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.
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.
Sotheby’s International Realty is pleased to announce that its affiliated brokers and sales professionals achieved more than $114 billion in global sales volume, the highest annual U.S. sales volume performance in the brand’s history. $102 billion of the global sales volume was achieved in the U.S., marking another record accomplishment for the brand.
“In 2019, the Sotheby’s International Realty® brand continued to achieve solid growth,” said Philip White, president and chief executive officer for Sotheby’s International Realty. “The brand expanded into new countries and territories and entered new markets in the U.S. We continued to make strategic business decisions that benefitted both our independent sales associates and affiliate companies. I am immensely proud of the hard work and dedication from our vast global network, and I look forward to continuing this momentum in 2020.”
2019 Achievements
Propelled by a strategic business move in March 2019, when Sotheby’s International Realty integrated its affiliate network and company-owned brokerage into one global organization, 50 new Sotheby’s International Realty offices were opened, bringing the brand’s presence to 1,000 offices in 70 countries and territories and more than 23,000 affiliated sales associates worldwide.
Sotheby’s International Realty continued to lead the category with the roll-out of exclusive marketing affiliations and first-ever technology launches, announcing it will soon unveil a new, fully integrated website. The brand’s existing website, sothebysrealty.com, saw another record year with more than 34 million visits, a 14 percent increase year-over-year. Besides, Sotheby’s International Realty was the first real estate brand to launch and implement mixed reality to its Curate by Sotheby’s International Realty sm augmented reality app, which merges the real world with virtual home staging. The platform can be utilized in various home buying and selling scenarios, particularly benefit agents and developers, to help prospective buyers envision their new home. To support the daily business needs of the network’s more than 23,000 independent sales associates, the brand unveiled Current by Sotheby’s International Realty®, a robust marketing suite of technology tools consisting of best-in-class and exclusive apps, which provide sales associates with a distinctive and competitive edge in the market. For partnerships, the brand entered into an affiliation with Bloomberg.com as the exclusive launch sponsor for a new luxury properties marketplace.
The Sotheby’s International Realty brand and its independent sales associates continued its support for New Story, its charitable partner, and a certified 501(c)(3) non-profit organization. As a result, 83 families, who were among those who lost their homes in the 2017 earthquakes, moved into their new homes in Morelos, Mexico. A total of 153 homes in Haiti and Mexico were funded through the initiative.
Global Growth
This year observed significant growth for the brand’s existing affiliate companies in the United States through recruitment efforts and strategic mergers and acquisitions. The brand increased its market presence in Brooklyn, New York, the Greater Boston area, Massachusetts, and Indiana. Last year, the brand also entered several new key markets, expanding the Sotheby’s International Realty network’s presence to 43 states across the country.
Outside the U.S., the Sotheby’s International Realty brand achieved more than USD 12 billion in sales volume and continued to expand into key markets worldwide. In Europe, the brand grew its presence in Monaco; France; and Berlin and Binz, Germany. New offices were also opened in Doha, Qatar, and Paphos, Cyprus, expanding its global presence in marketing luxury listings. In The Caribbean and South America, the brand saw growth in Zapallar, Chile, an upscale residential community located two hours outside of Santiago; and agreements were signed to expand into the Anguilla territory. In the Asia-Pacific region, new offices were opened in Tauranga, New Zealand; and Port Douglas, Hobart, and Perth, Australia.
About Sotheby’s International Realty
Sotheby’s International Realty was founded in 1976 as a real estate service for discerning Sotheby’s auction house clients. Today, the company’s global footprint spans 1,000 offices in 70 countries and territories worldwide, including 44 company-owned brokerage offices in key metropolitan and resort markets. In February 2004, Realogy entered into a long-term strategic alliance with Sotheby’s, the auction house operator. The agreement provided for the licensing of the Sotheby’s International Realty name and the development of a franchise system. The franchise system is comprised of an affiliate network, where each office is independently owned and operated. Sotheby’s International Realty supports its affiliates and agents with a host of operational, marketing, recruiting, educational, and business development resources.
