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Immigrate to Croatia as a Pensioner
April 30, 2022
Are you planning to retire in Croatia? Well, you have made the best choice. Croatia is the best choice for all retirees across the globe. Today, to help our readers make a definite choice for retirement, we take a deep dive into a few facts about retiring in Croatia. Croatia has a high quality of life, low cost of living, great food and wine, healthy air and water, and many more facilities to make it the best place for retirees. Retiring to Croatia Is Croatia the best place for you to retire? It can be, or it can be not. Though, the place to retire depends on several factors. When looking for an ideal place to retire, you need to determine what you want from your retirement. Everyone is different, and so are their needs and wants. Also, if you are not a resident of the place, you will first have to opt for the residency. Is Croatia a safe country? Yes, Croatia is the best place for retirees to spend the rest of their lives and the safest place to live in. The rate of crime in Croatia is relatively low. Furthermore, pickpocketing is also less in the place, and you will not have to worry about anything. Though, if you are a traveler in the place, you will have to be cautious of the thieves. Tourists are easy targets for them, but they don't target retirees. Cost of living as a pensioner in Croatia As stated above, the cost of living in Croatia is relatively low, so as a retiree, you are not required to make huge money to live a social life. To live a life with access to all basic amenities, a retiree will make at least 650 euros every month. This amount will help you get a living in a decent apartment and a life free from loans and debts. However, if you can make some more money, 750-800 euros every month will help you live a comfortable life. Temporary residency permit Unfortunately, at present, Croatia doesn't offer temporary residence permits specifically to the non-EU retirees. This situation is kind of a tragedy for the retirees and the Republic of Croatia. The best part is that retirees readily pay into the system, and they don't compete for jobs. Even though it is beneficial, Croatia doesn't offer retirees much flexibility in opting for temporary residency. Though, it doesn't mean that you cannot retire in Croatia. There are a few alternatives away with the help; you can retire easily in this place. The options include: Stay by paying rent. Volunteering at the place. By buying a house in Croatia. Where to settle down in Croatia? You should know that the cost of living depends greatly on the place you decide to live. Hence, based on your budget, you should decide on the place. Some of the worth living places in Croatia are listed below. Zagreb: It is the capital city of Croatia and the biggest city in it. One of the most prominent features of this place is that you will find a dramatic difference between the old city and the new city. Even though it is the capital city, the cost of living in Zagreb is comparatively lower than in most other cities. Hvar: If you have always wanted to live on an island, Hvar is the best place in Croatia. It not only offers seaside living and neighborhood and a mild climate but is also coming up with a spot for the retirees. The city enjoys two major seasons. One is fishing, and the other is tourism. The cost of living is a bit expensive compared to Zagreb but lower than the other options. Rovinj: This place holds the first position for settling in Croatia. It has gained popularity recently with tourists and, therefore, ex-pats. Even though it is one of the most popular Croatian cities for tourists, you can have your peace and comfort during the rest of the year, while the summer may be a bit crowded. Buying a property in Croatia If you are retired and own a property in Croatia, then there are chances that you will be granted temporary residence. This kind of residence permit will allow you to stay in Croatia for six months every year. Though, when you go out to buy a property in Croatia, there are a few restrictions, and you will have to abide by them. A few rules for buying properties in Croatia are listed below; You are not yet allowed to buy any forest or agricultural land or the properties that are considered to be protected. However, foreigners will be allowed to buy agricultural land from 2023. Hence, you can even look for agricultural land plots for sale in Croatia. You will have to seek approval from the Ministry of foreign affairs before the sale of your property is finalized. The entire process can take almost 6 months. You can also rent out your property if you wish to, and this can be done through a company. However, some cost is associated with the process. Health insurance requirements There are several policies available in the Republic of Croatia through which you can choose to opt for health insurance. Also, it is compulsory in Croatia, and everyone should have it. People insured in Croatia are obliged to participate in healthcare costs for services that CHIF does not completely cover. The minimum amount for participation is 10.00 HRK, and the maximum amount can go up to 2,000.00 HRK against a single invoice. Taxes The local government collects the basic taxes as applicable, and in addition to them, they can also collect surtax. The surtax is collected based on the residence status of the taxpayer. Furthermore, the rate of VAT being levied in Croatia is different. That said, there are three rates; The standard rate is 25%, whereas the two reduced rates are 