Inheritance and probate in Croatia: what happens to a foreign owner's home.

Which country's law decides who inherits Croatian property?

The EU Succession Regulation: by default the law of the country where the owner lived at death, unless the will chooses the law of their nationality. Croatia also applies the 1961 Hague Convention, so a will valid in form where it was made is valid in form in Croatia.

So a British owner living in the UK can keep the Croatian home under the law of one British legal system, such as England and Wales, by choosing it in the will. Without that choice, the UK's own rules can send the Croatian property back to Croatian law and its forced shares (article 34).

Who must inherit under Croatian law?

When Croatian law applies, children (including adopted children and their descendants) and the spouse are reserved half of what they would receive without a will. Parents, adoptive parents and other ancestors are reserved a third, but only if they are permanently unable to work and without means.

A will that cuts into a forced share is not void: the forced heir has to claim the share. The rest can be left freely.

Is there inheritance tax on property in Croatia?

Not as such. Inherited property pays the 3% real estate transfer tax on its market value when the inheritance decision becomes final, due 15 days after the assessment, which arrives without being asked for. A spouse, all descendants and ascendants, and adoptees and adopters are exempt and receive no assessment; siblings and partners pay.

The separate 4% inheritance and gift tax covers cash, receivables and securities from the first euro, and other movables worth over EUR 6,700 each, with the same family exemption. Yearly taxes while you hold the property: Croatia property tax for foreigners.

How does a Croatian inheritance work, and can a foreigner inherit?

The municipal court opens the probate proceedings and hands them to a notary acting for the court. If the deceased did not live in Croatia, the court of their temporary residence in Croatia is responsible, and failing that, the court where most of the Croatian estate lies. The court sends the final decision to the tax office and the land registry within 15 days after the end of the month in which it became final.

A non-EU foreigner can inherit Croatian property subject to reciprocity with their country; without reciprocity, the heir is compensated instead of receiving the property. The Justice Minister's consent is needed only for other ways of acquiring, such as buying. EU nationals are treated like Croatians, except for agricultural land and protected nature areas. No official source gives a typical length. The register entry: the Croatian land registry extract explained.

Header photo: Vojtěch Dočkal, CC BY-SA 4.0, via Wikimedia Commons. All credits: image credits.