From February 2009, foreign buyers will be able to purchase property on the same terms as local Croats, although forests and agricultural land are excluded from the agreement. Previously, it was difficult for foreigners to secure permission to buy a property.

Over the last nine years, authorities have only granted just over 3,500 applications from potential foreign buyers. Since over 8,000 applications were received in the last two years alone, it is clear that the success rate in purchasing a property in Croatia was not high. In addition to the need to secure permission from the authorities, it was required that Croatian citizens have the reciprocal right to purchase property in the would-be buyers home country.

This right included the US, UK and most of Europe - buyers from elsewhere could only purchase property by forming a company, with its attendant bureaucratic requirements, an option which was also open to those from countries offering reciprocal rights to Croatians.

Chintan Mahida, global property analyst at Nubricks.com, said: “The move to make buying Croatian property easier for foreign purchasers is bound to have repercussions for the national property market, and bring greater foreign interest especially with expectation that Croatia to become a member of the European Union at some point in 2011.”

Source: http://www.property-investor-news.com/