13% and 5%. The rates are applicable to different goods and services. The surtax charged by the government can also range from 0% to 18% in Croatia. The highest being charged in its capital city, Zagreb. The base on which the surtax is calculated is the amount of tax liability. FAQ Can I live in Croatia permanently? You cannot apply for a permanent residence in Croatia, as there are several rules and regulations for doing so, though you can opt for a temporary residence permit. On the temporary stay permit, you can easily stay up to one year in the place. Do I need a visa for Croatia? You don't need a visa in the Republic of Croatia to visit or stay at the place. You can freely travel to the place for up to 90 days in any 180-day period without a visa. This condition applies if you travel to the place as a tourist, for holidays, business, or to meet your family or friend, etc
Cost of living in Croatia
April 28, 2022
Croatia has been a country that has for centuries attracted visitors from all over the world, especially because of its deep blue Adriatic Sea, widespread beaches, and sunshine. This is how most people recognize it, however, Croatia has much more to offer. If you are looking into moving to Croatia, or you are simply curious about how the people live in this Mediterranean country, keep reading. About living in Croatia Croatians definitely enjoy the more relaxed pace of life, preferring the mindset of “work-to-live”, as opposed to the “live-to-work” mindset of Western countries. Its living standard has significantly grown since the country’s entrance to the European Union back in 2013. This is a country that offers relatively low living costs, but a high-quality life, which is why it's been recognized by digital nomads as a great base to explore the rest of Europe. If this sounds interesting, real estate for digital nomads in Croatia offers many options for your possible future residence. The average salary in Croatia is about 7,000 HRK (Croatian currency is kuna), although that might be overstretched for some families. Of course, location matters. Croatia is a small country, but there is a difference in living costs between the north and the south of the country. Buying a house or a property in Croatia Croatians are very dedicated to spending their hard-earned money on building or buying homes. This might not be such a crazy idea, considering the ability to buy a house with cryptocurrency in today’s world. Prices of buying a house or a property in Croatia vary based on the location. Sea-side homes in those big cities tend to be expensive, considering the potential of earning from them by renting to tourists is huge. However, houses in the countryside are a more affordable option. It is important to choose smaller towns that are still close to big cities since they will have better transportation access and connections to airports. Rent expenses In recent years, rent prices have gone up thanks to the country’s economic growth and tourism boom. If you are thinking long-term, it might pay off more to buy an apartment in Croatia rather than relying on monthly rent which is still increasing. The prices also vary depending on the season. In summer, rent is crazy expensive, compared to winter when the prices are reasonable. A large apartment in the centre of Zagreb costs between 5,000 HRK and 10,000 HRK per month. If you don’t mind enjoying the downtown area, you could find something for around 4,000 HRK monthly. The prices are similar in cities such as Split, Rijeka, and Dubrovnik, but smaller cities, especially up north, will get you a one-bedroom apartment for as low as 3,000 HRK. Utility costs Prices of utility costs greatly vary depending on your individual usage, and how many people are living in your household. If we consider paying for gas, electricity, water, and garbage fees, the price for two people will be around 800 HRK per month. This price will also depend on your heating system, how much you use air conditioning, etc. Groceries in supermarkets The cost of groceries depends on everyone’s eating preferences. In most cases, all of the cities will have a special farmers' market where you can get higher quality products, and the prices are not significantly higher than those in stores. Fruits and veggies that are in season are always more affordable. If we were to generalize it, the cost of food for two people per month would be around 2000 HRK. Now, this can change depending on if you prefer eating out, buying oat milk instead of regular milk, and so on. Restaurant costs The costs of eating out are pretty admirable in Croatia. The cost of a meal in a fast-food restaurant will cost around 50 HRK, while you can spend around 120 HRK in an average restaurant for a simple meal. A dinner for two will cost around 500 HRK, counting an appetizer, entrees, and drinks. Transportation Croatia’s cities are not huge, like Paris, New York, or Barcelona. They are walkable and easy to get around with bikes. Public transport is useful in bigger cities, so you might not even need a car. A 30-minute tram ticket in Zagreb costs around 4 HRK. City-to-city transport is best done by buses, and a one-way ticket from Zagreb to Zadar costs only about 100 HRK! Gas prices have gone up tremendously now, as in the rest of Europe. In normal times, you could expect around 11 HRK per litre of gas. Clothing and shopping Croatia does not offer many options for outlet shops or discount stores, but the prices stay the same as in the rest of Europe. A pair of Levi jeans will cost around 600 HRK, a summer dress can be bought for 