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Croatia
The first is by investing in real estate in one picturesque city on the island of Brac: Milna. This, as well as some other old Dalmatian island's cities, offer the most extreme proof of that real estate truism of increasing value: They're not making any more of them. These historic properties fall squarely into a category of international real estate that is truly special.
EXCHANGE RATE UNEMPLOYMENT RATE
U.S.$1 = 8.10 Croatian Kuna
(Sep. 14/2001)
20.1%
INFLATION RATE PER CAPITA INCOME (U.S. $)
4.2% $4,376
POPULATION GDP (U.S.$)
4,784,000 $20.1 billion
Historic Milna for less than $45,000

Milna lies in a valley protected from the winds but exposed to the sun. It is a fishers' and sails men's resort. The patron of Milna is St Nicholas the Traveler who used to walk sailors and captains to the open sea. It is a
small town with houses that range in rows. You can see lot of imagination in architecture exposed in the way of building: houses, windows, balconies, roofs and chimneys are most interesting. The bay is ideal for sport fishing. The climate is mild and adequate for
the development of winter tourism.
ACY marina is available for numerous ships and yachts.

Here's a example of the sort of property available in the city: Location: Milna Type: Apartment Size:40m2 + 45m2 basement Price: $42 000 USDIt is located by the sea, in the center of the village and the port of Milna. This location of this apartment makes a great location for business.

Piece of land, 50,000 m2, "Maslinova" port. This is a favorite Croatian port for yachting including Benetton's located on the south side of the island Brac 200m from the sea. There are roads, electricity, and phone connections. Water connection will be available soon. Price: 30 DEM per m2.We are interested in partnership  with 2 or 3 shares.

Don't be surprised when you don't see "for sale" signs

Croatians cautiously guard their privacy, so don't be surprised when you don't see a "for sale" sign anywhere in the entire city. Listings are made confidentially. So whom you know is important. 

 
The Adriatic at your doorstep

We believe that island properties are the first interesting investment opportunity in Croatia. Split is the second-largest city in the country, with a population of 350,000. A central hub for ferry traffic to and from neighboring islands, it has some of Croatia's most expensive oceanfront properties. It is not uncommon to find $1million homes along the waterfront in its more affluent suburbs. Off the coast, however, on such island as Brac, it's another story: You can find properties here for sale for as low as $15 per square meter.

Act now, before the tourists return

Still, good deals do not last forever. As Croatia continues to enjoy the postwar resurgence of its tourist trade, the economic changes in the country offer opportunities to foreign buyers interested in owning real estate in Europe. You see, the troubles that halved tourism receipts here in recent years are certain to prove but a short-term blip.

We predict that within three years, the villages along the 1,000-km Dalmatian coast with its 1,200 islands will enjoy the level of tourism they boasted before 1990. An opportunity now exists. But once this destination is rediscovered by the 500,000 German, Austrian, and Italian visitors who vacation in Dalmatia each year, the best investments will be gone.

It's relatively easy to take up residence in Croatia. Travelers from most countries can stay in Croatia for three months without a visa. After three months, you must either exit and re-enter the country, or apply for an extension of your visa at the police station.

Own island property for as little as $15 per square meter

We predict a complete recovery within the next few years, which bodes well for future development. When Croatia was part of Yugoslavia, it benefited from an economic stability that it does not have today. As a result, there were stable salaries and employment. In those days, real estate was not regularly sold.

The acquisition of a residence was most often a once-in-a-lifetime event. Homes were passed along from one generation to the next. The war, subsequent independence, and a newly embraced entrepreneurial system helped to change Croatian attitudes toward property ownership. For the first time, homes are being thought of as valuable assets. This change in attitude is presenting a new opportunity to foreign investors.

 

Become a Croatian land speculator

Avoid the $1 million properties and consider, rather, becoming a Croatian land speculator on one of these islands. The local governments in Croatia keep good track of planned infrastructure improvements through what is the Croatian equivalent of a master-planning process.

If you were to review the government's plans carefully and buy island property beside or within the path of infrastructure development, you could enjoy substantial benefits when the extension eventually occurs.

Most likely, the government's improvements will occur depending on the amount of tourist traffic and development demand in a given region.

We have properties starting at $15 per square meter and ranging from 10 acres to 300 acres available in the islands. Comparable properties traded for more than double price per meter prior to the 1990s troubles, and it makes sense that with the continued return of tourism these higher prices should ultimately return as well. Croatia has already recovered 50% of its tourism businesses-which, in turn, has already increased real-estate demand.

Travelers can stay for three months without a visa

If you'd like to stay indefinitely, apply for a residency permit at the local police station. You'll need your passport, birth certificate, or identification card-and a good reason to live in Croatia. (which can be related to an investment, a business, family, work, study or a real-estate purchase.) You must also show proof of income.

Croatia offers potential investors an educated labor pool, where the average monthly salaries range after taxes form $200 to $1600 for a top executive. With regular flights from Europe and the US to the capital, Zagreb, access by European bus and train services, and ferry service from Italy, getting to Croatia is not a problem. The country is focused on it entrance into the European union and all indications point to prosperity.

The government is aggressively encouraging investment in the country. As a foreign investor in Croatian you are guaranteed the same rights as domestic investors. In addition, you are guaranteed free transfer of profits and repatriation of investment capital. Foreign investors in Croatia may also own property in Croatia, without government approval, provided the condition of reciprocity is met.

You need a local partner!

The requirement of "reciprocity" means that Croatian citizens may under the same conditions own real estate in the country of the applicant-foreign citizen. This requirement is presumed until proven otherwise. Beside "reciprocity", foreign physical persons for acquiring ownership rights over a real estate in Croatia need a consent of the Ministry of Justice and of the Ministry of Foreign Affaires. However, domestic enterprises, even if they are one hundred percent in foreign ownership, may acquire real estate without any requirements and/or consents.

Setting up a foreign partnership gives you easy access market knowledge, as well as the necessary buildings, warehouses, office space, and personnel. If your investment is 20% or more of the total investment, then equipment imported for the business can be brought in duty free (provided the duration of the investment is at least five years).

 

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Last modified: October 03, 2001
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