs). Costs on the price of an estate based on the contract are:
3.75% agency provision (3% provision with 25% PDV)
1-1.5% lawyer or notary for compiling a contract
around 20 euros in kunas for notary fees for attestation of signature
around 40 euros in kunas for registration of deeds in the land register on the municipal court
4% or around 0% taxes on transfer of estate (it is paid at once, in 15 days from the day of tax office resolution)
It all amounts to around 5% to 9% of the arranged price.

What are the costs of selling a real estate?
Costs amount to agency provision only, 3.75% (provision with 25% PDV)

Is there a tax involved in selling the estate?
Sellers do not have to pay taxes when selling, except when they bought and sold the estate for speculative reasons in the last 3 years, or more then three estates in the last 5 years. In that case, they must pay taxes on the cost difference. More information is available in Umag tax office (+385 52 379 100).

Are there costs involved if we do not buy but only see the estate through the agency?
Clients that sign the contract on mediation, see the estates, ask about prices, but do not find a satisfying estate from the agency's offer, do not have to pay the fee or provision, except if they try to purchase those estates later on by themselves or through some other agency.

Why are there different transfer taxes? For some estates it is 4% and for others 0%?
In Croatia, tax on transferin real estate is 4% of the contract value if that price is confirmed by the tax office (if the office believes that the cost is too big, it diminishes it by the average of like estates in the like areas). When buying new buildings where the seller is a Croatian company (tax payer), The buyer does not pay tax on the transfer because the VAT included in the price.

What is the ideal part of the real estate, written in the land register?
The ideal part (Section 37 of the ownership law and other real rights – Narodne novine 91/96) involves:
-when there is a co-ownership of an item it is considered that this item is legally divided into equal parts (ideal parts), and their size is determined by the size of co-owned parts
-the ideal part of an item is inseparable of the co-owned part which determines it
-legally, the ideal part of an item is independent. Everything that is determined for an item is applicable to the ideal part, unless specified differently.
-every co-owner is the owner of the ideal part of the item which corresponds to his co-owned part, and has all privileges like the owner, if he can execute them.
-the co-owner can legally manage his ideal part of the item independently. He has at his disposal his co-owner part according to the rules which apply to owner's legal management, if other person's rights are not meddled with. When the co-owner sells his part, other co-owners have no pre-emption, unless they have that right according to a specific legal foundation.

What is ownership by floors?
It is an ownership of separate parts of real estate which has at least two separate parts, and where exist joint parts which are inseparably connected to separate parts and the owners of separate parts are also co-owners of joint parts of the estate according to their separate part (the estate is divided into two or more parts based on the plans and the contract on division of ownership). On the plan separate parts of the estate are marked with different colors, and in the contract its parts are described, along with the names of the co-owners. A part can also be joint and for usage of all co-owners.

Does the buyer of the first real estate pay the transfer tax?
Croatian citizens are the only ones who do not pay taxes when buying their first real estate. They could be released from paying the transfer tax depending on the number of family members and the size of the estate, along with the certificate that they do not possess another estate. More information can be purchased in Umag tax office (052379100).

What is the usual buying procedure?
It is common that after the estate is examined and conditions of buying/selling are determined, the buyer pays the deposit to the seller as a guarantee, and pre-contract is formulated. It is usually not attested. According to the prearranged conditions, the main contract is closed and the seller sttest his signature at the notary public. The buyer signs the contract but does not attest his signature (except in specific cases). Attested contract is delivered to the land register in the municipal court in Buje for registration of the ownership. One copy is sent to Umag tax office for assessment of tax on the purchased real estate. The buyer keeps one copy, as does the seller, and one copy stays with the notary public. With the assessed contract the buyer can go through with the transfer of electricity and water meter at his name. Electricity distribution center for Novigrad and its surroundings is Elektroistra Buje (052527300), for water gage Vodovod Buzet, Buje bureau (052772339), for refuse removal "6.maj", Umag (052741585).
For transfering the meter (for water and electricity) one should have the meter status, a copy of the contract for buying/selling or one old receipt from the previous owner. For transfer to be complete this documents should be taken there in person because new contracts will be signed.
For utility charges it is enough to fax the contract to Novigrad (052758260). For refuse removal it is enough to fax the contract to "6.maj" Umag (052741557).

