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Buying a Property in Croatia

The right for foreigners to buy and own property in Croatia is based on reciprocity, in that Croatians must be allowed to own property in the country where the foreigner wishing to buy comes from (this is therefore not an issue for most European countries including the UK. The same applies for the USA). There are two ways to purchase property in Croatia.

1. Foreign buyers can buy in their own name in which case they have to get permission from the Ministry of Justice to buy which can take up to a year. The fact that it can take up to 12 months to get approval from the Ministry of Justice does not actually mean you can't go ahead and purchase property in the meantime as it's possible to buy property and apply afterwards. If permission is not granted then the buyer may resell or transfer ownership of their property. Permission is normally a formality as long as the reciprocity agreement exists.

2. They can set up a Croatian Company to buy the property, therefore avoiding the need to apply for permission from the Ministry of Justice.
Those wishing to purchase with the aid of a mortgage would also need to set up a company (loan value up to a max of 70%).

Tourism

Tourism in Croatia is a well-developed industry as Croatia is an attractive tourist destination, particularly because of its extensive coastline and well-preserved coastal Renaissance towns. In 2005, Croatia had 10 million tourist visitors. The interior of the country, with the exception of the capital Zagreb, the erstwhile Baroque capital Varaždin and a plethora of medieval castles, has fewer tourist attractions. Eight areas in the country have been designated national parks, and the landscape in these areas is afforded extra protection from development.

Several companies run flotillas of yachts along different stretches of the coastline, which is also popular with divers.

The country is currently being advertised under the motto The Mediterranean As It Once Was.
National Geographic Adventure Magazine named Croatia as Destination of the Year in 2006.

Tourist regions

The Croatian Tourist Board has divided Croatia into eight distinct tourist regions plus the capital city:

Tourist map of Croatia
  1. Istria The peninsula of Istria has the best tourist infrastructure in Croatia. Its west coast has several historical towns dating from Roman times, such as Poreč (Euphrasian Basilica) and Pula (Amphitheater), surrounded by large hotel complexes, resorts, camps and sports facilities. The interior is quieter, very green and wooded, with dozens of tiny stone towns perched on hills, such as Motovun. The island group of Brijuni is a site of luxury tourism.
  2. Kvarner & Highlands This is probably the most varied region. The entire Kvarner gulf provides striking sceneries, with tall mountains right next to the sea, overlooking a dozen large islands. Tourist resorts range from Opatija and Lovran, with their feel of Austro-Hungarian imperial decadence, to the former Venetian island towns of Rab and Lošinj. The interior regions Gorski kotar, Velebit and Lika have vast stretches of virginal nature, with mountain peaks, forests and fields, many animal species including bears, and the national parks of Plitvice Lakes and Risnjak.
  3. Dalmatia - Zadar This region is a yachting paradise. The Kornati National Park has hundreds of mostly uninhabited islands. Aside from Zadar, a Roman town with many monuments, there are many smaller coastal resorts. The interior has mixed plains and mountains, with the impressive Paklenica canyon as the main attraction. The island of Pag has one of the biggest party zones in Europe in the town of Novalja.
  4. Dalmatia - Šibenik This is another popular yachting region, dotted with islands, and centered around Šibenik and its famous cathedral. The interior has the Krka National Park with its waterfalls and religious monasteries, and the city of Knin with its medieval fortress and archeological remains.
  5. Dalmatia - Split The large islands of this region, which such pearls as the town of Hvar or the resort of Bol, would be its main attraction if there was not the city of Split, the second biggest city in Croatia, and its unique Roman heritage, the Diocletian's Palace. There is also the excellently preserved coastal town of Trogir, which boasts of over ten churches, a cathedral, palaces and a fortress.
  6. Dalmatia - Dubrovnik Probably the most famous Croatian site, the fortified city of Dubrovnik is a breathtaking sight, but the region has numerous attractive islands, ranging from the historical Korčula to the untouched forests of Mljet.
  7. Central Croatia The most interesting part of this large region is the north, with the old city of Varaždin and the hilly area of Zagorje, dotted with castles and spas. The Marian shrine of Marija Bistrica is the largest and most notable pilgramage spot for the faithful in the entire country. The south has some natural highlights, such as the nature park Lonjsko polje, where it covers the area of the former Nazi Jasenovac concentration camp. The southwest area is known for its forests and wilderness, especially. Baroque churches are found readily throughout the area, along with other cultural architecture. Much rebuilding is being done in the areas destroyed during the Croatian war of independence.
  8. Slavonia Tourism in this region is just developing, mostly with spas. The area of Baranja has the national park of Kopački rit, a large swamp with an incredible variety of fauna, especially birds. The cultural center is the historical city of Osijek, with other notable cities being Đakovo and war-torn Vukovar. Gastronomy specialities are popular, with traditional Slavonian wines and cuisine being a unique part of the region.
  9. Zagreb Like Prague or Budapest, Zagreb has a Central European feel to it, with a large and well-preserved old town on the hill and a 19th-century city center. The Croatian capital is also the country's largest cultural center, with many museums and galleries.