Affiliates and agents also benefit from an association with the venerable Sotheby’s auction house, established in 1744. For more information, visit www.sothebysrealty.com.
The affiliate network is operated by Sotheby’s International Realty Affiliates LLC, and the company-owned brokerages are operated by Sotheby’s International Realty, Inc. Both entities are subsidiaries of Realogy Holdings Corp. (NYSE: RLGY), a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services. Both Sotheby’s International Realty Affiliates LLC and Sotheby’s International Realty, Inc. fully supports the principles of the Fair Housing Act and the Equal Opportunity Act.
You are only as good as your partners are, which is why we are in constant search of the best allies! Therefore, we are proud to announce our newest partnership! In the global market context, we have established a strategic collaboration with Andorra Affiliates, an alliance that goes beyond a frequent collaboration between companies to offer great advantages to our clients through exclusive new cross-marketing initiatives.
If you are interested in buying real estate in the Principality of Andorra, reach out to our team, and our professionals will guide you through the process!
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.
An invitation with the text “Everything Happened on the Square – Galerija Mala” in 1989 marked the beginning of a small yet important gallery in the heart of Zagreb.
At the very beginning, the gallery’s management stated that they would only present the most current production and contemporary art. Galerija Mala was one of the first private galleries in Croatia.
Located between Mala kavana and Ban cafe, Galerija Mala represents the cultural point of the northern side of the main Zagreb square. It acts as a sales gallery of works of Croatian authors and thus promotes Croatian art.
Photo credit: Galerija Mala
History of Galerija Mala
Opened just before the holidays, the gallery started working with the exhibition of Miroslav Šutej, a prominent and popular academic artist whose career was then at its peak. After the holidays, the gallery hosted presentations of the book “Zagreb before the beginning,” the Golden Bule facsimile, the new Zagreb postcards … Thanks to the attractive location, right next to Harmonica, the rich and always up-to-date program, Galerija Mala became an unavoidable place of cultural encounters. Social events are scheduled throughout the year, under the continuous and independent guidance of Mirna Hromatko Reiser.
The gallery space was formerly used by the publishing organization Mladost. For the needs of the gallery, space was rebuilt by the Architectural Design Institute of Zagreb. In just over 40 square meters, this gallery is home to many artwork and activities. For example, sales and promotion of paintings and graphics, fine plastic, art jewelry, bibliographic and art-related publications, graphic maps, and graphic sheets.
Simple and effective interior
The interior of the gallery is fascinating. The ground floor is dominated by a rock placed opposite the passage, so it’s intended to display paintings and graphics. The second rock is located opposite the entrance and decorated for shelves and showcases. It is suitable for exhibiting other works. The gallery’s central space has remained free so that visitors can see exposed works of art. Since 1989, space has kept all its essential features. It is always painted in neutral white, suitable for displaying all the artwork.
Photo credit: Galerija Mala
Gallery’s activities
Among many artists whose works were exhibited in Galerija Mala, it is hard to point up anyone in particular. Still, we will mention Nikola Reiser, Marijan Muljevic, Milan Steiner, Luj Logic, Stip Nobil, Vasko Lipovac, and Dimitar Popovic. Particularly noteworthy was the „Kravate“ exhibition, an authoring project by Andrew Seifried, also presented in Zadar and Dubrovnik.
The gallery also receives numerous inquiries from artists living and working in Europe, especially from Vienna, Ljubljana, Budapest, and Venice. One of the Gallery’s goals is to enhance and expand the cooperation with artists and raise the cultural and artistic level, not only of the Gallery but of Zagreb as one of the most interesting tourist European cities.
The Gallery can also boast of participating in numerous hotel and business interiors furnishing with artwork and graphics. Artworks can breathe a whole new life into our everyday living space and refresh it. The leadership of Galerija Mala recognized this a long time ago.
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.