Legalization loans

Every day more and more citizens are realizing that the number of arguments for the legalization of illegally constructed structures is growing rapidly, and they want to address the concerns about legalization once and for all.

Given that it is certain that after the deadline set by June 2013 the cost of legalization will be higher, many have already started the process.

The legalization of real estate


It is already well known today that the legalization of real estate is very directly linked to the tax benefits on the same within the new tax model, so the decision to legalize it became unquestionable for our fellow citizens. Likewise, legalization rates, which often reach over ten thousand euros, have become a very big item in planning each family’s home budget. Due to the fact that most average citizens are not able to raise that much in cash or reach for savings, citizens are left to rely on their own credit.

Legalization loans are intended to pay the obligations associated with the legalization process relating to the preparation of a geodetic survey, the payment of utility and water contributions, the making of architectural photographs and the payment of the retention fee for illegally constructed buildings.

Legalization loans can be raised in kuna, euro and dollar


Most banks range from HRK 15,000 to HRK 200,000 for 10, 15 or 20 years. However, a legalization loan can also be found on the market for an amount equal to the estimated value of the property with a repayment period of up to 30 years.

As with other types of loans, banks offer various models of loans for legalization. Of the insurance instruments, a promissory note and a statement of forfeiture are generally required, and depending on the model of the loan at an individual bank, a life or risk insurance policy, a deposit, a lien, a guarantor or a co-debtor are also required.

Most banks offered interest rates on these loans as they did on home loans, but they also depend on the loan model. Interest on loans for legalization ranges from 4.49% in the case of loans for young people to 6.45% for loans in euros, while for kuna loans that citizens have recently preferred to be taught by the experience of escalating the Swiss franc, interest rates rates go up to 7.99%.

It is important to mention that for these loans

It is important to mention that for these loans

It is necessary to enclose the pro forma invoices and the solution according to which, after approval, the payment of the loan is made, and relates to:

  • Pro-forma invoice or bill for settlement of utility and water contributions
  • Decision on compensation for the detention of an illegally constructed building
  • Pro forma invoice or invoice for costs related to the request for issuance of the Statement of Execution:

– Architectural snapshot of the completed state

– Proof of fulfillment of the mechanical stability and resistance requirements of the building

– Geodetic survey for recording building data

As each client has a specific credit history, different creditworthiness and very individual financing needs, we suggest that, just like the legalization process itself, you should leave the search for a loan tailored to your legalization process to professionals, who are looking for banks’ credit lines on a daily basis.