INVESTMENT IN AGRICULTURAL LAND IN CROATIA
The Republic of Croatia has approx. 3.200.000 ha of agricultural land – 65 % of that land is private property and 35% is public property. However, only 1 200 000 ha of that land is in use (approx. 1/3rd of overall agricultural land in Croatia), from which 1 000 000 ha in continental Croatia and 200 000 ha in Adriatic region.
It is possible for both natural and legal persons to lease agricultural land; however it can be leased out only to the persons performing agricultural activity. The annual lease rate amounts approx. 300 to 2000 Kuna per ha. On the other hand, the initial annual price for public land is around 200 to 700 Kuna per ha, which is significantly lower than the price of private land. The most expensive ones are those in Slavonia, since that is the best quality land.
Agricultural land owned by the Republic of Croatia can be sold only according to the Program of use of agricultural land owned by the Republic of Croatia. Agricultural land is usually managed by local self-government i.e. the City of Zagreb.
Foreign legal and natural persons cannot acquire ownership of agricultural land, except as heritage (for natural persons). However, foreign legal or natural person, if she/he wants to invest in development of agriculture in Croatia and therefore wants to buy agricultural land, is able to register a company in Croatia. This company is then able to buy agricultural land in Croatia.
It is hard to determine an exact price applicable on all agricultural land in Croatia, but approx. price would be around 3.000,00 to 5.000,00 € per ha.
Considering the amount of agricultural land in Croatia and its price, foreign investors are able to develop agricultural production by investing in existing farms, and through long-term leases or sale of agricultural land. The main advantage here is that Croatia has fertile, chemically and biologically unpolluted land, and exiting climate conditions are almost ideal concerning temperatures and the amount of rain.