What is deposit receipt?
It is a document signed personally by the buyer and seller of the real estate, through which the seller confirms that he received the deposit, and guarantees that he will close the arranged contract in due time and alongside arranged conditions, and the buyer guarantees he will pay the remaining sum in due time. If the buyer decides not to buy, or does not pay in due time, he loses the deposit and has no right to ask for the money. If the seller decides not to sell, he must compensate the possible damage to the buyer and pay double deposit amount. But those cases are rare in practice.

How much is the deposit?
Deposit is the sum that buyer pays as a guarantee he will go forward with closing the contract. The usual sum is 10% of the entire estate's value, and sums over 10% are usually called advance-money. If one side decides to give up on the contract, the other side can ask for closing the contract or keep the deposit (if the buyer is at fault) or ask for double deposit (if the seller is at fault). Paid sum that exceeds the deposit is advance-money and it can be returned to the buyer if that was arranged or if both sides agree not to close the deal. The seller can keep the deposit but must return advance-money to the buyer.

What is pre-contract?
Pre-contract is a document which determines all relevant elements of buying/selling – names of the buyer and seller, the item which is being sold, the price, way of paying, taking possession, paying costs etc. When the pre-contract is assessed at the notary public, it is possible to enroll the estate in land register as a safety measure that the buyer will in the end be considered owner after signing the main contract.

What is buying/selling contract?
It is the main contract which has all the elements of buying/selling, along with the seller's statement that the buyer can be written down as owner in the land register. That statement is attested at the notary public and is considered as basis for tax assessment. It is the only ownership evidence if ownership is not written in land registers.

What is the way to pay the price agreed in the contract?
Deposit payment is usually done in cash when buyers or sellers are not companies. If companies are involved, payment goes through bank accounts. The price agreed in the contract is paid through the bank account and foreigners are obliged to pay this way.
It is usual that foreigners open a non-residential account in a bank in Novigrad. They send the money to the account from their country. When signing the main contract, the seller can open the account in the same bank so the transfer is done immediately and the buyer can receive the attested contract and be considered rightful owner.
If the money is sent from another country there is always few days of suspense until the confirmation that the estate is bought and paid for. That is why we reccomend the first procedure, as it is done in one day.
Also, we do not reccomend payment by instalments (unless sellers are affirmed building companies and building is underway) because it will lead to a long procedure in case of disagreements, and could end in court.

If you are the estate owner, do you pay taxes when selling?
The seller pays the tax if he sells the estate before three years expire since the date of purchasing it, or if he sells more than three estates in five years. You can get more information on this at the tax office.

Is there a guarantee for the estate's quality?
When the estate is purchased from the private owner, it is bought according to system of what you see is what you get (of course, the seller is held responsible for hiding faults of the estate). When buying from a company, the buyer gets a guarantee which can be of different length depending on the works, building construction, appliances, and all according to laws on building. The guarantee is given in person when buying from a construction company, or is transfered from the company to the invester and then to the end buyer. It is useful to have information on construction workers for possible complaints and/or minor works or renovations since they will do the best work.

When do you become owner of the estate?
In Croatia, the usual procedure requires giving the keys from the estate when the contract is signed, and the buyer is immediately the owner.

Who pays taxes for estate mobility?
Taxes are paid by the buyer, except if the buyer and the seller arranged differently. But if taxes aren't paid, the buyer risks his estate because tax office will request payment from him through distraint.

When is the mobility tax supposed to be paid?
In 1 to 2 months, depending on the number of items in tax office. Paid taxes is not necessary for estate to be entered into land register.

When do you pay the agency provision?
Provision is paid on the day of closing the contract, according to the agency's bill.

