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DOES BUYING PROPERTY GIVE YOU RESIDENCY IN CROATIA?

The idea that buying property in Croatia automatically grants residency is one of the most common misconceptions among foreign investors. While Croatia is an increasingly attractive destination for both lifestyle and investment purposes, its immigration system is clearly structured and does not link property ownership with residence rights. Understanding this distinction is essential before making any investment decision.

BUYING PROPERTY IN CROATIA LEGAL CHECKLIST BEFORE YOU SIGN A PURCHASE AGREEMENT

Buying property in Croatia can be an excellent investment or lifestyle decision, but the legal review before signing is what determines whether the transaction will be secure or problematic. In Croatia, ownership is not acquired merely by signing the purchase agreement. As a rule, ownership is acquired only by registration in the land register, which makes prior legal due diligence essential.

REAL ESTATE TRANSFER TAX IN CROATIA

Real estate transfer tax is one of the key tax institutes applicable to the acquisition of ownership of real estate in the Republic of Croatia. Although in practice it is often associated exclusively with the purchase and sale of apartments, houses, or land, the current Real Estate Transfer Tax Act (Official Gazette Nos. 115/16, 106/18; hereinafter: the “Act”) regulates this concept much more broadly and subjects various forms of real estate acquisition to taxation. In order to properly understand the tax liability, it is necessary to determine what is considered a transfer of real estate, who is the taxpayer, when the tax liability arises, how the tax base is determined, and in which cases the Act prescribes an exemption from tax payment.

B – Basis of legal residence in Croatia

The legal framework governing entry, residence and employment of foreign nationals in Croatia is regulated primarily by the Aliens Act, the Act on Nationals of EEA Member States and Their Family Members (Official Gazette No. 66/19, 53/20, 144/20, 114/22), as well as implementing regulations adopted pursuant to these laws. The applicable regime depends primarily on whether the individual is an EU/EEA national or a third-country national. In this article, the focus will be on the various legal grounds for residence available to third-country nationals, outlining all lawful pathways through which they may regulate their stay in the Republic of Croatia.

A – The Aliens act explained

The Aliens Act is the primary legislative framework governing the conditions of entry, stay, employment, and legal status of third-country nationals in the Republic of Croatia and represents one of the key statutes in the field of migration law

KEY AMENDMENTS TO THE PUBLIC PROCUREMENT ACT IN THE REPUBLIC OF CROATIA ACCORDING TO THE DRAFT PROPOSAL OF THE MINISTRY OF ECONOMY

The current regulatory framework governing public procurement in the Republic of Croatia consists of the Public Procurement Act (Official Gazette No. 120/2016), applicable since 1 January 2017, and the Act on Amendments to the Public Procurement Act (Official Gazette No. 114/2022), in force since 11 October 2022. This legislative framework represents the fundamental system of rules regulating public procurement procedures conducted by public and sector contracting authorities, with the aim of concluding contracts for the procurement of goods, works and services, framework agreements, and the implementation of design contests, while ensuring effective legal protection for participants in such procedures.