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The Position of UK Nationals in Legal Property Transactions in the Republic of Croatia After Brexit

posted 4 years ago

According to the Article 358 a of the Ownership Act of the Republic of Croatia, foreign citizens and legal persons from a country which is part of the EU, in legal transactions relating to real-estates in Croatia, are equal to Croatian citizens/legal persons when it comes to the conditions which need to be fulfilled in order to acquire a real estate in Croatia. On the other hand, third-country citizens and legal persons (outside EU) can acquire real estate on the Croatian territory only if the reciprocity principle is met and if the Croatian Minister of Justice gives his approval for such legal transaction.

UK nationals and legal persons before the Brexit could easily acquire real estates in Croatia under the same conditions valid for Croatian nationals/legal persons did not need approval of the Croatian Minister of Justice. Apart from that, what is common for all foreign citizens, regardless of their origin (EU or not), is that UK nationals cannot acquire property on excluded locations in order to protect the interests of the Republic of Croatia, agricultural plots, protected parts of nature as well as woods and woodland areas.

After Brexit happened and UK has left EU formally on 31 January 2020, the transitional period started on 1 February 2020 and shall last until 31 December 2020

Namely, in this transitional period, UK citizens can acquire the right of ownership of real estate in the Republic of Croatia under the conditions valid for the acquisition of property rights for Croatian citizens/legal persons (except real estate in exempt areas) and still do not need the consent of the Minister of Justice to acquire property rights. 

However, after the expiration of the transitional period, UK nationals and legal persons shall acquire land only based on the reciprocity which still has to be determined between UK and Croatia. 

Also, one special rule which applies for the citizens and legal persons of the Swiss Confederation might also be a precondition for the UK nationals. Namely, Swiss citizens, when entering their ownership right to the land registry of the competent municipal court, have to prove they have obtained a temporary residence permit in Croatia, while Swiss companies have to prove the land will be used only for business purposes connected to the registered activities of the company in question.

ODVJETNIČKI URED | LAW OFFICE
ANJA JURŠETIĆ
Kruge 48, 10 000 Zagreb | HR
OIB: 45784480218 | MB: 80572308
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Erste&Steiermarkische bank d.d., Rijeka, Jadranski trg 3a
T: +385 99 481 73 73 | E: [email protected]
W: www.odvjetnica-jursetic.hr

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