What are the costs of maintaining the purchased apartment?
For the average Novigrad apartment used in summer the costs are: around 30 euros for electricity, 10 euros for water, 5 euros for utility services, 5 euros for refuse removal, yearly taxes for weekend estates which are around 2 euros per meter square.

How to get OIB?
You can ask for it in Umag tax office if you have a copy of your passport.

How can you furnish your new bought apartment?
Almost all companies that deal with selling furniture (other than big shopping centers) deliver and set the bought furniture, usually with no extra costs.

Can the furniture be imported from abroad?
Yes, but it was proven useless since there is too small difference in pricing and it is hard to get good guarantees or standard link-ups.

How and where can I open the bank account for money transfer?
You can open a non-residential account in banks in Novigrad – IKB Novigrad, Laguna banka Novigrad, Erste & Steiermarkische Bank and some others with residencies in Porec or Umag.

Can foreigners get a loan in Croatian banks for purchasing a real estate?
Only Croatian citizens with jobs in Croatia can get loans. Everyone else needs to ask for the loan in countries they have incomes in. Many buyers mortgage their estates abroad and use that money to buy estates in Croatia.

How can I check if the documents are okay?
Beatum agency checks the estates before selling, but the buyer can entrust the notary public or the lawyer to do it (with 50-100 euro fee) when signing the pre-contract or the main contract. Ownership evidence in Croatia is the entry in land register which describes the estate, owner, mortgages etc. Unofficial documentation can be viewed on www.pravosudje.hr.

Can estates be purchased if documentation is faulty?
You should consult a lawyer or notary public before signing any such contract.

How long do you have to wait for entry in land register?
At Buje municipal court the entry takes from 5 to 10 days from the day the documents were received, but already the first day your entry will be prepared to be enrolled.

When is the documentation for the apartment okay?
When the property sheet clearly states floor ownership with the list of all apartment space, and with visible parking or garden notes. Necessary documentation involves a building permit, usage permit, permit on independent usable units, and a plan of floor units, all attested by the urbanism office. It is necessary to confirm whether apartments have all these documents because usage permit was not necessary until recently. Also, it can be visually checked whether the projects of apartment or a building are done according to plan.

What does it mean that the estate has good land and register documentation?
The estate must be written into land register under real name, contents and items. Seller-owner should have the same name and address as on personal documents. The estate should not be under mortgages which would diminish its value or limit the sale of transfer of ownership. The buyer should know every fact before purchasing in order to make his decision. Also, every document should be checked in order to find out the real state of ownership documentation.

What is the current state of prices and offers?
Prices were rising from 1990 to 2007 10% per year on average, but this growth was stopped and prices were dropping from 2008 to this day, 7% per year on average. In the last 6 months bigger demand was noticed which could lead to price stabilizing and new price growth.

Is it worth to invest in Novigrad estates?
When compared to like estates nearby (Slovenia, Italy), Novigrad estate prices are sometimes even 40% lower. EU membership will increase the prices even in Novigrad. Expected growth will be around 50% so this is the ideal time for investors to invest in real estate.

Which are the most attractive zones in Novigrad area?
Novigrad Centar, Rivarela and Karpinjan are the most attractive, since beach and town are close by, as are all stores, restaurants, coffee shops etc.

Do we need to pay sojourn tax if we own the apartment?
Sojourn tax is obligatory for everyone without a permanent residency in Novigrad. Tax is 1 euro per person during the season and 0,8 euros outside of season.

Are there many burglaries in Novigrad?
Novigrad is a very safe city, there are almost no burglaries or attempted robberies. Sensity doors are put only because of the habits of foreign buyers.

Who should we trust with protection of newly purchased estate?
Beatum agency deals with taking care of estates through a special contract, but there are also other companies which protect estates.

Is it worth to invest in buying items next to the sea?
That is a lifelong investment and its price can only grow because building near the sea is no longer allowed in Croatia.

What are the price differences when considering items next to the sea and those further away?
When considering Daila (tourist town 3 kilometers from Novigradwith little houses by the sea), price of a house next to the sea is 800000 euros, one further away is 450000 euros, and the one even more further away can be 250000-300000 euros.

