We\u2019re often asked about how you can get a <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/overseas-mortgages\/" target="_blank" rel="noopener noreferrer">mortgage for a property abroad<\/a>, in particular how to get a mortgage in Croatia. The process can vary between countries but the key considerations are largely the same. If you want to take out a mortgage in Croatia, then it is possible, but you\u2019ll first need to be aware of what\u2019s involved, including potential risks.\r\n\r\nThe good news is that we work with expert mortgage advisors in this area who are experienced in recommending a mortgage for a property in Croatia.\r\n\r\nIn this article, we\u2019ll be covering the following:\r\n<ul>\r\n \t<li><a href="#can-you-get">Can you get a mortgage in Croatia?<\/a><\/li>\r\n \t<li><a href="#what-is-the-process">What is the process of getting an overseas mortgage for Croatia?<\/a><\/li>\r\n \t<li><a href="#the-tax-considerations">The tax considerations you need to be aware of<\/a><\/li>\r\n \t<li><a href="#why-using-an">Why using an international broker is recommended<\/a><\/li>\r\n \t<li><a href="#potential-risks-to">Potential risks to buying in Croatia<\/a><\/li>\r\n \t<li><a href="#can-i-get-a">Can I get a buy to let mortgage in Croatia?<\/a><\/li>\r\n \t<li><a href="#croatia-mortgage-crit">Croatia mortgage criteria including credit issues<\/a><\/li>\r\n \t<li><a href="#why-you-should">Why you should speak to an expert<\/a><\/li>\r\n<\/ul>\r\n[feefo-banner]\r\n<h2 id="can-you-get">Can you get a mortgage in Croatia?<\/h2>\r\nCompared to other European countries, in Croatia there are more considerations around mortgage lending, but the answer to this question is \u2018yes\u2019 nonetheless.\r\n\r\nIt\u2019s worth noting that the type of mortgages available in Croatia is more limited than those in other European countries. As with all <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/complete-guide-to-mortgages\/">mortgages<\/a>, you\u2019ll also need to meet the criteria of the lender, which we\u2019ll explain more about later in the article.\r\n<h2 id="what-is-the-process">What is the process of getting an overseas mortgage in Croatia?<\/h2>\r\nGetting a mortgage in Croatia should start with you enlisting the help of an <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/overseas-mortgages\/international-mortgage-broker\/">international broker<\/a> who has knowledge of the country, and we work with experts who fit that bill. Secondly, you\u2019ll need to appoint an independent solicitor, ideally someone based in the UK who is fluent in Croatian or otherwise you\u2019ll also need a translator.\r\n\r\nAfter that, expect to follow this process:\r\n<h3>Property reservation<\/h3>\r\nOnce you\u2019ve found your property and have agreed a price with the seller you need to put in a \u2018reservation.\u2019 This is regarded as your commitment to buying the property. Your solicitor will assist with this procedure.\r\n<h3>Preliminary contract<\/h3>\r\nBefore you sign the final contract you\u2019ll need to sign a \u2018preliminary contract.\u2019 This will make the agreement between the buyer and seller official and at this stage you could be asked to pay your initial 10% deposit. Terms and conditions will also be finalised too.\r\n<h3>Permit<\/h3>\r\nAll foreigners who buy a property in Croatia need to obtain a permit from the Croatian Ministry of Foreign Affairs. This is largely regarded as a formality, however it can take a while. In some instances, it can take up to two years for your permit to come through. However, you don\u2019t need to wait for it to complete the sale.\r\n<h3>Completion<\/h3>\r\nBoth you and the seller will be required to sign the contract. It will also be signed by a publicly employed solicitor (known as Notary) whose role it is to ensure your property is registered on the land register. As this stage you\u2019ll also need to pay any outstanding fees\r\n<h2 id="the-tax-considerations">Tax considerations<\/h2>\r\nBudgeting for a property purchase is an important aspect of buying as you\u2019ll need to release funds at various stages.\r\n\r\nUpon completion of your property purchase in Croatia, you\u2019ll need to pay the following...\r\n<ul>\r\n \t<li>Legal fees<\/li>\r\n \t<li>A property transfer fee<\/li>\r\n \t<li>The fee for your permit application<\/li>\r\n \t<li>A fee for your Notary and possibly their translator, as well as<\/li>\r\n \t<li>A fee to the land registry<\/li>\r\n<\/ul>\r\nThe overall total of these fees could be around up to 7.5% of all your costs.\r\n\r\nIt\u2019s worth remembering that fees don\u2019t stop here. Depending on where you buy in Croatia you may be asked to pay an annual Holiday Property Tax - this is something your solicitor should flag to you in the initial stages of purchase.\r\n\r\nPlus budget for translators. If you\u2019re not fluent in Croatian yourself you\u2019ll need to see all paperwork, planning consents, agreements, contracts and documents in English and this process will incur translation charges.\r\n<h2 id="why-using-an">The benefits of using an international broker<\/h2>\r\nHaving an independent broker will mean you have someone who can help you navigate the process of getting a mortgage in Croatia. They\u2019ll have local and cultural knowledge, will know about eligibility criteria and can give you the best advice for your circumstances, recommending the mortgage provider that best matches your needs.\r\n\r\nThe good news is that we work with <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/overseas-mortgages\/international-mortgage-broker\/" target="_blank" rel="noopener noreferrer">overseas mortgage brokers<\/a> with expert knowledge of the Croatian market. They can offer bespoke advice to customers who are buying in the territory and connect you to the right lender for your needs and circumstances.