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.
We are only a few weeks away from the official beginning of summer, and sunny spring days have been inviting us for quite some time to enjoy the outdoors and spend more time in nature. And while we are slowly leaving the pandemic behind and returning to old habits and life pace, it seems that long quarantine days have motivated us to return to living in harmony with nature and devote more time and attention to our terraces, balconies, and backyards.
It comes as no surprise that outdoor patios have never been more luxurious. New trends and innovations in the decoration of outdoor spaces encourage villa owners to push the boundaries of luxury and comfort. The interiors and exteriors harmoniously complement and intertwine, and the result is an almost idyllic blend of interior and exterior spaces, as befits the Mediterranean way of life that takes place outdoors for most of the year.
Pool area design trends
Lounge area surrounded by greenery
Since all life has turned within four walls, people most often find relaxation zones in nature today, to move away from everyday stress and the monotony of work within the living space. Just facing nature, there is a growing trend of creating lounge zones in the exterior of real estate that is often surrounded by lots of greenery to fulfill the desire to go to nature and rest in it within the living space.
Villa Hedonist Dream
What is widely sought in the field of the landscaping of a such zone is multi-purpose outdoor furniture that will have different ways of use with minimal changes. Taking into account the need for physical distance when gathering, with such furniture in the blink of an eye, the sofa is transformed into several seats that will allow distance. Drinking compartments or simple snacks can also be set up inside the tables and then served to guests. When it comes to designer outdoor furniture, standard traditional materials such as wood and fabrics in soft tones in contrasting wood colors still prevail. Opposite the wood, we come across anthracite rattan with pillows of the same or contrasting color. Indispensable parts of outdoor furniture are corner sets, dining sets, deck chairs, and auxiliary furniture such as relaxation bags, swings, and side tables.
Firepit as a gathering place
Fire has always been a gathering place, and as such, is an indispensable part of the lounge zone of modern villas today. The gathering around the fire comes in several forms, all depending on the wishes of the user. Often part of the lounge zone is an outdoor firepit which during the night becomes a favorite gathering place for family and friends. Around the fire pit usually is located a piece of circular outdoor furniture, with the designer’s signature, which with its decor fits into the very motif of the fire. The second most common form of gathering around the fire is certainly the one around the outdoor fireplace, which will also serve as a place for preparing meals, but also as a place for socializing and talking. Many villas today like to connect incompatibly, so next to, or inside the pool itself, they design a part that will contain a fireplace that will illuminate the pool and its swimmers, especially at night.
Villa Authentic Retreat
Modern swimming pools with sun deck
Today, the relaxation zone extends to the area of the pool itself, where the deckchairs are no longer in their immediate vicinity, but they occupy a position inside the pool itself. This innovation is characterized by specially made lounge ledges that are located in the shallower part of the pool and are partially immersed in water, which allows you to lie down comfortably with constant refreshment by the pool water. An umbrella can be added to these sunbeds so that lying down is carefree even in the early hours.
In addition to the pool and sun loungers, you can often find a hot tub as a luxury accessory that equates the relaxation zone with that of the best spa. With the classic whirlpool tubs that can accommodate 2 to 5 people, and are located as a separate unit, today we encounter a growing trend of implementation of whirlpool units within the pools so that they are separated by a safety barrier. This innovative technology allows you to switch from a relaxing position in a hot tub to a slightly more active one in the blink of an eye by swimming from one end of the pool to the other.
Innovative luxury accessories – outdoor showers
An indispensable part of every pool area is its outdoor shower, which ensures quick refreshment during hot summer days. Today, there is a unique outdoor shower from the Infinity Luxury company on the market, which with its appearance, represents a luxury sculpture enriched with shower and lighting functions. This innovative combination of natural materials, water, and LED lighting can completely change the design of the exterior of the property and raise it to a completely different level. It is adorned with a modern inverted L design with simple lines that fit into any exterior completely naturally. Showers are a fusion of tradition and innovative technology because they are made of natural materials, while at the same time they contain special technologies for saving water, filtration, and lighting of the shower itself.
Black Marbella Shower (Photo credits: Dominik Benčan)
Infinity Luxury showers come in 3 models: Marbella, Infinity, and Safari. The Marbella model is made of natural stone, the Infinity is adorned with ceramics from the renowned Italian brand Marazzi, while the Safari is created from an environmentally friendly material, HPL. The outdoor shower can be created according to your wishes and the style of the exterior of the property. If you have a traditional-style property made of stone, the Marbella shower is the ideal choice for you. The type of stone is chosen by the client, often the type that corresponds to the one on the front of the property or from the exterior area. If ceramics dominates the property, the Infinity model and a large selection of Marazzi decor will fit best as part of the exterior. The Safari model will fit perfectly with properties of modern design that do not run away from atypical decors and materials, and at the same time, are focused on sustainability.
Marbella Shower (Villa Crystalline)
Infinity Luxury showers cannot be compared to anything on the market, so they are considered unique in the world, and their approach in making is based on the client’s choice of the model or material, followed by the selection of the desired decor or type of stone, and the additional possibility of ambient lighting of the shower itself. The personalization of this unique sculpture ends with the possibility of engraving the logo or name of the property itself on the front of the shower.
