Excel Property Bulgaria

Croatia

Country overview

(CNN) -- Though a small country, Croatia defies categorization. It's often considered both Mediterranean and European because of its location; The horseshoe-shaped republic is nestled between Hungary, Slovenia, Bosnia and Yugoslavia, and lies across the Adriatic Sea from Italy. The diverse cultural influences have resulted in distinctive architecture and a rich stew of traditions.

Author: George Bernard Shaw summed it up as "paradise on earth".

Croatia, with its diverse and stunning coastline, mild climate and overall, ideal location in south-east Europe, is fast becoming one of the most sought after places to invest in property. The value of property is stable and steadily increases due to strong demand.

So, whether looking for an ideal holiday home, or a sound investment, or both, Croatia today is the country which is fast becoming a prime choice, whilst perhaps it is still the best hidden secret in the Mediterranean.

• Country area: 56.542 km2
• Surface of the territorial sea: 31.067 km2
• Population: 4.381.352 inhabitants
• Capital: Zagreb, 770.058 inhabitants
• Coastline: 5.835 km, 4.058 km being the coastline of islands, cliffs and reefs
• Number of islands, cliffs and reefs: 1.185; the largest islands are Kirk and Cress; there are 67 inhabited islands
• Highest peak: Dinara 1.831m. above the sea-level
• Climate: in the interior: moderate continental climate with hot and dry summers and cold and humid winters mountainous regions: fresh summer and sharp winters with a large amount of snow coastal regions: Mediterranean climate with hot and very dry summers, and mild but humid winters average temperature in January: the interior -1 to 3° C; mountains -5 to 0° C; coast 5 to 10°C average temperature in August: the interior 22 to 26° C; mountains 15 to 20°C; coast 26 to 30°C
• Composition of population: the majority of the population are Croat's; national minorities are Serbs, Slovenes, Hungarians, Bosnians, Italians, Czechs and others
• Religions: the majority of the population are Roman Catholics, and in addition there are a number of those of Orthodox faith, as well as Muslims and Christians of other denominations
• Official language and alphabet: Croatian language and Latin alphabet

Why invest

Croatia has a fantastic climate, clean beaches which surpass the rest of Europe and very reasonably priced real estate. If you fancy yourself as a DIY person then the scope here is endless, alternatively if that doesn’t appeal, look for a renovated apartment or house, there are plenty. Prices along the coast start from about E80.000 and give you access to one of the most beautiful and unspoilt places in Europe.

The Croatian real estate market is still in its infancy, so prices are considered to reasonable at the moment. However, with the introduction of new purchase laws for foreigners in Croatia recently, as well as the fact, that in the not too distant future Croatia is due to join the EU, it will not stay this way for long!

• Better sailing than in Turkey. Croatian Islands to rival those of Greece and a cuisine to match Italy\'s.
• Croatia is under-way with EU accession talks, and is scheduled to join in 2009. The country is to date hitting the necessary economic and political targets
• 10 million tourists visited Croatia in 2005 and the number is expected to be increasing every year
• The six main airports have been upgraded to meet international standards
• Easy access - about 3 hours flight from most European countries

Legals and taxes

Two choices exist for purchasing houses in Croatia. As an individual, foreign buyers can own real estate provided that the "condition of reciprocity" is satisfied. Proof is attained from the Croatian Ministry of Foreign Affairs which can take several months. Alternatively, a foreign individual can register a company in Croatia in order to purchase a house – accordingly, permission is not required. However, purchasing a house via a company does impose tax implications.

Three key stages exist in the buying process: 1. Reservation Contract – in order to reserve the house. 2. Preliminary Contract – for a foreigner to apply for permission to buy a house via a deposit (circa 10%) 3. Final Contract – upon signing, the final payment is made and the purchase registered with the local Land Registry. A "Power of Attorney" can be grated if the buyer is not in attendance at this stage.

Fees relating to a purchase include: * Transfer Tax * Stamp Duty * Registry fees * Notary fees * 3% Agency fee * Typically, fess and charges total 10% of the house price.

Please contact us if you need further information!