200 HRK, and sports shoes cost around 900 HRK. There are many cheap-option stores with lower-quality items that are great if you need short-term things - such as a wedding guest outfit, or baby clothes. Nightlife - clubs and bars Croatia’s nightlife especially blooms in summer, when there are many festivals, the clubs have great DJs, and bars are filled with people. Tourist destinations tend to increase their prices, but you can always find those reasonably priced options. Typically, a cup of coffee costs around 10 HRK, a glass of wine starts at 30 HRK and a bottle of beer (0,5 L) costs 25 HRK. Cocktails come at around 60 HRK, depending on the type. Healthcare in Croatia Perhaps one of the best perks of living in Croatia is free healthcare! As well as free education, foreigners and locals enjoy free public healthcare. However, for most people, even private doctor visits will not cost you a lot! A private doctor visit will cost around 200 HRK at the most, and medication varies between 50 and 100 HRK. So, what can we gather from all of this? The average cost of living in Croatia varies depending on your location, lifestyle, size of household, members living in it, and season. This is the case in all other countries as well. Spending habits and personal experiences also have a say in this. We could round up the monthly living prices for 2 people at about 8 000 HRK. This includes rent, and if you are really struggling, you could make it with as low as 5 000 HRK per month. Now that we got that covered, how will you enjoy the rest of your expenses in Croatia?
The ban on the sale of agricultural land to foreigners is about to end
April 18, 2022
The Croatian embargo on the sale of land to the foreign citizens of the EU is about to end, and that can already be noticed by the interest of citizens, and the rising prices of properties. But, even though the prices are on the rise, they are still much cheaper than in the rest of the European countries. Croatian arable land is the cheapest in the EU The prices of agricultural lands depend on many different factors, from national legislation, regional characteristics, to the market power of supply and demand. Thus, for example, the average price of land in continental Croatia is 3,200€ / ha, but if you wish to purchase high-quality arable land the price might go up to 10,000€ / ha. In neighbouring Slovenia, the price for arable land is almost six times more expensive, and in Italy that goes up to 13 times more expensive. The Agricultural Land Trade Agency expects the price to increase by 100-200 euros per hectare in the coming years but notes that the agricultural land market is very unstable and depends on many predictable and unpredictable factors. The embargo is about to expire The embargo on the sale of agricultural land to foreigners is about to expire on June 23rd 2023., so many people are looking into buying agricultural land as soon as possible. Croatia has ensured a 7-year transition period in which it has maintained restrictions on the sale of agricultural land to foreigners, with the possibility of extending this period by another three years. The main reason to do so is to "protect the socio-economic conditions for agricultural activities after the introduction of the single market and the transition to a common agricultural policy in Croatia." The biggest novelty of the amendments to the Law on Agricultural Land is the state right of first refusal of land. The state or the line ministry will be obliged to inform the seller of the acceptance of the offer within 30 days of receiving the written offer. If the ministry does not respond within that period, the owner may sell the land on the open market, but not at a price lower than that offered to the state. Will the purchase of state land become a mass phenomenon? The Ministry of Agriculture said that the foreign citizens are most interested in areas over a thousand hectares, but there are no such vacant lands. In addition, the latest legal changes do not give up the right of priority, so the priority in buying the land remains to previous owners and the owners of bordering lands. Also, the rule that one buyer can buy a maximum of 50 hectares of state agricultural land in the continental area and up to five hectares in the coastal area, remains the same. It is yet to be seen if the purchase of state land will become a mass phenomenon in the upcoming year, but we are sure that buying a property in Croatia is a great investment, as the value of properties is on a rise
Real estate for digital nomads
April 15, 2022
Digital nomads are workers who use modern technology in order to work remotely. They are independent in terms of their work location, which is the biggest positive aspect of being a digital nomad. Some of the pros of living a digital nomad life, except for being able to work from anywhere in the world, is that you can tailor your life any way you want to and meet people from around the world (if you decide to travel while working). You won’t be hassled by traffic jams and you can be inspired by new environments every day. On the other hand, some cons of being a digital nomad are that you might experience an emotional burnout if you don’t make a clear working schedule. Also, if you decide to be in the freelancing business, you could face financial instability, as you depend on each job, which can affect your ability to invest in your own real estate. It is crucial to be well organized if you wish to become a digital nomad, as being in a beautiful location can often interfere with your deadlines. Who can resist