When will EU citizens be able to buy agricultural land in Croatia?
At some point or another, you have probably come across an “incredible offer” for agricultural land near the Croatian coast, or on the coast itself, at a ridiculously good price. Most commonly sellers (in an attempt to make the deal more appealing) advertise that the spatial plan foresees the re-zoning of area as development land. Fearful of letting these “once-in-a-lifetime-offers” pass them by, plenty of people jump headlong into a pre-contract or a contract and put down part of the purchase price (e.g. as earnest money). Then the calamity begins as the transactions fall through due to the current restriction on agricultural land acquisitions in Croatia. What does the future hold for agricultural land acquisitions in Croatia?
As a rule, EU citizens can buy agricultural land in other Member States without restrictions, as real estate transactions fall within the free movement of capital within the EU. Some countries however, including Croatia, negotiated a temporary moratorium on the sale of agricultural land to foreign nationals to protect their interests in the accession negotiations. In Croatia the moratorium expired in July 2020, but the Croatian Ministry of Agriculture exercised a three-year deadline extension option.
As a result, nationals from other EU Member States are prohibited from purchasing agricultural land in Croatia until 30 June 2023, but will be free to do so from that date onwards.
Even if you do come across an amazing offer for agricultural land, we would advise against buying it until then because the Croatian (land registry) court will reject any application to register title to the land.
It should also be noted that under Croatian legislation the buyer picks up the tab for real estate transfer tax, which amounts to 3% of the selling price. To successfully register title in the land register, you must also obtain an OIB (personal identification number), which you can get at any tax administration office in Croatia.
Author: Dean Premec, Attorney-at-Law
