10 costly mistakes when buying real estate in Croatia

Buying an apartment or house in Croatia is a long-cherished dream for many people.

The idea is tempting: waking up in the morning with a view of the sea, spending the summer in your own home, or using a property as a long-term investment.

However, the enthusiasm for location, architecture and view can lead to important questions being asked too late.

These ten mistakes can turn a dream property into a costly and stressful project.

Mistake 1: Checking only the seller, but not the land register

A prospective buyer should not rely solely on who is presenting or using the property.

The decisive factor is who is registered as the owner in the land register and what encumbrances exist.

The following must be checked, among other things:

• Owner,

• Mortgages,

• Right of way

• Easements,

• Third-party rights,

• ongoing registration procedures.

According to official Croatian information, the land register extract is the authoritative proof of registered ownership rights.

Mistake 2: Mistaking the land register and cadastral register for the same thing

The land register and the cadastre fulfill different tasks.

Put simply, the land register documents ownership rights and encumbrances, while the cadastre contains technical and spatial information about properties.

The data should be compared. Discrepancies do not automatically mean that a property cannot be purchased. However, they must be identified, understood, and legally assessed.

Land registry and cadastral information can be searched via the official portal “Uređena zemlja”.

Mistake 3: Not fully checking approvals

A beautiful apartment is not automatically fully documented from a legal and structural point of view.

Buyers should check the following in particular, depending on the property:

• Building permit,

• Main project,

• Permit for use,

• Energy certificate

• possible legalization documents,

• The building conforms to the permit.

When buying an apartment under construction, the investor must be able to present a valid and legally enforceable building permit or corresponding building file. The subsequent occupancy permit is also important.

Mistake 4: Making a down payment before everything has been checked.

A reservation payment or deposit psychologically creates the feeling that the decision has already been made.

Therefore, the following should be clarified before making a large payment:

• Which property exactly is being reserved?

• Under what conditions will the money be refunded?

• What deadlines apply?

• What happens if legal problems are discovered?

• What happens when a party resigns?

• Is the payment part of the purchase price?

The Croatian government information states that a preliminary contract typically regulates the property, price, date of the main contract, and deposit. It also points out the potential consequences of withdrawal and recommends having the contract drafted by a lawyer.

Mistake 5: Only calculating the purchase price

The purchase price is only one part of the total investment.

Additionally, the following may occur:

• Legal advice,

• Notary,

• Translations,

• Land registry entry,

• Steer,

• possible broker's commission

• Financing costs,

• Insurances,

• Furnishings,

• Kitchen,

• ongoing maintenance.

If the real estate acquisition is not subject to VAT, the Croatian real estate acquisition tax is generally 3% of the market value and is borne by the buyer.

Especially in the case of unfurnished new buildings, a realistic furnishing budget should also be planned.

Mistake 6: Confusing "turnkey" with "fully furnished"

A turnkey apartment can be handed over without a kitchen, cupboards, furniture, lights and curtains.

Buyers should obtain written confirmation:

• which floor coverings are included,

• which sanitary fittings will be installed

• whether air conditioning is planned,

• whether a kitchen is included

• whether lights are installed,

• whether parking space and storage room are included in the purchase.

Unclear terms should be replaced by specific equipment lists.

Mistake 7: Overvaluing the sea view and the location.

A sea view is emotionally appealing and can increase the value of a property. However, it should not overshadow all other criteria.

An apartment can have a spectacular view and still be inconveniently located.

The following must be checked:

• Access,

• Gradient,

• Distance to the beach,

• Distance to shopping facilities,

• Traffic and summer noise,

• Parking situation

• alignment,

• Wind,

• future development,

• Usability outside the season.

A slightly less spectacular view may be the better decision in the long run if the property is more easily accessible and usable all year round.

Mistake 8: Failure to commission an independent legal review

A real estate agent, developer, or seller can provide information. However, this does not automatically replace independent legal advice for the buyer.

Your own lawyer can, among other things, check:

• Ownership arrangements,

• Contract clauses,

• burdens,

• Permits,

• Payment terms,

• Requirements for registration in the land register.

The Croatian government explicitly recommends having preliminary and purchase contracts drawn up or reviewed by a lawyer to protect the buyer's interests.

Mistake 9: Planning the setup only after the handover

When building a new house, furniture and technical connections should be considered together.

Those who only decide where to place the bed, television, dining table or kitchen after completion may discover:

• lack of electrical outlets,

• incorrectly positioned light outlets,

• unfavorable air conditioning systems,

• too little storage space

• unsuitable water connections,

• Lack of preparations for curtains.

Early interior planning prevents changes and allows for a more harmonious result.

Mistake 10: Not having anyone on site

Many buyers still live in Germany, Austria, or Switzerland.

However, questions may arise at short notice during the purchase and completion process:

• Has a delivery arrived?

• Was the correct tile installed?

• Are the roller shutters and air conditioners working?

• Is the kitchen installed correctly?

• Have the defects been rectified?

• Who will accept the property?

Without a local contact person, even small problems can quickly lead to additional travel, delays, and misunderstandings.

The most important protection is good preparation.

Most mistakes don't happen because buyers are careless.

They arise because processes and terms are unfamiliar in another country, and enthusiasm for the property often grows faster than the review of the documents.

Therefore, a secure purchasing process requires:

• complete documentation,

• independent legal review,

• transparent costs,

• realistic time planning,

• technical inspection

• reliable contacts.

Zenith assists buyers with selected properties from our own construction projects. Because we are familiar with the projects ourselves, we can provide direct information on planning, construction, and features.

If desired, the property can be planned together with AMAKU Interior during the construction phase and accompanied until it is fully furnished.

Because a property in Croatia should bring long-term enjoyment – and not become a never-ending project due to avoidable mistakes.

Note: This article is for general information purposes only and does not replace individual legal, tax, financial or construction advice.