Original scientific paper
RIGHT OF OWNERSHIP AND RIGHT TO BUILD OF FOREIGN CITIZENS ON REAL ESTATE IN THE REPUBLIC OF CROATIA
Petar Simonetti
Abstract
Foreign citizens that had acquired on different bases or had the right of ownership on constructions on building soil in social ownership (1945- 1991), acquired on October 8th, 1991 by the force of law the right of ownership on the soil pertaining to the construction. Under the present law foreign citizens can acquire the right of ownership on real estate subject to reciprocity condition, and, in case of acquisition on the basis of legal transaction, there are further conditions, one of which being consent of the competent minister. The same rules apply to acquisition of the right to build on built or non-built building soil since this right, according to explicit provision of the law, is considered to be real estate in legal sense, while any construction on it is considered to be its pertinence as if the right were soil. Foreign citizens cannot have nor acquire the right of ownership on certain real estates (agricultural soil, forests and forestry soils, areas of protected nature, and on territories that are excluded for reasons of protection of interests and safety of the Republic of Croatia). It is presumed that in accordance with provisions of the Stabilization and Accession Agreement most of this limitations will be eliminated in relation to physical and legal persons of the EU Member States. This liberalization will be extended to persons-nationals of states with whom the Republic of Croatia concluded treaty with clauses on the most privileged nation. However, there are no obstacles for the state to introduce by a legislative act a general prohibition of sale of soil in state ownership (such a prohibition already exists in relation to forest and forestry soil), and also for soil in ownership of units of local and regional self-government. Such a measure would not discriminate against foreign citizens, nor would it place limitations on the freedom of movement of capital, since there are legal institutes that are in principle equally accessible for both domestic and foreign persons, and that enable capital investments in agricultural and building soil as well as commercial use of soil, and acquisition of right of ownership on buildings and other constructions without establishing the right of ownership on soil itself.
Keywords
foreign citizen; real estate; right of ownership; right to build; reciprocity; limitations, consent
Hrčak ID:
8201
URI
Publication date:
27.3.2006.
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