In an era where digitization permeates every aspect of our lives, the integration of cryptocurrencies is changing the way we perceive and conduct financial transactions. In this blog, we introduce the collaboration between Croatia Sotheby’s International Realty and Electrocoin Ltd., a company that has been specializing in cryptocurrency trading mediation and crypto payment processing since 2014.
In Croatia, EUR is clearly defined as the legal means of payment. To comply with this legal provision while still allowing clients to pay with cryptocurrencies, Croatia Sotheby’s International Realty has decided to partner with Electrocoin, a company that, through its PayCek platform, enables automatic and instant conversion in the payment process from cryptocurrency to EUR, thus fulfilling all required legal obligations.
Electrocoin Ltd. leads the integration of cryptocurrencies into real estate transactions. Specializing in cryptocurrency trading mediation and crypto payment processing, Electrocoin operates under the supervision of the Croatian Financial Services Supervisory Agency (Hanfa). As the first company registered in the Register of Virtual Asset Service Providers in Croatia, Electrocoin has been a pioneer in the crypto world.
With its proprietary cryptocurrency payment processing system, “PayCek,” Electrocoin, in collaboration with Croatia Sotheby’s International Realty, enables buyers to seamlessly purchase properties listed by the agency using cryptocurrencies.
Here’s how the process works:
1. Sales Agreement
The buyer and seller initiate the process by entering into a standard real estate sales agreement.
2. Assignment Agreement
Subsequently, based on the real estate sales agreement, the buyer concludes an Assignment Agreement with Electrocoin and the seller. This agreement lays the foundation for the cryptocurrency transaction.
3. Cryptocurrency Payment Instruction
Using its “PayCek” system, Electrocoin generates a cryptocurrency payment instruction tailored to the specific transaction.
4. Execution of Cryptocurrency Transaction
The buyer executes the cryptocurrency transaction, initiating the transfer of digital assets as payment for the property.
5. Processing of Transaction by Electrocoin
Electrocoin carefully processes the cryptocurrency transaction and transfers the equivalent amount in EUR to the seller’s account.
6. Confirmation and Communication
The buyer receives confirmation of the completed transaction via email. Simultaneously, the buyer informs the seller of the successful transaction.
7. Tabular Statement
Upon confirming full payment, the seller issues a tabular statement, finalizing the real estate transaction.
Integrating cryptocurrencies into real estate transactions marks a new era in the industry. Through this collaboration, Croatia Sotheby’s International Realty offers its services to a new generation of clients, ensuring fast and secure transaction processes. This represents a step forward for the Croatian real estate market.
Navigating the real estate investment or sales process is like exploring a labyrinth filled with potential opportunities, challenges, and possibilities. This is why collaborating with a renowned agency, Croatia Sotheby’s International Realty, can transform the entire experience, making the process more efficient and enjoyable.
1. Expert Knowledge and Price Insights
One advantage of partnering with a real estate agency lies in gaining access to expert knowledge and price insights. Our professionals can help clients distinguish good from excellent investment opportunities in this dynamic environment, thanks to their extensive knowledge and experience in the real estate market.
2. Time and Energy Savings
The real estate transaction world is filled with numerous tasks that require a significant amount of time and attention, from thorough property advertising to organizing viewings and conducting negotiations. Entrusting these responsibilities to experienced professionals allows investors to focus on making timely decisions, staying informed about market trends, and effectively managing their investment portfolios.
3. Destination Knowledge and Property Scouting
Experts in this field have excellent knowledge of destinations, future development opportunities, and local amenities. For those seeking exclusivity, Croatia Sotheby’s International Realty offers specialized “property scouting” services for VIP clients, providing access to hidden gems in the real estate market before they are officially listed. Being among the first to learn about potential opportunities before they hit the broader market is a valuable advantage that can significantly impact finding sought-after properties.
4. Transaction Security
The security of transactions is the undisputed priority of a reliable real estate agency such as Croatia Sotheby’s International Realty. Security and ease of the buying or selling process are key, giving a sense of trust to both buyers and sellers.
Whether it’s ensuring legal compliance, verifying ownership documents, or managing complex financial transactions, the thorough protocols of a professional agency contribute to a sense of trust and peace of mind. With us, your safety is not only a priority but also the foundation of our business.
5. Negotiation Skills
Real estate negotiation is an art, and experienced real estate agents have perfected this skill through years of work.
