Knowledge of the Croatian language and Latin script, as well as Croatian culture and social system, is one of the general conditions for acquiring Croatian citizenship by naturalization. This condition is laid down in the Croatian Citizenship Act (Official Gazette Nos. 53/91, 70/91, 28/92, 113/93, 4/94, 130/11, 110/15, 102/19, 138/21; hereinafter: the Act). The method of proving the Ordinance governs the Method of Testing Knowledge of the Croatian Language and Latin Script, Croatian Culture and Social System in Croatian Citizenship Proceedings (Official Gazette No. 6/2021; hereinafter: the Ordinance). The Minister of the Interior adopted the Ordinance on 18 January 2021, with the consent of the heads of the state administration bodies responsible for science, education, culture and sport. It entered into force on the eighth day after its publication, having been published on 22 January 2021.

Croatia has no citizenship-by-investment program. No sum of money, property purchase, or company formation entitles a foreign investor to a Croatian passport. Online articles, often produced to attract clients, nevertheless claim otherwise. They describe a "program launched in 2019" or a minimum investment of EUR 200,000 in a company with at least ten employees, or they speak of a "golden passport" and list all sorts of conditions for obtaining one. Unfortunately, many of our clients come to us wishing to apply for Croatian citizenship based on such an investment, relying on this incorrect information. This is precisely why we have prepared this expert legal article: to dispel the myth and provide accurate information on the subject.

Acquisition of Croatian citizenship on the basis of belonging to the Croatian nation is one of the legal grounds for obtaining Croatian citizenship by naturalization, governed by Article 16 of the Croatian Citizenship Act (Official Gazette nos. 53/91, 70/91, 28/92, 113/93, 4/94, 130/11, 110/15, 102/19, 138/21; hereinafter: CCA).

The amendments to the Croatian Citizenship Act (Official Gazette nos. 53/91, 70/91, 28/92, 113/93, 4/94, 130/11, 110/15, 102/19, 138/21; hereinafter: CCA) that entered into force on 1 January 2020 materially clarified the institution of acquisition of citizenship on the basis of emigration and descent from emigrants.

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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 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 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.