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Jul 14, 2006

The laws are neutral
between landlord and tenant


Rents: Can landlord and tenant freely agree rents in Croatia?

There is no rent control.

Deposits

There is no maximum deposit. One or two month’s deposit is customary.

What rights do landlords and tenants have in Croatia, especially as to duration of contract, and eviction?

The length of contract is open to agreement between landlord and tenant. There is no standard length. If the tenant leaves during the contract, he owes money for the remaining period of the contract. But it is difficult to recover the money, so standard practice is to write in the contract that he must give 30 days notice.

Croatia Dubrovnic residential properties

At the end of the contract the tenant has to leave automatically, without need for the landlord to give notice But it is common to stipulate in the contract one month’s pre-termination notice in the contract for both sides.

Tenants do not acquire security of tenure.

Foreigners can only rent out through a company, which involves paying 22% VAT, which can however be accounted as a business cost.

The rental reported to the Croatian Tax and Revenue Authorities cannot be below rents paid for city and state properties in the area.But those rents are for controlled tenancies, with sitting tenants, i.e., their rental levels are very low.

EVICTION FOR NON-PAYMENT OF RENT

Duration until completion of service of process 60
Duration of trial 180
Duration of enforcement 90
Total Days to Evict Tenant 330
Courts: The Lex Mundi Project

How effective is the Croatian legal system?

Evicting over-staying tenants can be difficult. Zagreb’s courts (e.g.) are much clogged, and cases take time. Informal methods of using ‘agencies,’ i.e., thugs, are common and tend to be recommended by realtors.

Legislation

Law on Apartment Rental
Law on Sale of Apartments with Tenancy Rights

    





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