By choosing this eco-friendly shower, the preservation of nature and water is affected regarding the shower’s special ECO-tech shower rose that saves water up to 50%, while the NATURRA water filtration system improves water quality and neutralizes the negative effects of chlorine and its compounds.
When designing the exterior itself, it is possible to plan this shower to ideally fit into the design of the property and its exterior.
Marbella Shower ( Photo credits: Villa Lucija)
We are happy that architects and investors have started to pay particular attention to outdoor spaces. In the Mediterranean, which enjoys a mild climate all year round, the outdoors is a kind of a living rooms extension, so the tendency is to connect the interior and exterior in one harmonious area adopting innovative methods; therefore, the border between the two becomes almost imperceptible since all the beauty and fullness of life in the Mediterranean comes to the fore precisely by staying outdoors in a picturesque environment of magnificent nature and crystal clear sea.
We hope that we have inspired you with the latest trends and innovations in landscaping that enhance the outdoor experience and allow you to enjoy the outdoors even more. Spending more time outdoors has a beneficial effect on health and enriches our everyday life. We are convinced that, with luxury and innovative accessories, you will succeed in creating an idyllic oasis that you will be proud of and enjoy in the company of family and friends.
The sun, the sea, beautiful weather, and Mediterranean lifestyle, combined with great properties in great locations, are the recipe for a successful business year when it comes to Croatia’s luxury real estate market. The numbers have gone up and are expected to continue growing throughout the following year.
Retrospective of the luxury real estate market in 2018
2018 has generally been kind to Croatia’s luxury real estate market since demands for this sort of property were up by 25 percent compared to 2017. At the same time, the prices of luxury real estate in Croatia rose by 10-15 percent. The average price for a villa ranges between 5000 to 6000 euros for a square meter.
Clients opting for these properties are mostly foreigners, coming primarily from Germany, Austria, the Czech Republic, Slovakia, England, and Scandinavian countries. Also, some inquiries came from Russia and China. The average age of property buyers varies between 45 and 60. Russians and Chinese want the property they buy to match the highest standards, while Europeans are more open to redecorating and reconstructing the property themselves.
Clients have their preferences regarding location, choosing mostly properties at the coastline between Primosten and Trogir (especially in Split) and around the town of Dubrovnik. Besides their beauty, these areas owe their popularity to the proximity of airports, motorways, and marinas. When it comes to the islands, the most popular ones in 2018 were Brac and Hvar.
Despite great results, the market has its issues. The most prominent ones are the somewhat closed banks towards supporting investors and the lack of offer suited for clients aiming at luxury properties.
Predictions for the luxury real estate market in 2019
Still, positive market trends are expected to continue in 2019, with expected price growth of up to 10 percent, followed by even greater demand for luxury real estate in Croatia. The start of construction of several tourist resorts with 5-star hotels is expected in 2019, along with some world-class hotel brands to the Croatian market, such as 4seasons and Marriott.
As the leading luxury real estate agency in Croatia, it is important to have strong and recognized partners. We are proud to announce Marina Frapa Resort Rogoznica, the most beautiful Mediterranean marina, our newest partner. Ensuring our clients’ top quality service implies providing them with an array of luxury opportunities and possibilities. It is only logical to choose the Marina Frapa Resort Rogoznica as our partner and support.
– We are proud to have such a partner and to have the ability to offer our clients the services that it provides. Since the majority of the luxury properties in our portfolio are located on the Croatian coast and islands, the Marina Frapa Resort Rogoznica is an ideal port to recommend to our clients as a berthing opportunity throughout the year – Marko Pažanin, Director / Partner at Croatia Sotheby’s International Realty
Marina Frapa Resort Rogoznica wears a beauty crown among the Adriatic marinas, and it is certainly one of the most beautiful nautical ports of the Mediterranean. It is situated in the central part of the Croatian coast, between Šibenik and Split, in a lovely bay of Soline (Rogoznica), sheltered from all directions.
-We are extremely proud that the largest real estate brand, Sotheby’s International Realty, has recognized Marina Frapa Resort Rogoznica as an important strategic partner in Croatia. By signing this business partnership, we have started a new business cycle and opened additional opportunities for joined projects with Croatia Sotheby’s International Realty, that would be of great benefit for both parties and their clients – Domagoj Grgić, Sales & Marketing Manager at Marina Frapa Resort Rogoznica
About the Marina Frapa Resort Rogoznica
The marina center is an artificially built island that disposes of a 396 m length transit jetty and suitable for megayachts, the hotel “Otok” and other nautical, business, and servicing facilities. The on-shore marina complex includes 10 jetties with 450 fully equipped berths and a guarded area for 150 dry berths. The on-shore hotel “Kopno” features all the other luxury elements and facilities one would need in a unique location like this.
The entire Marina Frapa Resort Rogoznica complex covers an area of more than 136 000 m2. There are a 24-hour vessel surveillance service and video surveillance at the entrance into the marina.