Amendments underway regarding acquisition of real estate ownership by foreign nationals

At the 44th session of the Government, State Secretary Ivan Crnčec presented novelties from the scope of the Ministry of Justice, Public Administration and Digital Transformation, including proposed amendments to the Act on Ownership and Other Real Rights

In order to meet the criteria for accession of the Republic of Croatia to the Organisation for Economic Co-operation and Development (OECD), it is necessary to amend the Act on Ownership and Other Real Rights in the part relating to the acquisition of real estate ownership in Croatia by nationals and legal persons from OECD member states or acceding countries to the OECD Codes of Liberalization of Capital Movements and of Current Invisible Operations.

The draft proposal for the Act envisages that the contracting states of the European Economic Area, OECD member states or acceding states to the Code of Liberalisation of Capital Movements and the Code of Liberalisation of Current Invisible Operations acquire the right of ownership of real estate under the same conditions as Croatian nationals and legal persons with a registered seat in Croatia.

"For the acquisition of real estate ownership in Croatia, citizens and legal persons from the above-mentioned countries will no longer need the consent of the minister responsible for justice, under the assumption of reciprocity. The exception which remains refers to the acquisition of ownership rights over agricultural land", underlined the State Secretary.

"It is important to mention that out of the 38 OECD member countries, 22 are Member States of the European Union, while out of the remaining 16 reciprocity has been established for 14 of them and for 2 verification of reciprocity is underway. Likewise, for the 7 countries in the process of acceding to the Codes, 2 are Member States of the European Union, for 3 we have reciprocity and for 2 reciprocity is being verified", he said, adding that the Act would not exclude the possibility of adopting measures justified on grounds of public morality, public order or security, health protection, as well as measures necessary for the protection of essential security interests and measures necessary to maintain international peace and security.

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