The 2022 WOLEP State of Real Estate Report

The real estate industry is constantly evolving, and understanding the trends and challenges in different markets is crucial for anyone looking to invest or make informed decisions about their property. This report aims to provide a comprehensive overview of the real estate landscape in Europe in 2022, and we hope it will be a valuable resource for anyone interested in the subject, and that you find this report informative and useful. Thank you for reading!

Mr. Luka Kokić (WOLEP member, Serbia)

Luka Kokić (Serbia): The buyer purchases real estate in the following manner: The first step is to go to a lawyer to draw up a sales contract. Then, the lawyer sends the sales contract to the competent public notary (according to the location of the real estate) for certification of the sales contract. After that, the buyer and the seller approach the competent public notary, who reads the sales contract in their presence and teaches them about the legal norms related to sales. Then, the buyer and seller sign the contract in a minimum of 3 original copies, 1 for each contracting party, while the third is kept by the public notary. The notary then, within 24 hours, sends the sales contract to the Republic Geodetic Institute - Real Estate Cadastre Service, in order to register the buyer’s property rights in the public real estate register.

Silvio de Candia (Spain): Usually when anyone interested in buying a property to live or invest must sign a deposit contract, which is a private contract, that is, prepared and signed by the interested parties, and pay an amount that is usually 10/15% of the total price of sale. When this contract is signed, a period between 2 and 4 months is established for the signing of the deed of purchase with the notary and then the new owner must register their ownership in the Property Registry.

Kamil Bechta (Poland): The answer to this question depends on whether a client is a Pole or a foreigner. Additionally, it depends on whether we buy property in the primary market or after-market. If the first scenario (Aftermarket and the client is Pole) takes place the whole process seems to be less complicated. A client starts by monitoring the market of real estate to find the best offer for him. The type of real estate, its availability on the market, and of course price – these are all factors that are taken into consideration when one searches for his estate. Many times these initial steps are done with the real estate agent who has better access to the market – has to know more offers that are potentially interesting to the client.

When the client finds a property that seems to be attractive according to his requirements – the process of verification could start. The real estate is verified on the ground of legal and factual risks – much information can be obtained from the perpetual book. Perpetual Book is the mandatory document related to each real estate which contains the most important data about the property. The register of the perpetual book is maintained by the Regional court for the district where the property is placed. You will find there who is the owner of the real estate, whether the property is weighted by any right of the third person like a bank. Checking this information is very crucial in the process of buying property. It is important to point out that not every property needs to have a land register. In this case, it is advisable to obtain other documents related to the property: proof of acquisition, administrative decisions, court rulings, and land title deeds.

When a client finds an estate that meets his conditions and acts of verifying particular estate gives positive answers – the formal process could start. The first step is to conclude the preliminary contract which stipulates the most important terms of the future contract including the final price for the real estate and the date until the final contract must be concluded. In such a preliminary contract, there is also a clause regarding a down payment – part of the price is paid with signing the preliminary contract. In a case where the final agreement will not materialize the down payment is either returned to the buyer once or in double. This depends on a specific legal provision in each contract. Then, the parties can move on to the final contract for the sale of real estate. What is very vital such a contract in Poland has to be made in a specific form – the notarial deed. If the above mentioned form will not be kept – the whole contract is null and void and therefore there cannot be a successful transfer of the ownership of particular property. In the notarial deed, there must be many specific elements required by the law. Here is the list: the date of the deed (day, month, year, sometimes also the hour and minute when the document was commenced and signed); a place where the deed is drawn up; details of the notary and location of the notary’s office; names, surnames, parents’ names and place of residence of the natural persons involved in the legal action; statements of the parties (referring to the documents submitted with the deed); at the request of the parties, a statement of the facts and relevant circumstances which occurred during the drafting of the deed; a statement of the reading, acceptance, and signature of the document; signatures of the persons involved in the notarial deed; signature of the notary. Furthermore, the contract must stipulate the parties, individualized subject of the agreement (by referring to the number of the property from Perpetual Book), price, method of payment, and the term of delivery of such property to the buyer.

We cannot forget about the statements of the seller. He stipulates that he has the rights to such property, and this property has (or does not) any legal burdens (like the rights of the third person). The seller also confirms that there are no legal or factual obstacles to selling such property. Such confirmations matter – if they are not true this could bring the liability of the seller to the table.

Furthermore, the seller encloses the contracts and some documents. He has to show a copy of the document which proves that he acquired particular property (not necessary contract – It could be the sentence of the court that the seller became an heir and acquired property in this way). Moreover – he gives the certificates necessary for the notary to establish that the property is free from legal defects and encumbrances, or specifying how and under what conditions they are encumbered; a copy of the perpetual book, and sometimes a certificate stating whether the property is located in a revitalization area. It is vital to remember that signing the contract of purchasing real estate is subject to the payment fee charged by the notary. The amount of this fee depends on the value of the property in question.

