Three year extension of ban on sale of farm land in Croatia to foreigners approved

Illustration) The European Commission has adopted a decision to extend the transition period in which the citizens of EU could not purchase farm land in Croatia.

– The EC decision secures another three years which can be used to fully utilize the agricultural potential by putting the farm land back into production process, Croatian Ministry of Agriculture pointed out, tportal website reports.

The announcement reminds that as part of Croatia’s Treaty of Accession, the EU had granted a seven-year transition period in which farmlands on the Croatian territory couldn't have been purchased by citizens from other member states.

The transition period, which expires by the end of June, has been imposed in order to prevent a possible sharp rise in the price of farm land due to the higher purchasing power of citizens from other EU member states.

That would make it harder for Croatian farmers to purchase arable land and would slow down much-needed restructuring of the agriculture sector, the relevant ministry explained.

Croatia's accession treaty with the EU contains the option of extending the ban by three years in case the country proves that after the first seven years of membership its arable land market is not yet stable enough and there is a risk of a significant rise in prices if it opens to foreign buyers, the ministry noted.

Ministry of Agriculture of Croatia

European Commission

farm land

foreign owners of farm land