Hypothec (mortgage) has become possible in Croatia for a luxury project in Umag area

Special hypothec offer for financing purchase of apartments/villas is offered to the buyers of new 5**** star properties in Umag area new luxury resort.

This is a super-luxury destination in Kempinski and Skiper resorts neighbourhood just a few km from Slovenian border, overlooking Piran Bay and Slovenian coast.
Beach is 200 meters from the resort, a concession for exclusive use is being obtained. Beachline with wooden sundecks will be arranged.

Estimated date of construction completion is June 2022.
Exceptional infrastructure of the resort will include:

concierge service 24/7
wellness and spa centre
rooftop infinity pool
gym studio
rooftop fine-dining restaurant with amazing panoramic views
garden pool
garden restaurants and cafes (Italian cuisine restaurant, Steakhouse, etc.)
pools, playgrounds and other amenities for children
18-hole golf-course

Mortgage/finance in issues upon the following conditions stated below.

For individual private persons/buyers

Hypothec can be issued to the residents of EU who have incomes in EU currency.

Term of credit: max 30 years
Payment: by monthly installments (credit and interests)
Own capital: min 30% of property value
Collateral: pledge of real estate, loan up to 70% of collateral value
Account opening in Slovenia with regular inflow is obligatory
Timing: loan is issued after own capital is paid, after account with appointed bank is opened, after usage permit for purchased property is received.

Interest rates can be fixed or variable:
fixed rates
1-10 years – 1,7%
11-20 years – 2,1%
variable rates
1-10 years – 6m Euribor + 1,35%
11-20 years – 6m Euribor + 1,50%
21-30 years -6m Euribor + 1,60%

Cost and fees:

approval fee: 980 eur
notary costs
appraisal – free

Documents required:

passport copy
certificate of employment
statement of income for 2019, 2020
statement of indebtedness
bank statement of account
additional documents can be required

For corporate buyers

Mortgage finance can be provided to Croatian or EU company.

Term of credit: max 12 years
Payment: by quarterly equal credit installments
Interest rate: 6mEuribor +3%, quarterly interest payment

Own capital: min 30% of property value; 50% in case of SPV founded for the purpose of purchasing real estate and renting out the property is the only income
Appropriate creditworthiness required and cash flow.
Collateral: pledge of real estate, loan up to 70% of collateral value or 50% in case of SPV
Account opening in Slovenia with regular inflow is obligatory (or SPV account).
Timing: loan is issued after own capital is paid, after account with appointed bank is opened, after usage permit for purchased property is received.

Cost and fees:

approval fee: 0,5%
management fee: 0,1% once a year on outstanding loan balance
notary costs
appraisal – free

Please, do not hesitate to make an inquiry.

Other news

Realty market trends, legislation novelties, taxations updates, immigration challenges

Sunday, May 19, 2024 - 15:11

Cost of living comparison – Croatia vs Austria in 2024

Basing upon Numbeo.com data we have compared living in Croatia with some other destinations. Here is the comparison of Vienna in Austria vs Split in Croatia. We conclude that it is better to earn in Vienna and spend in Croatia where the cost of living is way lower.

Moratorium on buying agricultural land by foreigners in Croatia is lifted

Saturday, April 29, 2023 - 18:48

The moratorium on buying agricultural land by foreigners in Croatia has been lifted

The moratorium on EU physical persons and companies buying agro lands in Croatia was not prolonged from July 1st, 2023. It means that EU private and corporate buyers got an opportunity to buy agricultural properties in Croatia. For many years it was neessary to form a local Croatian company for that purpose and maintain it. Now local company formation will no longer be needed. This news is exciting for commercial real estate buyers as it opens up a whole new world of investment opportunities within the country. With an abundance of fertile soil suitable for farming or ranching activities, there are plenty of possibilities when it comes to investing in agricultural land in Croatia – from vineyards to olive groves and beyond! Lifting this ban also allows foreign investors access into one of Europe’s most rapidly growing economies which could potentially lead them towards lucrative financial gains over time if their investments prove successful. In fact many experts believe that removing this restriction could have long term benefits not only for those who wish to invest but also for local farmers who may benefit from increased competition within their industry leading towards better prices paid out per crop yield etc....