After buying the real estate some further acts have to be made. The new owner has to be registered in the perpetual book. The parties draw the protocol which certifies the factual state of the property on the date of delivery to the buyer. The seller has to transfer to the buyer his rights regarding contracts for media in the property (like internet, TV, etc). If there is a housing association (pol: wpsolnota mieszkaniowa) – this body must be informed about the transfer of property. Moreover, it can turn out that the buyer must be paid Tax on civil law transactions and VAT on the acquisition of immovable property. Tax on civil law on the purchase of the property is 2% of the market value of the property. In a case where the property is bought by an entrepreneur instead of a tax on civil law, it could be possible to pay VAT – at the rate of 23%. Also we have to remember to inform about the acquisition of the property the local municipality. Such estate is subject to tax on immovable property and therefore must be reported.

When it comes to buying property by foreigners, there are some additional regulations. According to a general rule, the acquisition of real estate in Poland by a foreigner requires a permit from the minister responsible for internal affairs. The permit shall be issued by an administrative decision by the Minister if no objection is raised by the Minister of Defence and, in the case of agricultural property, also by the Minister responsible for rural development. But there are many exceptions to the abovementioned rule. For example, the permit is not required in the case of:

- acquisition of an independent residential unit within the meaning of the Act of 24 June 1994 on Ownership of Premises, located in a building,

- the acquisition of self-contained commercial premises with a garage use or an interest in such premises, if this is linked to meeting the residential needs of the purchaser, the owner of the property, or the self-contained residential premises;

- the acquisition of real estate (other than residential or commercial premises) by a foreigner residing in the Republic of Poland for at least 5 years after having been granted a permanent residence permit or a long-term resident’s residence permit of the European Union;

- the acquisition by a foreigner who is the spouse of a Polish citizen and who has resided in the Republic of Poland for at least 2 years after the granting of a permanent residence permit or a long-term resident’s residence permit of the European Union of real estate which as a result of the acquisition will constitute the spouses’ statutory joint property;

- acquisition of a real estate by a foreigner if, on the date of acquisition, he is entitled to statutory succession under Polish law from the transferor of the real estate and the transferor has been the owner or perpetual usufructuary of the real estate for at least 5 years.

If the real estate is close to the border (borderland) you cannot use these exceptions. If the buyer–foreigner acquires ownership of the real estate contrary to the aforementioned provisions the act is null and void.

In the process of buying the property people very often search for mortgage credit – they cannot afford to buy such property on their own. The terms and conditions of such mortgages are also very important.

When we are buying the property on the primary market (when the real estate is constructed for us, or property already exists, but we are the first owner) we will be the first to cover steps to find the proper real estate and developer. But before the process of building the property is completed and we are able to acquire the property, we have to sign a “development agreement”. This contract covers the rights and obligations of both parties during the process of construction of the building, and the terms on which ownership can be transferred to us.

Ivan Močić (Croatia): The answer to this question depends on  whether a client is a Croatian citizen or a foreigner. If the Client is Croatian, the procedure is much simpler.

In general, after doing „the groundcheck“, the procedure officially starts by drawing up a sales and purchase contract. In Croatia, that is a task mostly done by the lawyer. The lawyer also explains the Client the content of the contract and  accustoms him to the conditions of the sale/purchase.

However, the Client has to sign the contract in front of the public notary (according to the location of the real estate) for the purpose of certification of the sales and purchase contract. The notary also has to notify the tax office about the conclusion of the contract. In most cases, in Croatia, the buyer has to pay the 3% real estate transfer tax (there are some exceptions of tax exemption).

The lawyer or the notary, it depends only on the Client’s choice, afterwards sends the contract and eventual other documents (for example title transfer statement etc.) to the land registry for the registration of the ownership rights.

In case the Client is foreign, there are specifics he should be aware of:

First of all, one can buy a real estate in Croatia only if his national country has a reciprocity agreement with Croatia. Most of countries do, but nevertheless, it is worth saying.

Also, the seek of consent from the Ministry of Foreign Affairs before the sale is mandatory if the client is not from the European Union or EEA (European Economic Area -  Iceland, Liechtenstein and Norway) or Swiss national. Since 2009, the citizens of all EU/EEA Member States are eligible to buy a property in Croatia under the same conditions as Croatian citizens. Without this consent, the foreign owners cannot register their purchased property.

At the moment, such Clients can’t buy any agricultural lands, protected properties, cultural monuments, and forests. Amendments of the law regarding this subject, however, are already announced although they have been postponed several times.

During the verification of the  land registry/cadastre  status of the real estate, it is very important to check the status of the  real estate in terms of checking the town planning zone and in case the client buys a property in order to build, he should be aware of the construction conditions before the conclusion of the contract.

It is also of importance to point out that some of the foreign Clients decide to open a limited liability company in Croatia, to avoid the upper procedure.

