CROATIA Law and Practice Contributed by: Marko Paulinović and Dino Vukoša, Buterin & Partneri
2.7 Soil Pollution or Environmental Contamination
For the purpose of obtaining official information on the intended land use and the planning conditions appli - cable to a particular development project, a buyer may request a location information certificate ( lokacijska informacija ), which is an official document summaris - ing the applicable spatial planning documents. To facilitate and accelerate the implementation of a project, an investor may also enter into arrange - ments with the local authorities whereby the investor undertakes to construct municipal infrastructure and subsequently transfer it to the relevant local self-gov - ernment unit. 2.9 Condemnation, Expropriation or Compulsory Purchase Expropriation is possible in Croatia. It is a procedure through which ownership of real estate may be taken or restricted in the public interest, for example by establishing a lease or easement, subject to the pay - ment of fair compensation to the owner. Public interest may exist, for example, for the purpose of carrying out works in the interest of the Republic of Croatia for construction of transport, energy, munici - pal or other infrastructure, etc. The procedure for expropriation is governed by the Expropriation Act. Before initiating the expropriation procedure, the existence of public interest must be established by a specific act (a decision of the gov - ernment of the Republic of Croatia). Subsequently, expropriation proceedings are conducted before the competent administrative authority, which issues the decision on expropriation. Compensation for expro - priation is determined at market value of the property. If the issue of compensation is not resolved by agree - ment between the parties, the amount of compensa - tion is determined within the expropriation proceed - ings. 2.10 Taxes Applicable to a Transaction The sale of real estate is subject either to real estate transfer tax or to VAT (see 8.1 VAT and Sales Tax ). In an asset deal, the principal tax applicable to the pur - chase of real estate is real estate transfer tax, which, pursuant to the Real Estate Transfer Tax Act, amounts
Pursuant to the Environmental Protection Act, the person responsible for environmental pollution is required to bear the costs arising from such pollution. These costs include the costs of assessing the envi - ronmental damage, determining the necessary cor - rective measures and implementing the remediation of environmental damage. In addition, the polluter is responsible not only for the damage caused but also for monitoring, prevention and other financial obliga - tions associated with environmental protection. However, exceptions may arise. For example, where the perpetrator of illegally disposed waste cannot be identified, the owner of the real estate may become responsible for the removal of such waste. For this reason, careful due diligence should be conducted prior to acquisition, and the sale and purchase agree - ment should contain contractual representations and warranties whereby the seller guarantees that the land is not contaminated and undertakes to indemnify the buyer should contamination subsequently be discov - ered. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law A buyer can ascertain the permitted uses and the manner of use of a parcel of real estate by review - ing the spatial planning documentation of the relevant local self-government unit (cities, municipalities). Spa - tial plans regulate the planned use of land, prescribe protection measures and set out the conditions for the issuance of administrative acts required for their implementation. There are several levels of spatial plans, depending on the territory covered and the level of detail; these plans are publicly accessible. In the adoption of spatial planning instruments, the princi - ple of vertical integration applies. Under this principle, the Republic of Croatia, as well as local and regional self-government units and other public law bodies, are required to co-operate and take into account the objectives and interests expressed in spatial planning documents adopted at a higher hierarchical level or covering a broader territorial scope, and to participate in the procedures for the preparation and adoption of spatial plans.
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