Buying Property on the Island of Hvar

What could an idyllic island give you besides the perfect holiday? It could also give you the idea of owning a vacation home in the enchanting island. But before you make any hasty action in making such a big decision, you should know two important factors in buying a property. First you must know how easy it is to buy Hvar properties and what are the possible drawbacks of the property. mm.hr

As vacationers, wander through the scenic cobbled thoroughfares of the different stone towns in Dalmatia, real estate’s price in Croatia becomes a common point of discussion. One cannot help but imagine about owning and turning a seaside ruin property into a majestic home perfect for holidays. As Croatia’s premier island, it is not surprising that more prospective buyers are looking into owning a property in Hvar.

The Country’s Property Prosperity of 2004

Emerging from the aftershock of war in the neighbouring country Yugoslavia in 2004, Croatia was considered as the next real estate hot spot. Prices of properties were cut-rate and fortunes were amassed on Hvar Properties. Buyers from foreign countries came off the ferries and purchased anything they could afford. The hilltop locals sold off their hilltop properties turned into rubbles as meagre as 10,000 euros while those who owned prime coastal structures made a fortune in selling their properties. The case of the stone ruin on Rudine Peninsula, Mala Rudina, was sold 3 times. Each time the property was sold, the price increased by 100%. Although such is not a typical raise in price, it left the general level in prices in selling properties in 2004.

Practices in Buying Hvar Properties

When buying a property in any place, it is advisable that you get a competent lawyer. Property titles in Croatia are complicated since you may find your desired property is owned by more than 50 persons, a normal scenario when the original registrant died 50 years ago. You have to know that the most important document you need in buying a property in the country are these two:

Vlasnicki list or title deed which provides information on plot size and number, list of property’s charges or mortgages, and list of registered property owners.

Catastar map that identifies the plot.

It is a common practice to pay the usual 10% as deposit against a certified pre-contract and upon completion would be the balance. Before February of 2009, foreign purchasers must apply for a permit from the Ministry of Justice in owning Hvar Properties. But such restriction was lifted for members of EU as well as several American states.

Latent Drawbacks

Aside from title issues, you should consider these things when buying property in Croatia:

Properties constructed after 1968 must have usage permit aside from building permits to construct legally.

You have to check on the building permit since it must be registered for commercial use. Permits issued for residential use many years ago will nullify your license to build a property as there was a recent change in the law.

A thorough research on the land purchase must be made. Building lands are graded differently and building permits rarely granted. If it’s possible, you must buy Hvar properties where building permits are already granted.

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