being at the beach and sunbathing all day, right? Well, if you want to be a successful digital nomad, that’s exactly what you will need to do. Croatia offers so much for the digital nomad community: you will be living the best Mediterranean lifestyle, the climate is mild, the internet connection is optimal, and the healthcare is also good! Where can we find digital nomads in Croatia? The most popular locations in Croatia for digital nomads are the places on the Mediterranean coast, or the capital, Zagreb. It really depends on what environment you wish to live in. In Zagreb, you can expect somewhat hectic day-to-day life, as many bigger cities have, but at the same time, it is a gorgeous city with many events happening every day. You can enjoy the magnificent architecture, eat some of the most delicious food, and find many coffee shops that will make you happy that you live a life of a digital nomad. If you wish to live in a bit more relaxed environment, Dalmatia is the ideal choice for you. Cities like Split, Zadar, Šibenik and Dubrovnik are the most popular ones for digital nomads but don’t fret about trying living on an island like Krk or Brač. If you wish to buy a property, you will find many beautiful housings for a much lower price than in the rest of Europe, and you can make money out of it because tourism is pretty strong in Croatia. Types of digital nomad accommodation As we mentioned already, the percentage of digital nomads is increasing because more and more people decide to work remotely. There are different housing options digital nomads choose, and it depends on the length of their stay, as well as the style of the stay. Keep reading to find out all the housing options you have as a digital nomad. Short term apartment Short term rents are a great option if you’re looking to stay at one place for a month or more, and if you’re not interested in the networking side of the digital nomad lifestyle. If you desire to have total privacy, this option is perfect for you. Some pros/cons of renting an apartment is that these types of rentals are usually not very flexible. If you set a check out date, you probably won’t be able to extend your stay. Depending on the country you decide to live in, the prices may vary from cheap to expensive. Many apartments are usually too big for a single person, so it might get too expensive to live solo, but some might say, there is no “too expensive” when it comes to having peace of mind. In some cases, the prices of short-term rentals can get as low as the prices of a year-long rent, so make sure to thoroughly do your research before signing a lease. Co-living accommodation The digital nomad community is blooming, as there are co-living communities all around the globe. Co-living accommodation is an amazing opportunity to meet like-minded people and broaden your social network. This option makes it much more affordable to live in big cities such as New York, so it’s a good choice if you’re on a budget or wish to save a few bucks. Living in a digital nomad community is getting more popular and each year there are more cities that you can live in this way, but it’s still focused on major cities. Hotel Hotels are a good option if you’re planning a short stay, but if you’re planning to live in one place a bit longer, it could get a bit pricey. Another downside of renting a hotel room is that there is not much social interaction, so you might get lonely during your stay. On the other hand, you will find a hotel wherever you plan to stay, so you will have a lot of choices to pick from. Hostel Hostels are quite a popular choice for digital nomads, especially in places without a co-living option. They are usually in great locations and the community vibe is special. The facilities might not be suitable for digital nomads, as you will hardly find a quiet spot to work at, but you can always roam around town and find a secluded and peaceful place. Another possible downside of staying at a hostel is the internet connection. If many people are connected to a shared Wi-Fi, well, you can presume what happens. So, before booking a hostel, make sure to check if they have a good internet connection and if not, find out if there are places nearby you can work in. The most desirable features of digital nomad housing Now that you know all the housing options for your future nomadic lifestyle, let’s talk about features you need to look for before renting! First and foremost is the internet connection: make sure you will have fast and reliable internet access so you don’t get yourself in a situation where you’re unable to work. Another important factor is that you need a quiet, soundproof space for Zoom calls if you’re having them regularly on your job. It can be quite distressing trying to talk business while there is a lot of noise around you, both for you and the person on the line. And last but not least, unless you are an introvert, you should look for places where you can network and meet other digital nomads, as it can be a life-changing experience. You never know who you will meet and how that person can affect your life. How does remote work affect real estate? Since the pandemic, the world has taken a big turn. Many office workers switched to remote working, and that affected pretty much everything. Real estate is pretty much a business based on demand. As people switched from offices to homes, the demand for business buildings dropped. Also, people are looking more into living in the suburbs or closer to nature, especially because they no longer need to commute to work. The housing market is still in a good place, the only thing that changed is that more people are buying properties outside of the city. All of these changes will surely affect the future of real estate, especially the look of future offices. Also, the demand for homes with an office will experience an increase. On the bottom line, the world is changing and the way we live is changing also. And we think it’s a good thing that people are gaining more freedom and can choose where and how they want to work
