Frequently Asked Questions
Villa in Croatia
Villa in Croatia: Candy Brick prepared a large list of frequently asked questions about your luscious investment property.
– You get a €30,000 rental income guaranteed by contract removing any uncertainties about your income.
– Return of investment of 8.33%, that is 53% higher than the Croatian average.**
– Stress free income, with management of the villa our responsibility.
– Zero electricity bills! The villas are autonomous and self sufficient. Three systems make this possible; photovoltaics placed on the roof generate enough energy, and an air-pump and solar water heater provide heating and cooling for the villa.
– There is no VAT to be added! It is reimbursed by the government within 30 days. We can even give you an interest free loan for that period!*
– Low tax expense. After deducting costs, it is around 2% of your rental income (€720).*
– Sea view.
Price, Rental Income and Guarantees
Through the Rental Guarantee, we rent your villa, and then sub-rent it to tourists. This means that we pay you the rent, and you don’t need to worry about anything else. Sub-renting, finding clients, and managing them, it is all on us.
Rental Guarantee, you can choose between:
– Summer Rental Guarantee (from June to September) → €25,000.
– Annual Rental Guarantee → €30,000.
– Marketing & rental;
– Check-in & welcoming;
– Management service (cleaning, gardening, pool management, etc.);
This will cost you €5,000 for Summer Rental, or €6,000 for Annual Rental.
– Annual Guarantee (after management and maintenance costs): €24,000.
– Low tax expense, that after deducting costs should be about 2% of your rental income (€720).* **
– Net income: €23,280 approx.
Additional benefit: 2 free weeks to enjoy your villa (for full year rentals, approx value €2,500).
After taxes and costs, ROI is 6.47%. Again higher than the average of 4%.
Stress free and guaranteed.
– Significant income agreement;
– You save time and don’t need to worry about anything;
– Risk minimization, zero stress.
Without a Rental Guarantee, you would need to work and dedicate a lot of time to manage your Candy Brick villa in Croatia, among uncertainties and probably a lower than expected result.
We look after the cleaning, laundry, gardening, swimming pool, check-in, emergency situations.
This service means that you can save time, and relax while enjoying your investment.
That is also financially convenient: having more villas under management, we are able to offer you a competitive price.
Acting individually, your marketing and managements costs would be significantly higher (almost double).
House prices are also increasing at an average 11% y/y, as well as rental prices. Within Istria, the region of Marcana has the highest growth rate of tourists and overnight stays. Furthermore, Istria guarantees:
– Gradual and sustainable growth in the real estate field;
– Huge structural investments since entering the EU (over 6 billions committed between 2014 and 2020), which means high long-term growth prospects;
– Political stability;
– Safe, very low crime rate, and zero illegal immigration;
– Splendid nature, sea, and villages;
– Cultural and gastronomic attractions.
All this is ideal and necessary to maximize your long term investment.
– Reinforced concrete foundations
– Thermal insulation (10-15cm)
– Room height of 2.70m
– Total floor area of 170-190 sq.m
– Triple glazed windows
– Italian tiling
– Modern furnishing
– 8x4m swimming pool made of reinforced concrete
– Glass railings on balconies and terraces
– Reinforced concrete stairs
– Rainwater collector
– Well lit interior thanks to large windows
– Underfloor heating
– Solar water heating
– Automatic check-in
– Heated swimming pool
– Bluetooth speakers in the bathrooms
– Photovoltaic panels
To increase your protection, in the contract between you and Candy Brick there is a penalty of 2x the value of the deposit, to be paid by Candy Brick in case the project is not successfully completed according to the project timeline and specification.
– Preliminary contract with 10% down payment.
– d.o.o creation (optional) with full support provided by Candy Brick.
– Payment of balance and villa delivery when it is successfully completed.
Before the preliminary contract, you can ask us for any documentation and we can discuss your needs to maximise the legal and financial protection of investment.
It also means you can benefit from the 12% corporate tax regime in Croatia, that after deducting costs** should be about 2% of your rental income.
Furthermore, there is no VAT to add. VAT is reimbursed in around 30 days. We can even give you an interest free loan!*
Opening a d.o.o company costs €1,000 and the annual management cost is approximately €1,000 (Candy Brick can support you through the process).
Getting a mortgage for your villa in Croatia is also possible from a Croatian bank, again to be discussed depending on your specific situation.
*If you incorporate a Croatian company. The cost is only €1,000 and we will assist you through the process.
**This is calculated after deducting 5% (€17,500) depreciation charge from the company income statement, http://taxsummaries.pwc.com/ID/Croatia-Corporate-Deductions
***(5,43%, Business Insider, http://www.businessinsider.com/best-countries-to-buy-rental-property-earn-passive-income-2018-5#23-portugal-3, Global Property Guide, https://www.globalpropertyguide.com/Europe/rent-yields)