If you are interested in investing in luxury real estate, you should not overlook Croatia. This beautiful Mediterranean country has a lot to offer. In this blog, we will outline ten reasons Croatia is ideal for investing in luxury real estate.
1. Coastline
Croatia’s Adriatic coastline is one of the most stunning in the world. Crystal-clear sea, picturesque coves, and over a thousand islands attract millions of tourists yearly. This Mediterranean gem offers unique properties along the coast, ideal for clients seeking prestige. Moreover, luxury villas, apartments, and houses with pools, private access to the sea, and other amenities provide the highest level of comfort and enjoyment of the Mediterranean lifestyle.
2. Heritage
Croatia is known for its rich cultural and historical heritage, with many UNESCO-protected landmarks. Cities like Dubrovnik, Split, Šibenik, and Zadar have impressive histories, with countless historical buildings, museums, galleries, and cultural assets. Properties located in historic city centers or near cultural attractions are attractive to investors due to the high potential for investment in elite tourism.
3. Nature
Croatia is famous for its diverse nature, with beautiful beaches, mountains, lakes, and national parks, making outdoor activities such as hiking, rafting, cycling, and sailing popular year-round. Properties in stunning natural surroundings attract investors looking for a luxury lifestyle connected with nature.
4. Safety
Croatia has stable legislation that provides a favorable environment for real estate investment. As a member of the European Union and the Schengen Area, it is aligned with European legislation, providing security to investors. Buying properties in Croatia is relatively simple and transparent, with clear laws that protect the interests of property owners. Additionally, the tax system is competitive, with reasonable tax rates.
Croatia is a politically stable country that provides security to investors. Its economy benefits from the growing number of tourists and investments in various sectors. It is expected that tourism and the economy will continue to develop, with a positive impact on the real estate market. Croatia has also been declared one of the safest European countries due to its low crime rate and modern border protection.
5. Nautical paradise
One of the most indented coastlines in the world, with over a thousand islands and a mild Mediterranean climate, provides an unforgettable experience for sailors who have ranked Croatia among the world’s leading destinations in recent years. Many modern marinas, scattered throughout the Adriatic, are easily accessible to owners of luxury properties who prefer privacy and the romance of sailing over the hustle of city centers.
6. Prices
Croatia is an appealing choice for investors searching for value in their luxury real estate investments because remarkable properties are more reasonably priced than in other Mediterranean luxury locations.
7. Tourism
Croatia is a renowned tourist destination experiencing steady growth in tourism numbers. With its stunning coastline, rich cultural heritage, and diverse natural beauty, Croatia attracts millions of tourists annually, creating a strong demand for luxury accommodations. This is an opportunity for investors looking to capitalize on the thriving tourism industry by investing in luxury real estate properties.
8. Accessibility
Croatia is well-connected to major international cities with its modern airports and excellent infrastructure. Many airlines operate regular flights to Croatia, making it easily accessible for international travelers. This accessibility makes it convenient for luxury real estate investors to visit and manage their properties in Croatia.
9. Gastronomy
Croatia’s gastronomic offering is rich, diverse, and based on local ingredients and tradition. It is rooted in Mediterranean cuisine, a global standard for healthy living for centuries. The influence of various international cuisines also enriches the restaurant scene, with many receiving international recognition, and ten of them awarded the prestigious Michelin star.
10. Investments
Croatia actively promotes real estate investments through incentives and facilitation to attract foreign investors. Efforts have been made to simplify administrative procedures and expedite the property purchasing process, including reducing bureaucracy, digitalization, and improving legal security for investors.
Conclusion
All of the above makes Croatia a perfect destination for investment. Whether you are looking for your luxurious villa by the sea, an investment in the tourism sector, or a luxury apartment in the historic UNESCO cities, Croatia has it all.
With in-depth knowledge of the local market, Croatia Sotheby’s International Realty can discreetly assist you in finding the perfect property or investment that fits your needs and goals.
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.
In the last few years, there has been a lot of talk about a new generation of investors investing significant funds in cryptocurrencies. Although until recently, local market investors were still quite skeptical about digital assets and did not easily engage in cryptocurrency trading, current data show that this market is currently on a real upswing.
The consequences that followed the coronavirus pandemic have affected every segment of our daily lives and our habits; therefore, it does not come as a surprise that we quickly adopt new trends, and we readily adapt to the changing market situation faster than ever.
Crypto investors – current trends and doubts
While many people are starting to get acquainted with the cryptocurrency market in the desire to make a profit through safe and prudent investment, experienced crypto investors around the world use their digital currencies to invest in real estate. The growing trend of buying real estate in cryptocurrencies has been registered worldwide, and it seems that global trends are increasingly being accepted by investors in the local market as well.
Croatian properties have attracted great interest among international clients, and ever since the country joined the EU, many clients have decided to look for investment opportunities in attractive destinations on the Adriatic. At the beginning of 2023, Croatia will enter the eurozone, which is yet another reason for international clients to plan their new investments with additional security and optimism. In line with clients’ growing interest in real estate on the Adriatic coast and the increasing number of inquiries from crypto investors, we often get asked: ‘Is it even possible to buy real estate in Croatia with cryptocurrencies?’
Villa Virtuosa – island of Brač
A Quick Tax Guide to Buying With Cryptocurrencies
Analyzing the most common doubts and tax issues crypto investors face, we contacted the authorized tax advisor, Ms. Ivana Zec, who gave us her expert insight into the most important tax aspects that need to be considered when buying with cryptocurrencies. More detailed information is provided below.
Cryptocurrency-related transactions are part of a trend that is increasingly drawing the attention of tax advisors, accountants, and the Tax Administration itself. There are more and more specific actions and processes that are designed in the digital world, which should be incorporated into existing legal provisions for the purpose of taxation and accounting.
When talking about cryptocurrencies, it is important to emphasize that their acquisition is not taxable, but from the tax point of view, the owners of cryptocurrencies should be aware of the importance of sale or conversion into any other fiat currency. Namely, at the moment of selling or exchanging cryptocurrency for Croatian kuna or Euro or any other fiat currency, a potential tax liability arises for the cryptocurrency holder.
If the cryptocurrency holder is a natural person, the difference between the sale and purchase value is taxable with capital gains tax on the basis of capital gains, which is calculated at a rate of 10% plus surtax if the person has temporary or permanent residence in Croatia.
When a legal entity is the cryptocurrency holder, the sale of cryptocurrencies or their conversion into fiat currency has its own accounting story, which depends on the purpose for which the cryptocurrency was originally acquired.
Stone villa for sale – Brač
When talking about buying real estate and paying with cryptocurrencies, it is important to note that, according to the existing legal provisions, payment alone cannot be made directly in cryptocurrencies. It is necessary to change cryptocurrencies into Croatian kuna and make payments in this form. At the very moment of exchanging cryptocurrency into fiat currency, income tax is levied if the owner is a natural person. If the owner is a legal entity, the earnings are included in the profit and loss account.
In any case, it is recommended to consult a tax advisor before any transaction related to cryptocurrencies and real estate so that the owner of the cryptocurrency, i.e., the buyer of the real estate, is aware of all tax aspects.
In the case of international clients, it is important to emphasize that they need to check the tax aspect of these transactions in the country of their tax residence.
We hope that this blog will answer some of the tax questions that crypto investors often ask themselves before the final decision to buy real estate in Croatia.
For all additional information and advice, do not hesitate to contact us, and our agents will connect you with experienced experts in this field who will gladly guide you throughout the purchase process.