Buying Croatia property for letting it out
Many foreigners looking for property in Croatia are motivated by the investment potential of the place. Not anyone is just looking for their dream holiday home or a place in the sun but an investment that can guaranty an extra income. Due to that, many people are buying Croatia property to let it later. What these buyers should know is the legal side of it.
Firstly, if you buy as a private person that is in your name you'll need to obtain a permission from the Ministry of Foreign Affairs of Croatia in order to enter in the local Land Registry. The permission is just a formality and applicants with the right documents should get the approval with no problem. The issue that buyers to let may have with this route is time, the permission takes between twelve and eighteen months to be processed and you need it for the land registry. Your name in the Land Registry as the owner of the property is vital for renting your property under the law.
Another way is to buy as a company and rent the Croatia property in name of the company. Opening a Croatian limited company is a fast route for investors looking for property in Croatia as your company doesn't need to wait for Ministry approvals and the ownership can take effect immediately. Setting a company can cost you an initial 3,000 Euros plus 2,000 more to be deposited in the bank account of the company. You can anyway, take back this 2,000 once the company was opened.
You can always ask you real estate agent in Croatia for advice regarding the most suitable route for your needs.
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