What is the quality of an average new building apartment?
Outer walls are around 30 centimeters thick, made of brick, with 6 centimeter isolation space, which is also between floors (6 centimeter estrih), partition walls without isolation, rooms with wood floors, while other floors are made from 15 euro tiles, sensity doors, PVC outside furniture, 200 euros inner doors, bathroom, 220 V electricity, 5.5 kW power, SAT, parking space.

What is the quality of apartment for renovating in the center in old stone house?
Old stone houses in Novigrad are built with 60 centimeter walls (2 rows of stone and dirt between them), floors and ceilings are wooden, installations should usually be replaced. Grounds usually do not have hydroisolation, nor do roofs. Renovation is possible, demanding, but gives great results.

Where can we get information on building zones and conditions?
For Novigrad area you can get them in Novigrad (Veliki trg, office for urbanism, 052757055).

How can we be sure that the land is fit for building?
Correct answer for this question can be purchased in office for urbanism with a request for excerpt from plan documentation. If you do not understand the plan, take it to the nearest architect who will read it out to you.

What do land marks such as urbanised, building, under plan, building possible etc.mean?
Sellers often use terms such as abovementioned. You can get real information from the plan for intended item, and you will know exactly if the building is or will be possible.

How can you check the building that is underway?
You should check it through a licensed architect who will compare documentation with the work done so far.

How much are utility service, water, architect and other costs necessary for getting a building permit in Novigrad for smaller houses?
Utility service cost for smaller objects in Novigrad zone is around 110 kuna per m3, water is around 31.5 kn/m3, project documentation around 18 euros (in kuna) and other fees are around 100 euros (in kuna).

What are the costs and fees for electricity, water and sewers for the new house?
Costs include connection fees and a material cost of connecting. For water this is 7000 kuna plus 600 kuna per meter, for electricity 1250 kuna plus PDV/kW, minimum 5.5 kW for smaller object plus material costs, meters, atest etc. Sewers is around 6500 kuna per apartment.

What is the cost of building a smaller ground floor house?
Depending on the project and inner elements cost is around 750 to 900 euros plus taxes and surroundings which can be around 3000 and 20000 euros, depending on size and arrangement.

Where can ownership documents be checked in Novigrad?
At Buje municipal court, Istarska 1, 52460 Buje (052725230, office for land registers), working hours: Mon-Wed-Fri 8.30-11.30, for legal persons Tue-Thu 10-11.

How can we find out where is the land we inherited?
That is the job for certified geodesists, and also you can get that information from the land registry office in Buje, Nikola Tesla 2 (052772413), working hours: Mon to Fri 8-13, and they can give you the exacz copy of the plan with your land.

How can I enlist as the owner of an inherited estate?
Ownership is enlisted into land registry at Buje court along with the request and payment slip for 250 kuna and inheritance documents. If you are a foreigner and documents are abroad, they must be translated to Croatian at the certified court translator.

What is the procedure when a Croatian citizen buys an estate with the bank loan?
Croatian buyer must first check what are his bank's conditions and how much money can he loan. All sorts of costs must be taken into consideration before the pre-contract is signed. When he decides to buy, pre-contract with the seller is signed, which should have a part about paying the full price in two months minimum. After all documents are collected, the bank sends someone to evaluate the apartment. Then they send all documentation to loan department which then decides about the loan. Two contracts are prepared, one on the loan and other on mortgage, and both the seller and the buyer attest their signatures. At the same time the buying/selling contract is signed and the mortgage contract is given to the court. The bank pays the money to the seller's account after everything has been settled. When the money is received, the selles attests that he received it and the buyer can be enlisted as owner.

How to buy an estate which is mortgaged?
The buyer should first check the debt at the bank. Then the price is settled with the seller so that the debt is paid directly to the bank and the rest (if there is) to the seller's account. When the bank receives the money, it removes the mortgage from the land register. It can be up to 10 days for this procedure, so it is important to let the bank know beforehand, so the procedure can be prepared and it will be faster.