When it comes to securing the best terms for our clients, our professionals guide them through the negotiation process. Their ability to understand market dynamics, assess real estate values and represent clients’ interests positions them as invaluable allies in achieving optimal results. Negotiation skills can result in significant savings or improved return on investment.
6. Guidance and Support
In addition to transactional aspects, Croatia Sotheby’s International Realty provides support during the entire buying and selling process.
By providing constant support and guidance, we ensure clients are constantly informed and reliable at every step. From the initial real estate search to the closing of the purchase deal, the presence of a dedicated team of experts ensures a pleasant experience for the investor.
Croatia Sotheby’s International Realty is a trusted advisor, offering insights, answering questions, and providing support during what can be an emotionally challenging process.
7. Worry-Free Purchase or Investment
In the quest for the perfect home or investment opportunity, one of the key features to consider is proper property documentation.
Our agency proudly stands out as a reliable partner because all our properties go through a thorough check of all documentation, providing you with complete security at every step.
Every property we present reflects our commitment to quality, making us a reliable partner in achieving your goals.
In conclusion, the advantages of engaging a real estate agency are truly countless. It enables the saving of precious time and energy, ensures transaction security, and provides clients with continuous support. Strategic positioning in the real estate world enhances the overall experience for investors, making the decision to collaborate a pleasant one. Whether for seasoned investors or individuals entering the world of real estate transactions for the first time, the assistance of a professional agency is invaluable. It acts as a compass, guiding clients through the intricacies of the market, offering protection, and unlocking opportunities that might otherwise remain hidden. In the real estate world, where decisions can have profound financial and life impacts, a partnership with an agency becomes an investment in itself—an investment that pays off in terms of knowledge, expertise, and ultimate success.
Building a luxury villa is a challenging process during which the support of experts is necessary to achieve the goal effectively. In this blog, we will take you through the basic five steps needed to realize your vision and describe how Croatia Sotheby’s International Realty can facilitate every step, from idea to realization.
Step 1: Vision
Before starting construction, it’s important to have a clear idea of what you want to achieve, considering your wishes, expectations, and lifestyle. Our team of experts enriches ideas, puts the concept into a realistic and feasible framework, and informs you about the means and time required for implementation.
Step 2: Location
The location of the building land is one of the most important decisions at the beginning. It strongly affects the value of the property, and the life quality of those who will stay there.It’s also important to consider the privacy aspect, the land’s orientation, and the accessibility of the facilities. It’s essential that you collaborate with a trustworthy partner to find the ideal location for your investment, ensure that all of your needs are satisfied at a reasonable price, and discover the market possibilities relevant to your vision.
Step 3: Design
Croatia Sotheby’s International Realty cooperates with renowned architects and interior designers who, taking into account the details of your vision, create architectural projects and an idea of the interior appearance to know the cost parameters and the possible sale price before construction. What sets us apart from the competition is the implementation of world design trends when creating the book of standards so that you can assess the details as clearly as possible and make the necessary decisions more simply. Obtaining a building permit is the crown of quality project preparation, after which construction begins.
Step 4: Construction
During construction, the support of everyone initially involved in the project is crucial. During construction, Croatia Sotheby’s International Realty can also offer you the possibility of “pre-sale”, that is, sell your property while still under construction. The fact that we were involved in the project from the beginning allows us to guarantee the quality of planning and execution to the client, in cooperation with the investor.
Step 5: Sale
If you decide to sell, the best moment is immediately after the completion of construction, when the property is finalized and equipped, because the luxury that our prestigious clients prefer can only be experienced in its full glory when all the requirements of the initial vision have been met.
The end of the construction cycle brings satisfaction to everyone involved in the process because the investor’s expectations have been fulfilled, the buyer’s dream has come true, and we are overjoyed because we’ve fully justified the demands of our clients.
Due to the growing interest of citizens of third countries for real estate on our coast and the increased number of inquiries about the possibilities of acquiring property and residence in Croatia, we decided to contact the lawyer, Mr. Dino Pivac, who prepared a short guide for citizens of third countries with basic instructions which we present below.
Third-Country Nationals – in the sense of the relevant regulations of the Republic of Croatia – are persons who are not citizens of member states of the European Economic Area (the European Union, the Principality of Liechtenstein, the Kingdom of Norway, the Republic of Iceland) or the Swiss Confederation, and who have the citizenship of a third country or are stateless.
