Purchase and sale of agricultural land in Croatia for foreigners

Purchase and sale of agricultural land in Croatia for foreigners can be a challenging process, as a thorough understanding of the applicable regulations is essential for a successful transaction. This article provides a basic overview of useful information for the purchase or sale of agricultural land in Croatia for citizens of EU member states.

Purchase and Sale of Agricultural Land in Croatia for foreigners – Basic Legal Framework

The Law on ownership and other real rights governs the acquisition of ownership of real estate in the Republic of Croatia by foreign nationals, placing them in a different legal position compared to Croatian citizens and legal entities based in Croatia.

Property of Interest to the Republic of Croatia

Agricultural land is considered a property of special interest to the Republic of Croatia and enjoys special protection. Consequently, the Law on agricultural land excludes the possibility of acquiring ownership rights over such land, except in cases of inheritance based on the principle of reciprocity, in accordance with international treaties or specific regulations. This exclusion applied equally to citizens of EU member states and legal entities based within the EU, as well as to nationals and legal entities from third countries (non-EU countries). This legal arrangement was not aligned with the EU acquis, and Croatia was obliged to eliminate this exclusion upon joining the EU. Until July 1, 2023, the acquisition of ownership rights over agricultural land by legal entities and nationals of EU member states in Croatia was prohibited, with the moratorium delaying such acquisitions.

Purchase and Sale of Agricultural Land in Croatia for foreigners – End of the Moratorium

Upon the expiration of the transitional period stipulated by the Act of Accession to the European Union, Croatia permitted the free purchase of agricultural land by legal entities and nationals of EU member states from July 1, 2023. Their legal status was thereby equated with that of Croatian citizens and legal entities based in Croatia. In other words, from July 1, 2023, all nationals of EU member states and legal entities based in EU member states can acquire ownership rights over real estate, including agricultural land, under the same conditions as Croatian citizens and legal entities based in Croatia.

Right of First Refusal by the Republic of Croatia

It should be noted that the Republic of Croatia has the right of first refusal in the case of the sale of agricultural land exceeding 10 hectares in the continental area and more than 1 hectare in the coastal area, as well as for agricultural land previously acquired from the Republic of Croatia.

Acquisition of ownership rights – Registration in the land register

Ownership rights are acquired by registration of the right in the land register upon the proposal of the acquirer, provided that all documents meeting the general and specific prerequisites for registration, as prescribed by the Law on land registers, are attached to the proposal.

Applications for land register entries in the Republic of Croatia can only be submitted electronically through a lawyer or a notary public.