Won't I get
a better deal if I go straight to an estate agent?
What about hidden extras?
Can I use a British solicitor?
How long does it take?
What are the transaction fees?
How often do I need to go to Croatia to buy a property?
Is it possible to buy privately?
What if I want to resell my place right away?
Non refundable deposit?
What sort of property is the best investment?
What about utilities?
What are builders like in Croatia?
What about planning permission?
How do I find and architect / builder?
What do renovations cost per square metre?
Can I find good furnishings in Croatia?
What do furnishings cost in Croatia?
Can I import things into Croatia?
Are decorating supplies readily available?
What kind of rent can I charge?
Who manages my place when I am not there?
What commission do letting agents get?
How do I treat income from lettings?
How do I advertise my place?
What do tourists look for?
Are Istrian Estate agents registered?
Are there multiple agency arrangements like in the UK?
What if the agent can't speak English?
How can I be sure that I know what is going on with my purchase?
How can I be sure a property has 'clean' title?
How does CroatiaBlue make money?
Can you come with me to Croatia?
The
deal
Won't I get a better deal if I go
directly to an estate agent?
No. There is no added cost in using CroatiaBlue. The estate agent pays us for
introducing clients. By talking to us you have a better chance of having a
smooth transaction, and understanding what is happening. TOP
What about hidden
extras?
Make sure that the agent has explained the total cost of all of the transaction.
Allow about 300 Euros for extras - the fees for paperwork will depend on your
particular property and the agent is unlikely to know all these small costs
in advance. TOP
Can I use a
British solicitor?
Yes, we can recommend a UK legal firm that specialises in foreign property
purchase. TOP
How long does
it take?
As in the UK, it can depend on the paperwork - though property 'chains' are
rarely a delay, assembling paperwork can still take time. Figure on at least
a month. TOP
What are the
transaction fees?
Usually 3-3.5% to the agent and 1% to the solicitor. These are not fixed fees
and agents charge different amounts. Agree these charges at the outset. In
addition there is a 5% National Sales Tax, plus whatever small fees may be
needed to sort out the paperwork regarding title. TOP
How often do
I need to go to Croatia in order to buy a property?
You might find a property on your first visit if you have worked out your finances
in advance and done your homework. Most people visit 2 or 3 times before they
decide on an area and find the right property. TOP
Is it possible
to buy privately?
Yes but be careful. The property may not have clean title and it might take
a long time to discover the real situation. If you decide on this route ask
to see the title and deeds and get translations of everything! TOP
What if I want
to resell my place right away?
If you have purchased a property as a private individual and you sell it within 3 years, capital gains tax will be liable. If purchased through a company corporation, tax will be liable on any profit. TOP
Non refundable
deposit?
Paying a deposit and signing the preliminary contract is binding. If you withdraw you will lose your deposit. If the seller withdraws (defaults) Croatian law requires that the seller pay double your deposit back. TOP
The
property
What sort of property
is the best investment?
You need to consider two aspects: capital appreciation and the potential for
annual rental income. As usual, it pays to do some research. Property in or
near the popular tourist towns is the easiest to let. TOP
What about utlities?
Water, and sometimes electricity, is generally metered for a whole building. Residents share the cost between them. It is certainly one way to get to know your neighbours, but perhaps not the best! Utilities can usually be separated to give you an independent account and we would recommend this. Extra electrical capicity can be added at a one-off cost of approx £150 a kilowatt. This may be worthwhile if a flat has a low capacity supply. TOP
Repairs
and Renovations
What are builders
like in Croatia?
The same as anywhere, good and bad, though generally much cheaper than in the UK. Ask to be shown other work done, particularly for other foreigners if possible. Work tends to slow down when you are absent. It is worth having someone in charge who speaks good English and who is your main contact. TOP
What about planning
permission?
Some areas of the older parts of town have very strict planning limitations as regards the the exterior of the building, though considerably more flexible with regard to the interior. The process of getting planning approval can take quite some time. We would strongly advise using a reputable architect to handle any sort of structural work or major alterations. TOP
How do I find an architect / builder?
The agent will normally be able to adivise you about architects and builders. It is good practice to talk to previous clients of any professional you may wish to use. TOP
What do renovations
usually cost per square metre?
Generally major renovations cost about €600 per m2. TOP
Furnishing
a property
Can I find good furnishings in Croatia?
There is not a lot of choice in Istria. You will find much more in Zagreb,
(about 3 - 4 hours drive away.) TOP
What do furnishings
cost in Croatia?
Furnishings are often imported and tend to be similar in price to the UK. TOP
Can I import
things into Croatia?
Yes, but there is an import duty, (approx 7%) and sales tax on new goods, (22%).
If you are importing from a country inside the EU you will be able to get a
refund on sales tax. In the UK contact Customs and Excise. TOP
Are decorating
supplies readily available?
Yes, but there is not a wide choice. TOP
Letting
a property
What kind of rent can I
charge?
Check out websites and compare like for like. See www.istra.com and
other tourist websites for individual towns. TOP
Who manages
my place when I am not there?
You should consider employing a local person to manage your property in your
absence. TOP
What commission
do letting agents get?
Agents commissions vary enormously, according to how much they do for you (eg.
finding the tourists; meeting them and handing over keys; paying tourist
taxes; cleaning; receiving the payments.) TOP
How do I treat
income from letting?
Income from letting should be treated like any other income and is liable for
UK personal income tax. (If property has been purchased as a company the tax
rules are a bit more complicated although there is a reciprocal taxation agreement
between Croatia and the UK.) TOP
How do I advertise
my place?
You might use a national overseas lettings website in the UK. They will charge
a percentage of the letting income and will manage the full process- good news
for a busy owner. Another option is to advertise on a Croatian website. This
will attract Europeans from many countries. There will be a modest annual charge.
This requires a lot of work on your part but will give you a greater return.
You may also receive emails in Italian, German and Croatian! TOP
What do tourists
look for?
There is a lot of competition in the high season, so unless you are aiming
at a niche market, then good service and quality will be of great importance.
High quality photos are very important for online promotion. You are aiming
to get repeat visits and recommendations. TOP
Istrian
Estate Agencies
Are Istrian agencies registered?
Efforts are being made to establish a proper regulatory body, but at the moment
this organisation does not have any real power. TOP
Are there muliple
agency arrangements in Istria like in the UK?
Many properties are with several estate agents. You may see the same photos
on various websites and in agents windows. The concept of exclusive representation
is rare. TOP
What if the
agent can't speak English?
Most agents employ at least one person who can speak English! TOP
How can I be
sure that I really know what is going on with my purchase?
If you use CroatiaBlue we can help! We have established good working relationships
with several estate agents in Istria. TOP
How can I be
sure the property has 'clean' title?
The estate agent should be able to show you a copy of the title deeds. If you
want a second opinion a Croatian solicitor can search the title deeds on any
property. You will receive a translated report on the state of the deeds and
an independent assessment on whether you should proceed. This costs 300 Euros.
You will need the full address of the property and if possible, the cadastral
number or Land Registry Certificate of Title number (ZK1). TOP
CroatiaBlue
How do you make your money?
We are paid a commission by the estate agent for introducing a buyer. TOP
Can you come
with me to Croatia?
We are willing to accompany potential buyers to Croatia, but this may not be
necessary if you are well prepared, (this service is chargeable.) Please contact
us if you have any questions. TOP
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