Croatia open for business

A new property law in Croatia could be good news for overseas investors...

The Croatian parliament on Friday amended the country's property law so as to make it easier for foreigners to buy houses there, national television reported.

The move had been demanded by the European Union, which the Balkan state is seeking to join. From now on foreign nationals who want to buy property in Croatia have only to seek the approval of the justice ministry. Before, they also needed a green light from the foreign ministry.

But foreigners can only buy property in Croatia if their home country offers the same rights to Croatians.

The opposition condemned the vote, saying that by introducing the new law the ruling conservatives were paving the way for the "sale of Croatia's most valuable resource", meaning its Adriatic Coast.

EU criticism

In April, the European Union criticised Croatia's property laws, saying Zagreb was going back on the conditions to which it had agreed for joining the 25-nation bloc.

The EU warning followed complaints from the Italian government that Italians were being discriminated against in the Croatian housing market.

Over the past five years there have been 7,300 foreign requests to buy property in Croatia -- mainly on its Adriatic Coast --, of which just 2,700 have been approved, according to official figures from the foreign ministry.

However the true number of purchases is believed to be much higher. The press and estate agents estimate there could be as many as 45,000, because buyers are finding loopholes in the lengthy, complex procedure.

Croatia began membership talks with the EU in October 2005 and hopes to join by the end of the decade.

Source: http://www.eubusiness.com