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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.
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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 |
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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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