Croatian Tourist Board
Iblerov trg 10/IV
10 000 Zagabria
Tel. +385 1 46 99 333
Fax +385 1 45 57 827
E-mail: info@htz.hr

Economy

The Croatian economy has a stable functioning market economy which is one of the most advanced of South-Eastern Europe. International Monetary Fund data shows that Croatian nominal GDP stood at US$50.053 billion, or US$11,271 per capita, in 2007. The IMF forecast for 2008 is US$54.950 billion, or US$12,374 per capita. In purchasing power parity terms, total GDP was US$69.866 billion in 2007, equivalent to US$15,733 per capita. For 2008, it is forecast to be US$74.419 billion, or US$16,758 per capita.

According to Eurostat data, Croatian PPS GDP per capita stood at 57.5 per cent of the EU average in 2007, and is forecast to reach 57.8 per cent in 2008. Real GDP growth in 2007 was 6.0 per cent. The average gross salary in 2007 was 6,634 kuna per month. In 2007, the International Labour Organization-defined unemployment rate stood at 9.1 per cent, after falling steadily from 14.7 percent in 2002. The registered unemployment rate is higher, though, standing at 14.7 percent in December 2007.

In 2007, 7.2 percent of economic output was accounted for by agriculture, 32.8 percent by industry and 60.7 percent by the service sector. According to 2004 data, 2.7 percent of the workforce were employed in agriculture, 32.8 percent by industry and 64.5 in services.

The industrial sector is dominated by shipbuilding, food processing and the chemical industry. Tourism is a notable source of income during the summer, with over 10 million foreign tourists in 2006 generating a revenue of €8 billion. Croatia is ranked as the 18th most popular tourist destination in the world. In 2006 Croatia exported goods to the value of USD$10.4 billion (FOB) (US$19.7 billion including service exports).

Of particular concern is the backlogged judiciary system, combined with inefficient public administration, especially issues of land ownership and corruption. Another main problem includes the large and growing national debt which has reached over 30 billion dollars. The country has been preparing for membership in the European Union, its most important trading partner. In February 2005, the Stabilisation and Association Agreement with the EU officially came into force.

Transport

Croatia has an extensive rail network, although due to historical circumstances, the Istria region is not accessible by train without passing through neighbouring Slovenia. Train services are operated by Croatian Railways (Croatian: Hrvatske željeznice).

Major airports are located in Zagreb, Zadar, Split, Dubrovnik, Rijeka (on the island of Krk), Osijek, Bol, Lošinj and Pula. Croatia Airlines is the national airline and flag carrier. An extensive system of ferries, operated by Jadrolinija, serves Croatia's many islands and links coastal cities. Ferry services are also available to Italy.

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