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The meaning of life in Croatian

Croatia stands out among the States that once were part of Yugoslavia
01.09.2012
Author: Dinara Grachev
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Croatia is preparing to join the European Union, the first among the former Yugoslav republics. But even in light of this fact, there is no reason to hope for a huge increase in the value of real estate. The Croatian Adriatic is not for speculators – but for those who know and love the resorts of Istria, Kvarner, Dalmatia well.
The picturesque Adriatic coast, excellent ecology, mild climate, high level of safety, developed infrastructure and unique yachting opportunities – all this is about Croatia. Against the background of the states that were once part of Yugoslavia, it stands out as the most developed in terms of tourism.

Residents of Italy, Slovenia, Austria, and Germany come to Croatia to relax. It takes only an hour and a half to get from the Slovenian border to Pula by car, and three hours by high–speed boat from Venice by sea. There are many regular and charter flights between Russia and Croatia, the flight takes about three and a half hours.

Croatia will probably join the European Union in 2012. In this regard, experts expect prices to rise in the country's real estate market, which is not developing too fast, but consistently and efficiently. "Croats do not seek to sell everything in their country, to build up the coast with multi–storey complexes and elite resorts – just to earn more," says Ekaterina Kolotilina, head of the Moscow representative office of Punat Projekt. In fact, nothing is prohibited to foreign buyers in Croatia, but the relatively complicated procedure of buying and registering real estate is a kind of barrier that weeds out foreign speculators.

How to buy
At the moment, based on article 356 of the law "On Property Rights and other proprietary Rights", a foreign individual can buy apartments or a house with a plot, but not land without buildings. However, Russians can do this only after receiving official permission, which they have to wait at least a year. "Therefore, citizens of the Russian Federation are forced to register legal entities in Croatia, in which they become founders and directors. This is a standard and proven procedure that takes no more than a month. The amount of the authorized capital is 20,000 kuna (2,720 euros), notary fees and other registration fees are added to this – 700-1000 euros," says Elena Nevskaya, Client Relations Manager at Adrionika. Although this will require a minimum of effort from the client, it is necessary to provide in advance for monthly expenses of at least 100 euros, which will be used to pay for the services of a professional accountant.

"But in Croatia there is no annual property tax," says Ekaterina Kolotilina. – The tax in the amount of 5% of the contract value is paid at a time after the purchase of the object." It is also important that the company is not "sleeping": real estate acquired by a legal entity should, for example, be leased to relatives.

Other rules apply to individuals and legal entities of the European Union. Since January 1, 2009 they can freely purchase any objects real estate in Croatia directly. "This measure was designed to stimulate the influx of buyers from the European Union, but it did not cause a strong upturn in the market. However, this means that a Russian who owns a European company can act as a buyer of real estate for his legal entity without restrictions," says Elena Nevskaya.

There was no crisis
"The national desire for harmony is well traced in today's post-crisis real estate market: there has never been such a boom as in Montenegro, and therefore there has not been a global price drop. Therefore, against the background of a certain decline in the market, unique areas are actively developing, and liquid products are appearing," Yulia Titova, Rentsale's CEO, analyzes the situation.

If we talk about specific figures, the price correction for October 2010 in Croatia averaged 5.6% per year. At the same time, different types of real estate show different dynamics. "So, the average cost per square meter of a house by the sea now stands at 1,546 euros, which is 1.6% higher than last year, while the cost per square meter of seaside apartments decreased by 3.3% and amounted to 1,863 euros. The price is also influenced by the region – the cost of apartments on the north coast (regions of Istria, Lika Senj, Primorsko-Goranskaya Zhupania) amounted to 1,722 euros per 1 sq. m, and in Central and Southern Dalmatia - 2,024 euros per 1 sq. m.", – summarizes Ekaterina Kolotilina.

Istria and Dalmatia
All regions of Croatia are attractive in their own way. Istria and Dalmatia enjoy traditional success among Russians, primarily due to their active promotion by tour operators. These destinations account for the majority of travel packages, and they are usually the first to be seen by Russians in Croatia.

"Istria, a green rural area bordering Slovenia and as close as possible to Italy, belonged to the Italians before the war. The climate here is very comfortable, it is never painfully hot in summer, and at the same time the sea is quite warm here," Elena Nevskaya shares her impressions. The most popular areas of the Istrian peninsula are the suburbs of Pula: Medulin, Lizhnyan, Fazhana, Shtinyan. Their great advantage is the proximity to the international airport in Pula.
Rovinj is very interesting, an amazing city, known as the "Croatian Venice". Porec, Novigrad and the northernmost city of the peninsula, Umag, are no less beautiful. "The Skipper residence is in great demand in Umag. It is a gated complex with apartments and villas, with a private beach, swimming pool, restaurant and golf complex. Duplex apartment with an area of 84 sq. m. They will cost 200,000 euros," says Marianna Simonenko, customer relations manager from Russia and Ukraine at the Croatian real estate agency Alma.

Many Russians are interested in real estate in the city of Opatija in the northeastern part of Istria. There are both Austro-Hungarian villas and beautifully preserved mansions of the Napoleonic era. Some of them are for sale, however, for considerable sums. In 99% of cases, Opatija is chosen by people who are looking for exclusive real estate. One of the more affordable options is a 250 sq. m house. m with a large plot a few kilometers from the city for 370,000 euros.

Dalmatia is a more southern region compared to Istria, the climate is warmer here, and the sea views are simply magnificent. The most famous and picturesque resorts in the region are Zadar, Trogir and the adjacent island of Ciovo, Split, the islands of Brac (which was among the top ten places to relax in the world) and Hvar, the Pelesac peninsula and, of course, the famous Dubrovnik. Everywhere the mountains come very close to the coast, which undoubtedly has a special charm.

Real estate in Dalmatia is on average more expensive than on the north coast. "It is not surprising that there is a large selection of first-class facilities here. 20 km from Dubrovnik, in the harbor on the Pelesac peninsula, for 2.2 million euros you can buy a stone villa near the sea. This is a 360 sq. m. house. m with its own marina, lobster pool, custom furniture and interior design," says Ekaterina Kolotilina.

The largest residential project in the vicinity of Dubrovnik is the Dubrovnik Sun Gardens complex in Orasak, on the territory of the Radisson Blu Resort and Spa. According to Yulia Titova, the cost of the apartments starts from 200,000 euros, the price includes full furniture and equipment of the premises.

Although, on average, Croatian real estate is somewhat more expensive than in Montenegro, the idea that Croatia has entirely high prices for resort housing is incorrect. For example, near Split, you can buy a one-bedroom apartment with an area of 43 sq. m. m for only 65,000 euros, and the cost of individual houses starts from 150,000 euros. The scheme with the purchase through the company also has its advantages – the presence of a Croatian company gives an advantage to the applicant for a residence permit.

Croatia is a completely European and at the same time a quiet country. There is no hustle and bustle, noisy southern bazaars, onlookers loitering in search of adventure. Croatia is perfect for those who are tired of the race familiar to the metropolis – sometimes it seems that admiring the local sunsets, you can learn the meaning of life.

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Discussion
marelica
The presence of a Croatian company does not give an advantage in obtaining a residence permit, as it is a prerequisite.
If you are only a "summer resident" in Croatia, then the company may be "sleeping".
And Croatia is not the first of the republics of the former Yugoslavia, which is going to join the European Union. Slovenia has been in the European Union for a long time.
23 of Sep 2011, 16:21:38
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