According to the Foreign Exchange Act, all natural persons residing in the Republic of Croatia and natural persons who reside in the Republic of Croatia on the basis of their residence permit for a period of at least 183 days, with the exception of diplomatic and consular representatives of foreign countries and their families are considered residents.

If residents employed abroad or foreign nationals employed in the Republic of Croatia decide to purchase real estate in the territory of the Republic of Croatia through a loan, it is expected that they will encounter great obstacles during the process of realization of the home loan in case they do not have a credit intermediary to guide them through step.

Common problems

Common problems

The very first step, when choosing a commercial bank, is a great elimination. Most banks in Croatia either have credit lines created specifically for seafarers working on oil platforms and are employed by foreign employers who have offices in Croatia, or do not have such credit lines.

If a foreigner is able to find a bank that has a home equity line of credit for employees abroad, it is likely to encounter another obstacle. Almost all banks that have such a line of credit will seek a joint and several debtor, who does not have to be self-sufficient but must be a citizen of the Republic of Croatia.

If a persistent stranger manages to bypass this obstacle as well, they will find themselves in front of a third. Prior to the start of the home loan implementation process, the bank will in most cases require a transfer of three to twelve monthly benefits.

The question arises whether there are banks where it is possible to obtain a home loan without transferring a receipt or a joint and several debtors. There are banks where residents employed abroad and foreign nationals can realize a home loan without any complications. It is important to note that such clients can realize a home loan for the purpose of buying a property, but in case of an upgrade, renovation or the like, they need a joint and several debtors. If it is a purchase of an apartment under construction, the interest rate is 1% higher than the regular rate until the mortgage is entered into the loan and the final loan is placed.

Amount, term, interest, currency…


The realization of housing loans is possible up to a maximum of USD 250,000.00 in HRK equivalent at the middle exchange rate of the Croatian National Bank, with a repayment period of up to 20 years. Loans are most often approved with a currency clause in USDos and sometimes in US dollars. They are paid in kuna at the middle exchange rate of the Croatian National Bank on the day of the loan disbursement. Regular monthly obligations are payable in Croatian Kuna at the middle exchange rate of the Croatian National Bank on the day of payment.

The main security instrument is the real estate that the client buys, and creditworthiness is usually defined as 60 percent of the monthly income, which must amount to a minimum of HRK 15,000.00. It is also necessary to own 30% to 50% own funds, and given that the client does not receive a salary through the bank, the interest rate on such a loan ranges between 6% and 6.5%, and is somewhat less favorable in relation to residents. said Maroshi.

Insurance documentation and instruments


Recently, a form used by a loan seeker to authenticate abroad at his / her firm is used, and it contains all relevant information for assessing a client’s creditworthiness. It is important that the certificate is certified by a court interpreter. Foreign currency earnings statement for the last twelve months is also required. If a person is employed on a contract, a certified translation of that contract must be enclosed. A non-resident client employed in Croatia must also provide a statement of political exposure and a statement on the use of personal information.

In case of realization of a loan for which the client’s status is not obligatory, the client is obliged to open a foreign currency account with a commercial bank, to which, usually by foreign currency transfer, he transfers funds in the amount of an annuity from an account in a foreign country. The primary security instruments are a promissory note, promissory note and statement of acceptance of the forfeiture of receipts certified by a notary public. The bank registers a lien on the real estate and the principal amount of the loan and the real estate appraisal is in the ratio of 1: 1. In case the real estate appraisal does not meet the criteria, the bank has the right to request an additional security instrument such as a time deposit or life insurance policy.