\r\n\r\n<a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-an-overseas-specialist">Make an enquiry<\/a> to speak with a Croatian mortgages expert today.\r\n<h2 id="potential-risks-to">Potential risks to be aware of when buying in Croatia<\/h2>\r\nCroatia is still a relatively new country. It only became independent in 1995 and joined the EU in 2013, so it\u2019s regarded as an emerging economy. In this respect, it\u2019s considered less stable than in other parts of Europe. So, while there is a government-approved policy in place to buy property in the country, they have less experience of the process than other nations do, which is why you may come across hurdles such as delays.\r\n\r\nHere are some other considerations:\r\n<h3>Land ownership<\/h3>\r\nLand ownership in Croatia is still unclear in some places, so it\u2019s crucial that the history of the land you want to buy is fully researched before you commit. You may not receive your government permit if you can\u2019t prove it isn\u2019t already owned by someone else.\r\n<h3>Loan amount<\/h3>\r\nMortgages for foreigners tend to be more modest than those that are available to Croatian nationals so you may have to invest more of your own capital.\r\n\r\nSome borrowers consider <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/remortgages\/remortgage-guide\/">re-mortgaging<\/a> property they already own in the UK in order take out a new mortgage in Croatia.\r\n<h3>Currency, exchange and interest rates<\/h3>\r\nOne of the key considerations, when you\u2019re buying abroad, is that your money and property price will be affected by fluctuations in the local currency as this is the currency you\u2019ll be purchasing in. To buy property in Croatia you\u2019ll need a bank account there too.\r\n\r\nBear in mind that interest rates may also be affected by local fluctuations and if exchange rates change drastically it can affect the affordability of a property.\r\n\r\nIf they fluctuate by more than 20% your lender should inform you. It may in this instance be possible to pay back your mortgage in a different currency so that you don\u2019t fall behind in payments.\r\n<h3>Land<\/h3>\r\nIf you intend to build on the land you must find out what planning permission and permits are required. It can be difficult to find title deeds and relevant certificates when you\u2019re dealing with authorities abroad. You also need to check that there\u2019s no mortgage already assigned to the land.\r\n\r\nBe aware too that as a foreigner you\u2019re not usually permitted to buy agricultural or local forest land or any that is protecting cultural monuments.\r\n<h2 id="can-i-get-a">Can I get a buy to let mortgage in Croatia?<\/h2>\r\nBuy to let mortgages in Croatia are possible however as part of the mortgage criteria you need to prove you can pay for the property yourself. You won\u2019t be considered if your figures are calculated by using the suggested income from the rent you\u2019ll receive. You need to prove that you can buy the property without relying on renting it out.\r\n<h2 id="croatia-mortgage-crit">Croatia mortgage criteria including credit issues<\/h2>\r\nBefore you\u2019re granted a mortgage in Croatia you\u2019ll need to show that you meet the required criteria, summarised below.\r\n<h3>Employment status<\/h3>\r\nIn order to be approved for a mortgage in Croatia you\u2019ll have to show six months of payslips from your current employer alongside six months of bank statements, and show what your general day-to-day outgoings are.\r\n\r\nIf you\u2019re <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/self-employed-mortgages\/">self-employed<\/a>, you\u2019ll need to provide two years of accounts that have been properly audited, the previous year\u2019s tax return and 6-12 months of bank statements.\r\n<h3>Age<\/h3>\r\nCroatian mortgages tend to have more limitations than those you can find in the UK as there are fewer providers. One of the common criteria is that mortgages aren\u2019t normally available if you\u2019re over the age of 65.\r\n<h3>Credit issues<\/h3>\r\nEvery mortgage provider has different criteria but as there are less lenders in Croatia (most of them are banks) there are more limitations. If you have credit issues don\u2019t let this be a deterrent. Your international mortgage broker is the best person to speak to about your case as they will know lenders in Croatia and what their specific criteria is around a <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bad-credit-mortgages\/how-to-get-a-mortgage-with-bad-credit\/">bad credit mortgage<\/a>.\r\n\r\n<a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-an-overseas-specialist">Make an enquiry<\/a> and we can refer you to one of our experts who can assist you.\r\n<h2 id="why-you-should">Want to know more? Speak to one of the Croatia mortgages experts we work with<\/h2>\r\nBefore you make a decision about purchasing a property in Croatia, speak to an expert who can fully explain the risks and the current situation in the country including economic and political climate.\r\n\r\nLike most mortgages, every assessment is based on your individual circumstances and an expert will take these into consideration when they offer you advice.\r\n\r\nIf you have questions about how to get a mortgage in Croatia and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-an-overseas-specialist">make an enquiry<\/a>.\r\n\r\nOnline Mortgage Advisor works with credited advisors who can find you an expert broker who understands the market and already knows the lenders.\r\n\r\nSo sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. We don\u2019t charge a fee and there\u2019s absolutely no obligation or marks on your credit rating.