Purchase of agricultural land owned by the Republic of Croatia

17.12.2021.

There are approximately 3.200.000 hectares of agricultural land in Croatia, out of which 65% is privately owned and 35% is state-owned. However, only 1.200.000 hectares (approximately 1/3 of the total agricultural land in Croatia) has been cultivated (with 1.000.000 hectares in continental Croatia and 200.000 hectares in the coastal regions). The term agricultural land means agricultural land that is described in the real estate cadastre as: arable land, gardens, meadows, pastures, orchards, olive groves, vineyards, ponds, reeds and swamps, as well as other land that can be used for agricultural production.

 

Agricultural land owned by the State is disposed of on the basis of the Program for the Disposal of State-Owned Agricultural Land. State-owned agricultural land can be sold through a public tender. One buyer can buy state-owned agricultural land in Croatia up to a maximum area of ​​50 hectares in the continental area and up to 5 hectares in the coastal area.

 

Third-country nationals cannot acquire agricultural and forest land in Croatia, while a seven-year moratorium, i.e. a ban on the sale of agricultural land, applies to citizens of the European Union. Although the moratorium expired in July 2020, this deadline has been extended for another three years so that EU citizens will only be able to buy agricultural land in Croatia after June 30, 2023. It is important to emphasize that no restrictions apply for Croatian companies controlled by foreign persons for the acquisition of real estate.

 

It is also important to note that agricultural land purchased from the State cannot be sold within ten years from the date of concluding sale and purchase agreement. After the expiration of this period, the State has the preemtion right to buy the agricultural land at the market price. If the Ministry of Agriculture does not accept the offer and does not use the right of first refusal, the owner cannot sell the land in question at a price lower than the one offered to the Ministry. The said prohibition of sale and the right of first refusal shall be entered in the land register at the same time as the registration of the buyer's right of ownership.