Tuesday, April 18, 2023 - 20:20

Can foreigners buy real estate in Croatia?

Yes, foreigners can buy property in Croatia especially if they reside inside of the EU/EEA. Starting from 2009, the citizens of all EU/EEA Member States are eligible to buy a property in Croatia of any type under the same conditions as Croatian citizens. In this case, there is no concept of the «first» and «second» home with related expenses. There is no annual property tax in Croatia. There are also building lands in free unrestricted sale. As for the acquisition of agricultural land by foreigners, there is a moratorium on their acquisition until the summer of 2023. However there is a 90% chance that this moratorium will be lifted on July 1, 2023. Not only individuals, but also legal entities can purchase real estate in Croatia. If the buyer finds it appropriate, it is possible to establish a Croatian company and purchase real estate on it. Pay attention to the permissible building factor! In 2004, a decree on the protection of the coastal zone came into force: it states that within 70 m from the coastline construction outside settlements is prohibited, and in the range up to 1000 m more stringent requirements are imposed on construction activities.

Tuesday, March 21, 2023 - 19:52

Second home for German and Austrian property buyers in Croatia

As the modern real estate market continues to expand, buyers from Germany and Austria are increasingly looking for a second home in Croatia. With its crystal clear sea waters, stunning beaches, quaint villages and rich cultural heritage, this country has become a popular destination for Germans and Austrians in search of an idyllic getaway. In particular, for such buyers there are several factors that make buying property in Croatia particularly attractive. Firstly, Croatian legislation offers a significantly lower taxation for property owners compared to other European countries, which also applies to non-residents of the country. This means that German and Austrian investors feel more at ease when choosing a property here. Secondly, due to its location in the European Union (EU), citizens of EU member states such as Germany and Austria have easy access to own and manage their property in Croatia within hours of driving on excellent highways without having to go through difficult bureaucratic procedures or obtain special permits or visas in advance. Finally, while this is not necessarily limited to German and Austrian buyers, it should also be noted that property prices in Croatia remain fairly low compared to many other European countries, making it an ideal...

Year 2022 real estate sales summary for Croatia

Thursday, December 22, 2022 - 19:05

Year 2022 real estate sales summary in Croatia

Year 2022 was unique and more than successful for real estate market in Croatia. Demand for Croatian properties was deferred for 2 years due to COVID-19 and all those buyers who were waiting for the abolition of restrictions flooded Croatia starting in February 2022. It was triple demand in comparison with all the previous years in all the categories of real estate. Rural villas in mid-Istria suddenly became the best-sold product, along with newly built apartments in the Zadar area. Krk Island was another magnet for the buyers of modern flats and traditional houses. By the end of the summer, the market of already built properties offered for sale was already almost empty. The Sellers could expect properties to be sold within 1-2 months and the speed of desision making was amazing. It was a Seller-market, the Sellers were aware of that and started to rise the prices for 5-10% weekly. Looking at the scenery after the battle for properties we can say that during last year prices rose 80-100%, i.e. they doubled for 80% of properties. Cheap apartments below 100,000 eur are presently non-existent products. The average price for a 2-bedroom apartment is starting now from 200,000 - 250,000...

Thursday, September 2, 2021 - 15:48

Drastic rise in property prices in Croatia in 2021

The Croatian real estate market has never had such a hurricane demand as in 2021. Real estate buyers have flooded the country since April this year. There are 3-4 times more people who decided to become the happy owners of Croatian real estate than in 2019. One of the reasons was isolation and lack of travel in 2020, which led to a surge in consumer energy a year later. Another reason was rising inflation and negative bank rates, pushing EU buyers to seek the undervalued real estate market - and the Croatian market was the closest and easiest choice. The most popular format in 2021 was an Istrian detached villa with a pool up to 350,000 eur, which could even be 10 km from the sea. In second place are villas on the first line up to 1-1.5 million euros (mainly in Dalmatia). The third place was shared by land plots by the sea (almost all existing proposals were sold out) and 2-3-room apartments within walking distance from the sea up to 200,000 - 250,000 eur. A new trend has been identified - people are now trying to be more isolated. Previously, no one looked at remote islands with abandoned...