Citizens of third countries cannot acquire ownership of agricultural and forest land in the Republic of Croatia, but they can buy real estate within the boundaries of the construction area – apartments, houses, etc. or undeveloped construction land – and this under the assumption of reciprocity between the Republic of Croatia and the country in question, and the obtained consent of the Ministry of Justice of the Republic of Croatia.
Regarding the presumption of reciprocity, the Ministry of Justice of the Republic of Croatia publishes on its official website a list of countries with which there is reciprocity when acquiring property rights: https://mpu.gov.hr/informacije-o-uzajamnosti-u-scecanju-prava-vlasnistva-nekretnina-izmedju-republike-hrvatske-i-drzava-izvan-europske-unije-republike-island-knezevine-lichtenstein- kingdoms-of-norway-and-the-swiss-confederation/6186
Villa Aura – island of Brač
Citizens of third countries can stay in Croatia:
- on a short-term (also called tourist) stay – up to 90 days in any period of 180 days, with the fact that 90 days of stay can be used once or multiple times;
- on temporary residence – up to one year;
- on permanent residence – unlimited.
The time spent in other member states of the European Economic Area is not included in the short-term stay. During a short-term stay, a citizen of a third country must have registered accommodation. The accommodation must be reported by the legal or natural person who provided accommodation to the citizen of a third country within one day of the arrival of the third country citizen for accommodation via the eVisitor website or by reporting to the competent police department/station. If the accommodation provider cannot register, the citizen of a third country has an obligation to register within two days of entering the Republic of Croatia or changing accommodation.
In order for a citizen of a third country to be granted temporary residence in the Republic of Croatia, it is necessary for him to submit an application on a prescribed form available online. Where the application must be submitted depends on whether a visa is required to enter the Republic of Croatia or not, which depends on each individual country and can be seen at: https://mvep.gov.hr/informacije-za-gradjane-244593/consular-information-22730/visas-22733/review-visasystem/22853
Villa Adriatic Oasis – island of Hvar
For example, citizens of the visa country (e.g., Russia) submit requests in diplomatic and consular missions. The police department or station, based on the place of intended stay/residence, decides on the request, informs the consular representation where the request was submitted, and they issue a visa for entry into the Republic of Croatia. On the other hand, citizens of a country (e.g. Ukraine) where a visa is not required can submit a request at the police department or station at their place of residence.
Among other things, temporary residence in the Republic of Croatia can be granted to a citizen of a third country based on the fact of ownership of real estate in the Republic of Croatia.
The following shall be attached to the request for a temporary residence permit:
- color photo of size 3×3.5 cm;
- a copy of a valid foreign passport or other travel document (the validity period of the foreign travel document must be three months longer than the period of validity of the temporary residence);
- proof of insured funds for maintenance – funds needed for maintenance on a monthly basis in the amount of at least 50% of the average monthly net salary paid in the last year in Croatia (currently HRK 3,560.00 x 12 months), and the proof can be a bank certificate, pension extract, employment contract, etc.;
- proof of health insurance – private or travel health insurance, employment contract, etc.;
- proof that he has not been legally convicted of criminal offenses from his home country or the country where he resided for more than a year immediately before arriving in the Republic of Croatia;
- proof that justifies the purpose of a residence in the Republic of Croatia – in this particular case, a title deed for real estate in the Republic of Croatia that proves ownership of the same.
The documents attached to the request must be in the original or in a certified copy, and foreign documents in a certified translation in Croatian (exceptionally in English) and certified in accordance with special regulations, which again depends on which country it is, because the documents are for use in the Republic of Croatia for some countries a notarization-apostille is required (eg Ukraine), while for some countries no special certification is required (eg Russia). The list of countries can be seen at: https://mpu.gov.hr/nadovjera-legalizacija-isprava/25282
Most importantly, the request for re-approval of temporary residence in the Republic of Croatia based on the fact of ownership of real estate in the Republic of Croatia can be submitted again after the expiration of six months from the expiration of the previously approved temporary residence.
We hope that this blog has dispelled at least some of the doubts that you, as citizens of third countries, had when inquiring about buying real estate in Croatia or changing your residence. For all additional information and advice, do not hesitate to contact us, and we will be happy to connect you with experienced experts in this field.