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Welcome to the RPC information pages.
Page 8 of 8 - You have decided to go ahead and buy your chosen property, what happens next?

A buyer's guide to a typical case where a Croatian limited company is required to own your chosen property.


(Updated 29/11/2019)

This page outlines the major milestones in the process for non Croatian buyers purchasing property via a Croatian company. It does not contain all the details but seeks to provide a step-by-step countdown of the major elements from the starting point where both parties accept a heads-of-agreement statement and then it continues to the point of transfer of the property. Its purpose is to give a big picture and a guide as to where we are at any time during the process.

Generally in order of sequence...

* Both sides agree to the heads-of-agreement statement.
* Buyer and seller appoint legal representatives.
* Buyer pays 10% deposit to seller via lawyer and Notary Public.
* If a company is required, choose a name and register it at a Notary.
* Choose company address, ‘ownership’ or ‘lease agreement’.
* Both sides appoint Special power of attorney as required. This will allow lawyers to open a company, open a company bank account, represent the parties at the bank, obtain ID numbers, make declarations to tax authorities, agree the sales contract, sign the sales contract, advise the land court and registries. This process is long and will almost certainly required posted documents for signatures.
* Buyer to establish a Croatian company at dept of Hitro at ‘FINA’.
* Buyer to establish a Croatian company at the local Commercial Court.
* Receive “established decision” from commercial court.
* Get a company stamp made.
* Open business bank account for buying company. (2-3 weeks).
* Respond to banking questionnaire (money laundering laws).
* Get bank company ID number.
* Appoint book keeper.
* Add working funds to bank account.
* Register company with HR version of ‘Companies House’ and Chamber of commerce.
* Establish and agree buy/sell contract.
* Send funds to bank ready for transfer to current owner/seller.
* Sign contracts - transfer funds to seller. It is now sold.
* Advise Land registers and tax office of change of ownership.
* Advise utilities of new owner and submit meter readings.
* Pay lawyers and RPC fees.
* Pay 3% transfer tax when the bill arrives.
* Enjoy.

Actions 3 and 4 will require the buyers to be in attendance with their chosen lawyer for a period of not less than three consecutive working days. This is necessary in order to sign various documents enabling your lawyer to act on your behalf once you have returned home. One or two of these documents are not available until other signed and witnessed documents have been registered at the land court, hence the need for you to be in attendance is unlikely to be achieved in a single day.

Compiled with the best of intentions and in good faith, we know from experience that some processes can get bogged down (a signature in the wrong colour ink is a recent example) but we aim to provide you with a guide to help you understand how far along the procedure has progressed.

If you are buying residential or building zone property, or you are an EU citizen (after August 2020) then you have no need for a Croatian company, the process will be much simpler - as shown below:-

* Both sides agree to the heads-of-agreement statement.
* Buyer and seller appoint legal representatives.
* Buyer pays 10% deposit to seller via lawyer and Notary Public.
* Both sides appoint Special power of attorney as required. This will allow lawyers to open a company, open a company bank account, represent the parties at the bank, obtain ID numbers, make declarations to tax authorities, agree the sales contract, sign the sales contract, advise the land court and registries. This process is long and will almost certainly required posted documents for signatures.
* Establish and agree buy/sell contract.
* Send funds to bank ready for transfer to current owner/seller.
* Sign contracts - transfer funds to seller. It is now sold.
* Advise Land registers and tax office of change of ownership.
* Advise utilities of new owner and submit meter readings.
* Pay lawyers and RPC fees.
* Pay 3% transfer tax when the bill arrives.
* Enjoy.