How to pay bills for water, electricity, tax, utility services and other?
-same procedure applies for "6.maj dd" Umag as does for "Vodovod dd" Buzet
From Aug 1 2010 bills cannot be paid in Elektroistra anymore, since customer windows are removed.
We advise paying with standing order:
Through e-banking (you need information that are on your payment slips)
In FINA (no fee charged)
In Hrvatska Posta (no fee for household charges)

You can pay with standing order in Erste & Steiermarkische Bank, and through Diners or American Express.
If you enlist it by 15th of the month, it applies for next month also.
Standing order through bank
Contracting with banks depends on the number of interested customers. There are two ways for standing order through bank:
The buyer gives a form to the bank where it is stated that all documentation is sent to bank address instead to buyer's. Bank then does the payments according to the date of MNO subscribing rates.
The buyer signs the contract on standing order with the bank and the bank delivers the number to Elektroistra. The buyer receives the expense report to his address.
Standing order through Diners or American Express
Standing order is applicable in the moment of signing the contract with Diners or American Express, when buyer must give one original payment slip from Elektroistra.
The buyer receives the expense report and deposits to his home address and he pays nothing after the contract is signed, these deposits are for control purposes only.
Contacts
6.MAJ d.o.o. for utility services - UMAG
6.MAJ s.r.l. servizi comunali - UMAGO

Tribje 2, 
52470 UMAG - UMAGO

Tel (central) :00385 (0)52 741-585, 741-350, 743-397, 742-099
Fax: 00385 (0)52 741 - 557, 
E-mail: info@6maj.hr


For legal business dial 104
For refuse removal dial 105
For refuse waters dial 106
For cash desk dial 108
For cutomer office dial 118
For funeral services dial 653 112

Working hours 7-15 (Mon-Fri)

MON TUE WED THU FRI 
Account keepin 07:00 - 10:00
11:00 - 14:00 07:00 - 10:00
11:00 - 14:00 07:00 - 10:00
11:00 - 14:00 
Cash desk 07:00 - 10:00
11:00 - 14:00 07:00 - 10:00
11:00 - 14:00 07:00 - 10:00
11:00 - 14:00 07:00 - 10:00
11:00 - 14:00 07:00 - 10:00
11:00 - 14:00 
Sewers 08:00 - 10:00 08:00 - 10:00 08:00 - 10:00 
Funeral services 07:00 - 10:00
11:00 - 14:00 07:00 - 10:00
11:00 - 14:00 07:00 - 10:00
11:00 - 14:00 



WATERWORK BUZET OFFICE BUJE

Buje business unit
Vodovodna 26
52460 Buje
Tel: 052 / 772 - 339
Every work day from 08 to 14

ELEKTROISTRA BUJE

Buje Momjanska 1, 52460 Buje 052/527-300 
Working hours
Outside Pula, working hours are every work day 7.30-14
*for receiving connection demands, issuing electroenergetic affirmations, connection contracts, changes on existing connections: Mon, Wed, Thu and Fri 7.30-11 and 12-14, Tue 7.30-11 and 12-17
*window for information, complaints, expense reports, reporting faults on meters... Mon, Wed, Thu, Fri 7.30-14, Tue 7.30-17
*window for new buyers, signing contracts... Mon-fri 7.30-11, or to 14 if agreed

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© BEATUM D.O.O.
All Rights Reserved.
Novigrad

We are a real estate agency who has run its business successfuly for more than 10 years. The area we cover is Novigrad and its wider surroundings. Novigrad is a small place so we are acquainted with each house and its owner personally. We can guarantee you legal as well as building quality. We run our business the same way as other agencies - we mediate the existing offer and give special importance to the system of searching real estates in accordance with requirements of the buyers.

Beatum d.o.o. Gradska Vrata 32, 52466 Novigrad / T/F: + 385 052 758 170 / M: + 385 091 201 7329 / E-mail: info@beatum.hr

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