Buying Your First Property in Zagreb
A step-by-step guide: budget, loan, district, viewings, contract and handover.
Buying your first property in Zagreb feels like one big step, but it is really a series of smaller decisions that happen in a certain order. If you keep to that order, you avoid the most common mistakes: falling for an apartment you cannot finance, signing a preliminary contract without checking the documentation, or forgetting costs that turn up near the end. This guide by Hermes Nekretnine, based at Vlaška ulica 45 in Zagreb, takes you through the process step by step.
The guide is written for a buyer going through a purchase in Croatia for the first time, so with each step we also explain why it matters, not just what to do. If any part remains unclear, contact us and we will go through it together on the specific example of your situation.
Before you open a single listing, talk to a bank or a mortgage broker and establish how large a loan you can realistically get given your income and existing debts. Banks generally require a deposit of fifteen to twenty per cent of the price, plus money for the purchase costs. Only once you know the upper limit does it make sense to choose a district and a property type. We offer help comparing offers from several banks through mortgage brokerage.
Alongside the price of the property, when reselling an older apartment you pay real estate transfer tax of three per cent, notary fees, the cost of the bank valuation, the loan processing fee and the agency commission. For a new build, instead of tax you pay VAT included in the price, but the cost of fitting out the apartment follows. For an average apartment in Zagreb these extra costs easily reach five to ten thousand euros, and for a new build the cost of the kitchen, flooring and built-in units considerably more. Add all of this up before you decide how much you may spend on the property itself. A detailed breakdown is in the guide Property taxes in Zagreb.
Take a simplified example. If you have 60,000 euros in savings, part of that money goes on purchase costs, say 8,000 euros, leaving 52,000 euros for the deposit. With a deposit of twenty per cent, that means a property of about 260,000 euros, of which the bank finances the remaining 208,000 euros with a loan. Check whether the instalment on such a loan is sustainable by comparing it with your current rent and with what is left of your monthly budget after all fixed costs. If the instalment is more than about twenty per cent higher than the rent you pay now, consider a cheaper property or a longer repayment term.
A wrongly chosen location cannot be fixed by later refurbishment, so choose the district by your daily routine: the distance to work, school, public transport and the amenities you use. Compare prices and the character of districts on the Real estate by location page and in the individual guides for Trešnjevka, Trnje and Maksimir.
First-time buyers most often choose between a studio, a one-room and a two-room apartment, depending on budget and plans for the next few years. If you are planning a family, a two-room apartment is the safer choice because it resells more easily. An overview of the market by type is on the Apartments in Zagreb and Houses in Zagreb pages.
At a viewing do not just look at the layout and condition, but ask about the level of the reserve fund, any building debts, the energy rating and, for older buildings in the centre, the status after the 2020 structural inspection. Check whether the apartment is a separate ownership unit and whether the physical situation matches the land registry. The orientation of the apartment and the daylight through the day are the factor that most affects daily life later. If possible, come to a viewing twice, once during the day and once in the evening, to hear the level of street noise and see how parking works in the district.
Once you agree on the price, a preliminary contract is signed with a deposit, usually ten per cent of the price. The preliminary contract sets the deadline for concluding the main contract, the method of payment and the terms under which the deposit is returned or retained. Do not sign the preliminary contract before the land registry status of the property has been checked.
After the preliminary contract the bank sends an appraiser who determines the value of the property. If the valuation is lower than the agreed price, the bank approves the loan on the lower value, so you have to cover the difference from your own funds. That is why it helps to have an indicative valuation before the preliminary contract.
The main sale contract is signed and certified at a notary. After payment of the purchase price, the real estate transfer tax is filed and the registration of the new owner in the land registry is started. We can handle this entire administrative part for you through administrative and legal services.
At handover the electricity, water and gas meters are read, the keys are handed over and a record of the condition of the property is signed. Register the change of owner with the energy distributors and the co-owners' association so that from that point the bills are in your name. We also recommend taking photographs of the meter readings and the space right after moving in, in case of later disputes.
With a housing loan you choose between a fixed interest rate for the whole repayment period, which is usually slightly higher but gives certainty because the instalment stays the same, and a combination of a fixed rate for the first few years and a variable rate afterwards. For a first-time buyer still putting together a household budget, a predictable instalment over a longer period is often worth more than a slightly lower starting rate. Through mortgage brokerage we compare both options on specific figures for your amount and term.
Alongside a deposit of fifteen to twenty per cent of the price, count on purchase costs not covered by the loan, which together often means around twenty-five per cent of the price in cash.
Prices are hard to predict, and the rent you pay while waiting is also a cost. Tie the decision to your own readiness and borrowing capacity, not to guesses about the market.
You can, but with a first purchase the biggest risk is a gap in checking the documentation and the contract. An agency takes on that part and aligns all the parties in the transaction.
For simple purchases the notary and the agency cover what is needed. For more complex situations, such as co-ownership or inheritance, we also recommend a lawyer.
From finding the property to moving in usually takes two to three months, provided the documentation and the loan are in order.
Banks look at this case by case. A permanent contract makes approval easier, but with a sufficient deposit and a clean credit history a loan is possible on a fixed-term contract too, sometimes with a co-borrower.
Continue to all the guides, property taxes, a property valuation and buying consultation.