Buying property in Croatia? Think of currency exchange!

Buying property in Croatia? Think of currency exchange!

One of questions we often face when selling a property in Croatia to an overseas buyer is the currency exchange issue. Even though the property prices are stated in euro (even in the sale-purchase contracts), please be aware that Croatian Kuna, as the national currency, is the official mean of payment for any property-related transactions.

As the value in Croatian Kuna is contracted to the day when the payment is executed (unknown rate in foreseeable future), buyers often face currency exchange loss due to time gap between the day when the money is sent from their account, until the day when it arrives to the seller's account.

Moreover, if the buyers are sending foreign currency from abroad, is automatically conveted into Kuna upon receipt by the local bank. As the local bank uses selling (lower) rate, it leaves the seller with less money, causing the buyer to compensate the difference.

At Right Property Croatia as always try to assist our clients in getting the best available exchange rate there is. In reality, this means that the buyers open non-residential euro account in Croatia (in Privredna Banka Zagreb), after which we try to negotiate the rate and minimize the loss.

However, if the buyer prefers not to deal with high street banks and their rates, we would recommend a third-party service specialized in currency conversions. For this reason we teamed up with Foremost Currency Group, primarily for UK property buyers in Croatia. At Foremost Property Group you will get the following benefits:

  • Access to commercial rates of exchange better than the banks
  • Access to commercial rates of exchange better than the banks
  • Free account facility with no obligation to trade
  • No fees or commission payable
  • 24/7 trading online