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Are you planning to sell your property in Croatia? Indications are that the property market in Croatia has picked up substantially since the 2008 financial crisis. Now property prices in the country are on the ascendency. Follow this guide to selling property in Croatia in 2018 to learn more.
Croatia has been a full member of the European Union since 2013. Since then, the country has really shot to prominence in the overseas property market. There’s been a real demand for properties in Croatia from Scandinavian, German, Irish, Russian and even Chinese investors. However, the volume of sales is still tiny compared to, say, Spain or France.
What sorts of properties fetch the best price in Croatia? Tim Coulson, a real estate agent based in Croatia says in an interview with the New York Times: “Anything well located and priced correctly is selling. Supply is still very poor, with very little new development.”
“Price expectation from vendors has become more realistic, but many are still unrealistic. A motivated seller with a good property will find a buyer,” Mr. Coulson adds.
So who is buying properties in Croatia? The Russians are the most prominent buyers of properties here, according to Elena Nevskaya, a real estate expert based in Croatia, who says, “The typical Croatian seller prefers to wait 10 to 20 years, but not to sell his property 20 percent cheaper. During the 2000s the most active buyers were the Russians, who bought many seafront villas in the Dubrovnik area, pumping the prices.”
Zagreb and Dubrovnik are two cities in Croatia that attract buyers from Britain, Germany, Scandinavia, Ireland, Italy and especially from Russia. However Russian buyers are not as heavily involved as before because of the fall in oil prices and the subsequent fall in the Ruble’s value.
Most of the rich international buyers who purchase homes in Croatia do so to convert them into vacation homes or holiday homes. They are basically buying for the lifestyle aspect of it. Scandinavian buyers in particular are now the biggest movers and shakers in the Croatian property market and have taken on from where the Russians left off.
The Croatians are buying as well many with the intention of converting their properties into rental homes. As Mr. Coulson says, “As the local economy improves, more Croatians are buying in to rent.”
How is it like to sell property in Croatia? Unfortunately there is a lot of bureaucratic red tape involved in the buying and selling of property in Croatia. Sometimes a property may have multiple owners and it is hard to know for sure who actually owns it and who to make the payment to.
“Sometimes the owners of properties who were listed in registers, or whose grandparents were listed, prior to 1945 claim their ownership back,” Ms. Nevskaya explains. While this may not be the case with your Croatian property for sale, the fact that happens often certainly does create some doubt in the mind of the buyer, which is unfortunate.
The capital gains tax on the sale of the property is applied only if you have held the house for less than 3 years. In that case it is charged at 25% of the capital gains. Contact a UK estate agent specialising in the overseas property market to know more about the process.