Cryptocurrency is expected to revolutionize the future of real estate transactions
April 14, 2022
Can you buy real estate with crypto? The answer is YES! Let’s talk about all the options you have in terms of buying a property with crypto, as well as all the pros and cons. First, let’s start with the basic question: “What is cryptocurrency?”. Cryptocurrency is a digital or virtual currency secured by cryptography, impossible to counterfeit. This currency is decentralized and gaining popularity by the day. The most popular cryptocurrency is Bitcoin, but today there are many more available. As the world is constantly changing, so is the way we buy real estate. More and more real estate is being listed and sold with cryptocurrency, and it might be a good way to create a stable possession out of a somewhat volatile currency. There has been a buzz around buying and selling real estate with crypto, but it is getting more socially accepted each day. How to buy a home with cryptocurrency Before you buy a property with crypto, you need to watch out for some possible pitfalls. First, you need to be aware of the liability, the crypto value is unstable and no one can guarantee that the seller will go through with the deed after you make a crypto transaction to their account. Also, vendors and government entities do not accept crypto as a transaction, so you might get some additional costs that you need to research before buying a home this way. Another thing that you need to keep in mind is that the buyer in this case is not able to obtain title insurance, so he needs to assume liens or encumbrances against the property. With all of this in mind, you are probably aware that you need to do your research thoroughly before buying a house with crypto. Convert cryptocurrency to cash Converting the crypto to fiat currency (cash) is the simplest way to invest your crypto into real estate. You can use a service like BitPay in which you convert your crypto to cash, which you will use to buy a house. This way is also better because not many real estate listings accept crypto, but all of them accept cash. But, you need to keep in mind that after you convert your cryptocurrency into fiat currency, you will need to hold that money in your account for at least two months, because after two months that money is considered an asset that can be used to purchase a home. Taxing differs from state to state, so make sure to consult with your financial advisor before making the move. Borrow against cryptocurrency As cryptocurrencies become more popular, so do crypto loans. A crypto loan is similar to an auto loan, where you pledge an asset to secure the financing. The difference is, in this case, the asset is the cryptocurrency, in exchange for cash that you’ll pay back. In case of inability to repay the debt, the lender will liquidate or cash out the crypto. The problem with crypto loans is the unsteady value of crypto. But, as opposed to personal loans, crypto loans don’t require a credit check. Another issue with borrowing against crypto is that the interest rates can be higher and you have to stake twice the amount of Bitcoins, depending on the lender. Transfer cryptocurrency directly to the seller A buyer can transfer crypto directly to the seller, but as we mentioned in the “pitfalls” section of the article, it can be risky, and it can be difficult to find a seller that accepts cryptocurrency. But, as the cryptos gain popularity, more sellers are starting to accept the idea, which means more listings each day accept crypto. You’ll just need to dig deep! Pros of buying real estate with cryptocurrency There are many pros when it comes to buying a home with crypto. First and foremost, you have absolute privacy when making a purchase and the transactions are much faster. Another good thing is that you’ll convert a volatile or less stable asset into a more stable one, and you might even find a better deal than the ones you might find for fiat currencies. How is that, you might ask? Well, many sellers that are accepting crypto are offering discounts, as most of the sellers are likely crypto investors so they expect the value of crypto to rise. Cons of buying real estate with cryptocurrency There are cons to buying a property with crypto as well. Not many sellers are currently accepting crypto so you might have some trouble finding exactly what you want. Also, as the value of crypto is constantly changing, it might not be a good idea to “sit” on one listing until it drops the price, as the lower price might not mean less money if the value of crypto descends. Another thing worth mentioning is the complicated tax situation. Cryptocurrencies are unregulated, so you need to have good knowledge to avoid any visits from the IRS. Final thoughts We have to face it: cryptocurrencies are here to stay. And not only that, they are expected to grow and maybe one day all we have is crypto. With that in mind, it is a good idea to start learning about crypto so you don’t fall behind. Get informed and follow trends, because the importance of crypto is growing each day.
