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Real estate law

Energy certificate in the sale and rental of real estate

An energy certificate shows the energy performance of a building or of a separate part of it. A separate part may be a flat, an apartment or business premises. The certificate is issued for a building or a separate part for which energy must be used to maintain indoor climate conditions in accordance with the intended use of the space. The certificate is issued by an authorised person on the basis of an energy audit and is valid for ten years from the date of issue. When must the owner obtain it? Under the Act on Energy Efficiency in Buildings, the owner...

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New Law on Legalization

The amendments to the Act on the Treatment of Illegally Constructed Buildings once again open the possibility of submitting applications for legalization, that is, the legalization of certain illegally constructed structures. It is important to distinguish two things: the law does not allow new illegal construction and does not legalize everything that was built without a permit. It primarily concerns old structures that existed by 21 June 2011 and that satisfy the prescribed conditions. What does legalization mean? In this context, legalization means the subsequent legalization of an already constructed building or part of a building. If, for example, a house, garage,...

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Energy and real estate: three typical risk situations

As of 1. 1. 2026., the new Energy Efficiency Act applies, noting that certain provisions will enter into force on 1. 1. 2027. (Art. 43(6)–(8)). Although this is primarily a statute setting public policies, measures and instruments, its practical impact is clear: energy efficiency is increasingly finding its way into your decisions and contracts, whether you are selling, leasing, renovating or financing a property. Energy costs and the predictability of consumption have already become part of value and risk assessments, and documentation that previously passed on trust is now increasingly subject to formal checks. In practice, the risks most often...

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Real estate investments after 1 January 2026: key changes under the new ZPU

As of 1 January 2026, the new Spatial Planning Act applies, and the previous act has been repealed. Although at first glance it may seem like a technical statute for planners and public administration, the changes are very concrete for investors and landowners: faster and more digital procedures, clearer deadlines, a stricter regime on the coast and in tourism, and mechanisms that can unblock projects that have been stuck for years due to infrastructure. One of the biggest changes is a full shift towards digital planning. Spatial plans are prepared and adopted in the information system through ePlanove, and the decision...

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New Building Act and Faster Permits

As of 1 January 2026, the new Building Act is in force. In official announcements it has been emphasised that obtaining building permits should be significantly faster, with communication and monitoring of procedures through digital systems (eDozvola). In practice, for years the most time was lost not on design, but on waiting for various statements: special conditions and connection conditions (electricity, water and sewerage, transport, municipal infrastructure, etc.). The new Act is drafted so that this part of the procedure becomes predictable: it introduces deadlines, accountability and, most importantly, clear consequences when deadlines expire. The central novelty is in Article 48 of...

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Liability for legal defects in contracts

In addition to material defects under a contract of sale, the seller is also liable for legal defects. Legal defects are governed by Article 430 of the Civil Obligations Act and arise when a third party holds a right over the subject of the contract that excludes, reduces, or limits the buyer's right—provided that the buyer was not informed of this right and did not agree to accept the item encumbered by it. The seller guarantees that the right being transferred exists and that there are no legal obstacles to its fulfillment. 1) The transaction is made for consideration; 2) The defect existed...

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Croatia and OECD membership: new property ownership regime

The Republic of Croatia is in the final phase of joining the Organisation for Economic Co-operation and Development (OECD), an international organization aimed at promoting economic development and global trade. Becoming a member of the OECD brings a series of reforms in various areas, including legislation related to property ownership. A key focus is on the rights of citizens from other OECD member states regarding property purchases in Croatia. Liberalization of the real estate market for OECD Citizens JOne of the key requirements for OECD membership is the further liberalization of the economic and legal system, including easier access to the real...

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Real Estate Valuation

The valuation of real estate in the Republic of Croatia is regulated by the Real Estate Valuation Act, which was enacted on July 3, 2015, and has been in force since July 25, 2015. The valuation of real estate must be conducted with the diligence of a competent expert, taking into account all available evidence to ensure that the result is sustainable upon verification. Real estate valuation is used in property transactions, determining the value of collateral objects, property insurance, dissolution of co-ownership communities, investment and property value enhancement matters, encumbrance and depreciation issues, land development procedures, urban land consolidation, expropriation, and...

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Obligations of real estate lessors in Croatia

Given the rich tourism industry, which represents 1/5 of Croatia’s GDP, the owners are making the most of their properties by putting them in profitable use by short term rentals to tourists during the season. This article aims to present the methods of registration, taxation and administration for getting the most from the tourist lease. The Law on the hospitality provides simplified requirements for small lessors, who can offer the following domestic hospitality services: rooms, apartments or vacation houses leasing services, with the capacity up to 20 beds; camp leasing services with the capacity up to 10 units, but no more than 30...

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Real estate tax

Croatia, with approximately 3.87 million inhabitants, has over 2.4 million housingunits, including 600,000 unoccupied ones and 231,000 holiday homes. These figuresand the issue of long-term housing availability have prompted the government todraft a new Real Estate Tax Act. The primary aim is to reduce the tax disparitybetween income earned through labor and rental income, as rental income has sofar been taxed more favorably. This act, part of a broader tax reform, focuses onencouraging investment in productive sectors rather than solely in real estate. Thegoal is for this tax to completely replace the holiday home tax. Key changes The first change involves the...

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