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Post by Erin on Feb 28, 2004 20:58:30 GMT 1
I saw a programme 'Place in the Sun' on TV recently and saw some fantastic places.
They said something about a ministry having to give approval and not being able to do work outside for a year.
Cann you explain this?
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Post by Peter Ellis on Mar 1, 2004 21:01:15 GMT 1
Hi Erin
Sorry we are a bit slow replying. I thought I'd replied to this but it seems to have disappeared.
As a foreigner, you need to get an approval from the Ministry of Foreign Affairs (MFA) if you buy in your own name. It is actually a confirmation from the MFA that you are from a country where there are reciprocal arrangements for buying property. Brits and Irish, for instance, allow Croatians to buy property there, so are, in turn, allowed to buy property in Croatia. Australians and Swiss can only buy if they have a permanent resident status, because that is what is demanded of Croatians in their countries.
Once you have this approval, you can present it to the Land Registry and get your new property registered in your name. The Land Registry won't allow a foreigner to register without it. Once that is done you have completed all the foirmalities.
The outside work was another matter. Whilst you can usually use your new property once you've paid for it, even while you are waiting for the MFA to come through, doing anything that needed planning permission, for instance on the outside of a traditional building under civic protection, is not possible until you have completed everything with the MFA.
12 months would be a lot in Istria but I know that in places like Korcula things are much slower, so I guess 12 months is possible down there.
Some parts of Croatia are much more efficient than others.
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Post by yeslehc on Dec 12, 2004 12:28:32 GMT 1
Hi Peter, we ought on the islands, 15 months ago, and have just been informed it will be another month before we get the permission ( that probably means 2 months) we have constantly been chasing them and been given numerous excuses, the latest being they have been blown out by the amount of applications. Do you know of anyway to fast track applications ??  |
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Post by Peter Ellis on Dec 15, 2004 13:27:07 GMT 1
Hi
Not really. The islands are always problematic. The proportion of property down there with paperwork problems is particularly high. Much of it stems from the fact that it was traditionally a very poor area, from which people were the most likely to emigrate in search of a better life. If they subsequently inherited property it left difficulties if contact with them had been lost. Very little is computerised there which doesn't help either.
If you have waited this long, you are probably not far off!
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Post by Marker on Jan 9, 2005 21:31:34 GMT 1
I have bought a house in Hvar island. It's in north side, not far from Jelsa town. 50meters from sea, around 100mq. Prices are getting high and i m not sure that it's already a deal to buy something here.... anyways, Croatia is nice and I belive that it's tourism has big potenciality to grow up. about Hvar - www.sunnyisland.infoBye, Marker  |
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rusty
New Member
Posts: 2
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Post by rusty on Jan 21, 2005 17:04:51 GMT 1
Hi Erin Sorry we are a bit slow replying. I thought I'd replied to this but it seems to have disappeared. As a foreigner, you need to get an approval from the Ministry of Foreign Affairs (MFA) if you buy in your own name. It is actually a confirmation from the MFA that you are from a country where there are reciprocal arrangements for buying property. Brits and Irish, for instance, allow Croatians to buy property there, so are, in turn, allowed to buy property in Croatia. Australians and Swiss can only buy if they have a permanent resident status, because that is what is demanded of Croatians in their countries. Once you have this approval, you can present it to the Land Registry and get your new property registered in your name. The Land Registry won't allow a foreigner to register without it. Once that is done you have completed all the foirmalities. The outside work was another matter. Whilst you can usually use your new property once you've paid for it, even while you are waiting for the MFA to come through, doing anything that needed planning permission, for instance on the outside of a traditional building under civic protection, is not possible until you have completed everything with the MFA. 12 months would be a lot in Istria but I know that in places like Korcula things are much slower, so I guess 12 months is possible down there. Some parts of Croatia are much more efficient than others. Hi Peter, This is an interesting topic, which seems to grow and grow. Time can be an issue if there is uncertainty as to the outcome! Im sorry if the following ??s have already been asked and answered, but can you please advise.... 1. Does the MFA ever refuse to recognise a purchase made by an individual from a country with a reciprocal agreement in force? 2. If so, under what conditions (a couple of examples to hit it home) 3. If so, can the now purchased property be transfrerred to the CroCo (croatian company) ownership channel. 4. If not what happens to the title and ownership of the said purchased property. 5. If MFA approvals are forthcoming and the title goes through to land registry - at what stage of this time consuming process does the 3 years of ownership start in order to reduce capital gains liability against selling. Looking forward to your response - and Im sure it will be quicker than MFA!! Rusty  PS. sorry about the double message - I forgot to log on first time!  |
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Post by Peter Ellis on Jan 21, 2005 22:44:54 GMT 1
Hi Rusty
Refusals do occur if the documentation is inadequate in some way. They can also refuse if you have a criminal record.
Our Pre-Contracts are usually claused that if a refusal should occur, the vendor is obliged to sell at the same price and on the same terms to a Croatian company that the buyer will establish.
The CGT waiver commences 3 years after the validation of the contract and this validation dates from the time the MFA approval is given. Note that if a Croatian company is used to buy property, the contract will be valid immediately it is notarised as no MFA approval is relevant.
Please also note that although you may escape CGT here in Croatia, you may still have a liability for it in, say, the UK, if you notify the UK tax authorities of your interest in the property.
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