What is the return on investment  in 5 years? According to predictions by World financial institutions, an increase of 200-300% in Croatian real estate value may occur in the next few years. Over the next ten years, growth in Croatia's Travel & Tourism Demand is expected to average 6.9 % per annum. This growth would exceed, by nearly 50 per cent, the expected worldwide growth of 4.5 % per annum and, by nearly 66 %, the 4.2 % annual average growth predicted for the European Union. How is the tax situation? Croatia has signed double taxation treaties with most European countries including Ireland and the UK, so you will not be liable to pay double tax. VAT is currently set at 22%.  There is a real estate transfer tax set at 5%, this shall be paid by the buyer and must be included in the sales contract. What happens in case a property/house is sold by the 1. Individual:   If the property/house is sold 3 years prior from the purchase date, the tax base is the difference between the purchasing price and selling price. If the property/house is sold three years after the purchase date, you are exempted from paying tax. 2. Company:    If the profit remains in the company there are no other taxes, however if the owner wants to have the profit in cash, then the profit will be regarded as income and one is obliged to pay income tax on the profit which is 15% of the total profit.  We can provide you with a firm that manages all company issues on your behalf. When is it expected that Croatia joins the EU? Croatia optimistically plans on entering the EU in 2007; however there is assurance for a 2009 acceptance.    Am I able to secure financing in Croatia? With a Croatian company financing should be no problem, but for private individuals it is extremely difficult. When is the Motorway scheduled to be finished? The motorway Zagreb - Split has basically been completed already, the only remaining parts to be finished are 2 small connection points that will be completed by June 2005 at the latest. What is the political situation in Croatia? The political situation in Croatia is no different from any other European country.  Major political and economic reforms have promoted stability and open markets, this has contributed to the short-term stimulation of growth. What are the advantages of buying through a Croatian company? Buying through a Croatian company, you do not require a specific permit issued by the government which takes at least 6 months if you want to acquire something.  To setup and form a limited liability Croatian company an attorney files all the necessary documentation required, you will nominate the shareholders and the contributed capital is set at 20,000 KN, however this money can be used and reclaimed once its deposited to the company account.  This procedure normally takes between 4 and 6 weeks, and the costs for this setup is amount to approximately EUR 2000 minus the initial working capital. However, if you wish to purchase the property privately as a foreign national you will need to obtain this permit from the Ministry of Foreign Affairs.  Although it is possible to complete the final purchase while waiting for the documentation in progress; it is simply a formality which, unless you have an adverse history in Croatia, will not be refused.   DISCLAIMER All information and terms published by Deep Blue Croatia is subject to change without notice.  Irrespective of any measures taken by Deep Blue Croatia to ensure the information contained within this brochure is accurate at the time of publication, Deep Blue Croatia disclaims and will be exempt from liability in respect of any/all of its contents.