Croatia Gazettes Law Reducing Real Estate Transfer Tax
Dec. 31, 2018
The Croatian Official Gazette Nov. 30 published a law reducing the real estate transfer tax rate to 3 percent from 4 percent. The law enters into force and the new rate takes effect Jan. 1, 2019. [Croatia, Official Gazette, 11/30/18] sources: https://news.bloombergtax.com/daily-tax-report-international.... https://narodne-novine.nn.hr/clanci/sluzbeni/2018_11_106_2060.html
Financial Times - Split is number one world heritage site to live in
Feb. 28, 2014
The 10 most alluring world heritage sites to live in: 1. Split, Croatia, inscribed 1979: live in the remains of an ancient Roman palace. 2. The Stone Town of Zanzibar, Tanzania, inscribed 2000: Swahili trading port that time passed by. 3. Bruges, Belgium, inscribed in 2000: great food in romantic medieval streets. 4. Old Havana, Cuba, inscribed in 1982: gently decaying bohemian charm. 5. Campeche, Mexico, inscribed 1999: beguiling fortified colonial port on the Caribbean. 6. Venice, Italy, inscribed 1987: so famous it hardly needs to be a world heritage site. 7. Carcassonne, France, inscribed 1997: medieval fantasy, but beware tourist blight. 8. City of Bath, UK, inscribed 1987: elegance, sophistication and shopping. 9. Medina of Marrakech, inscribed 1985: more shopping, in old-world Arab centre. 10. Macao, China, inscribed in 2005: east meets west in cosmopolitan port. source: http://www.ft.com/....
Acquiring property - EU citizens
April 27, 2011
On 5 December 2008, the Act on Amendments to the Act on Ownership and Other Real Rights was adopted, which has equalized citizens and legal persons from EU Member States with domestic persons by removing from the current Act special assumptions (reciprocity and consent of the Minister of Justice) for acquiring the right to real property ownership in the Republic of Croatia (article 60/2 SAA). Therefore, when the Amendments to the Act enter into force on 1 February 2009, the citizens of the European Union Member States will acquire the right to real property ownership in the Republic of Croatia under the same condition as domestic persons. (Concerning persons who are not citizens of EU Member States, but who plan on acquiring real property in RC, reciprocity and consent of the Minister remain as assumptions which must be fulfilled in order for a person to acquire real property) Procedures which have been motioned by citizens of EU Member State for acquiring real property ownership in the RC, but have not been completed by a final decision before the Act on Amendments to the Act on Ownership and Other Real Rights has entered into force, will be discontinued by official duty. Legal transaction which was concluded before the Act on Amendments to the Act on Ownership and Other Real Rights has entered into force, has the aim of acquiring the right of real property ownership in the Republic of Croatia which a citizen or legal person from the EU Member States has concluded as the acquisitor, is considered valid if the general assumptions have been fulfilled for the validity of that legal transaction and if the legal transaction is completed (convalidation – retroactive enforcement of the Act on Amendments) .