 One of the more important decisions Croatia made in the process of approaching the European Union was the complete liberalization of real estate transactions and providing the exact same purchasing conditions for Croatian citizens and citizens of the European Union. Until recently, buyers had to go through a procedure that included the Ministry of Foreign Affairs to obtain the necessary certificates. That procedure has now been dissolved and foreigners can purchase Croatian real estates without any hesitation. Liberalization is valid for citizens of the European Union, while other foreign citizens must go through the exact same procedure again. This step fulfils the promise Croatia gave to Brussels back in 2001. At the time, there were many fierce discussions regarding that decision in Croatia, but it has eventually been proved that there is no fear from excessive selling of Croatian real estate or even the entire Adriatic.
Anyway, the previous complicated procedure has been avoided by foreigners, just like any other administrative obstacle, by starting a company in Croatia or formally purchasing for a Croatian citizen. As it turned out, liberalization is the best solution. These days, all the discussions and tensions regarding liberalization are gone. The worldwide crisis is bound to slow down the strong wave of interest, but everyone interested in purchasing a real estate in Croatia will have
a clear path, without any administrative obstacles.
Citizens and legal entities from the European Union as receivers of ownership rights of real estates in the Republic Of Croatia according to Amendments to the Law on Ownership and Other Real Properties In Paragraph 60 Item 2 of the Stabilization and ssociation Agreement between the Republic of Croatia and the European Union, the Republic of Croatia has committed to, within the course of four years since it became valid, allow the citizens of countries of the European Union to receive ownership rights over real estates in the Republic of Croatia under the exact same conditions as domestic citizens, with the exception of agricultural land and protected parts of nature (Annex VII of the Agreement).
Due to this commitment, the Amendments to the Law on Ownership and Other Real Properties were created, and they became valid on February 1st 2009. Novella ZV equals citizens and legal entities from the European Union to domestic citizens regarding ownership rights over real estates. As far as movable properties are concerned, as well as the receiving of limited real properties, there were never any different conditions for domestic and foreign citizens.
Even after the Novella ZF became valid, other foreign entities, which are not citizens or legal entities from the European Union, still have to follow special conditions for receiving ownership rights over real estates in the Republic of Croatia, and those conditions are determined in the Law on Ownership and Other Real Properties (paragraphs 354-358).
Obtaining Based on Legal Activities Since February 1st 2009, citizens and legal entities from the European Union can purchase real estates in the Republic of Croatia with legal activities, under the same conditions as domestic citizens. They no longer have to fulfil special conditions that were determined by Paragraph 36 Item 2 of ZV. Physical and legal entities from the European Union have, according to Paragraph 358 of ZV, now been put in equal position with domestic citizens, except when it comes to ownership over agricultural properties and protected parts of nature. However, as far as foreign entities from countries outside the European Union, they still have to fulfil two special conditions to obtain ownership over real estates based on legal activities.
According to Paragraph 356 Item 2 of ZV, those conditions are reciprocity and consent from the minister of justice. If that consent doesn’t exist, the legal activity is not valid. Furthermore, Paragraph 6 of Novella ZV states that there is a special rule regarding the convalidation of agreements on purchasing real estates in the Republic of Croatia for citizens and legal entities from the European Union that were concluded before Novella ZV became valid, under the condition that they were concluded in agreement with primary rules of agreement validity. These agreements were not valid prior to the conclusion of Novella ZV because there was no necessary consent from the minister of justice for the purchasing of real estates based on legal activities. The rule f convalidation also has the reverse effect, as it strengthens the respective contracts with the ex tunc effect.
Any procedures that had the purpose of obtaining the consent from the ministry of justice for citizens or legal entities from the European Union, which were not finalized by the time Novella ZV became valid, will be officially withdrawn (Paragraph 5 of Novella ZV).
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Croatia Real Estate Market 