Mr. Vincenzo di Lorenzo Sarappa (WOLEP member, Italy)

Vincenzo di Lorenzo Sarappa (Italy): The most common way to acquire real estate in Italy is through a professional intermediary, which can be represented by a real estate agency, a lawyer, or a mediator. In more specific terms, it depends on the kind of client aiming at buying it and what type of real estate is at stake.

For example, a common person whose target is to buy an apartment for residential purposes usually will go through a real estate agent, who will walk him through the entire process, from the preliminary negotiations to the final public deed.

On the other hand, the acquisition of real estate for investment purposes usually occurs through a mediator or a lawyer (or even both of them), who acts on behalf of the client during the negotiations and sometimes legally represents him/her at the moment of the public deeds. In the sector of investments, an important role is played by the bankruptcy procedure and restructuring/insolvency process: in this case, the support of a lawyer is essential.

As to the kind of property, it is common that the procedure to buy luxury real estate is entrusted to a professional mediator, lawyer or specific real estate agency. Well, having said that, the common procedure to buy real estate in Italy (out of the case the acquisition occurs in the venue for bankruptcy and/or restructuring/insolvency procedure), is that the buyer and the seller enter into a preliminary agreement (in common language, cd. “compromesso", art. 1351 Civil Code), which is a private agreement setting forth the main conditions (but many times all of the conditions) of the future sale before the public notary. Let's say “future” because the right of ownership, which is an erga omnes right, will be conveyed from the seller to the buyer only at the moment of the public deed. The reasons that lie below the signing of the preliminary agreement are quite a number; for example, the buyer needs more time to finalise the mortgage process from the bank; the documents to be delivered to the notary are not ready yet; the buyer needs to postpone the acquisition of the property right for tax reasons, and so on.

The preliminary agreement, as we already said, is a private agreement that binds, on the one hand, the promisee buyer to acquire the real estate at stake and, on the other, the promisee seller to sell it. It also states the date of the public deeds before the public notary with binding effects.

It is also common that the preliminary agreement anticipate some of the effects of the final public deed: the buyer may pay a percentage of the price and the seller can give him the legal and/or material possession of the real estate, which is different from the right of ownership but it is also protected by specific rules of the Civil Code. In this case, we will have a preliminary agreement with anticipated effects.

It is important, mainly for the buyer, that, according to provisions 2645 bis and 2643 Civil Code that the preliminary agreement be transcripted in the land registry: in that way, the promisee buyer can prevail against the other having potentially bought the same real estate from the same promisee seller in later times than the transcription of his/her preliminary agreement. Besides, in case of breach of contract by the promisee seller, the credit rights owned by the promisee buyer have a lien by operation of law established by art. 2775 bis Civil Code on the real estate at stake.

However, after the signing of the preliminary agreement, on the agreed date the parties will go before the public notary to finalise the conveyance of the right of ownership from the seller to the buyer under the conditions already stated in the preliminary agreement.

Domagoj Olujić (Croatia): In order for a person or a legal entity to become a full fledged owner of a real estate in Croatia, it is necessary, besides fulfilling a number of legal requirements (depending on the home state of the buyer and other parameters), to have a signed and notarized sale and purchase agreement with the seller and to wait out the period, necessary for the submission of the proposal for registration of the ownership to the competent land registry department, to go through.

Luka Kokić (Serbia): The most important legal provisions that must be taken into account when buying real estate are the provisions of: the Law on Obligations, the Law on Public Notaries, the Law on Prevention of Money Laundering and Financing of Terrorism, as well as the Law on Property Taxes. The provisions of the first law in terms of sales, the provisions of the second law in terms of the rights and obligations of the public notary, the provisions of the third law in the financial sense - payment of the purchase price (since in the Republic of Serbia, all transactions over 10,000 euros must be made from the seller’s current account to the current customer’s account, not in cash), the provisions of the last law are significant in the tax-legal sense.

Mr. Silvio de Candia (WOLEP member, Spain)

Silvio de Candia (Spain): Before signing this contract, it is recommended that the buyer request a simple note of the property in which to see any charges such as a mortgage and/or any pending legal proceedings on the property. The buyer must also ask the seller for proof of payment up to date for the community (if it is a flat) and for the different local taxes.

If everything indicated is correct, within a period between 2 and 4 months the purchase contract can be signed at the notary in which it is important that all data and information are correct.

It is very important to request and examine the nota simple of the property in order to verify any charges on the property, such as a mortgage and also any legal proceedings.

Kamil Bechta (Poland): There are many such provisions. From the provision, I quote what I found the most important is the obligation to transfer the ownership under the notarial deed, the provisions regulating the content of the notarial deed, and provisions regarding buying the property by foreigners, and these which state exceptions for obtaining the consent from Minister by the foreigner. Here are some of the important legal bills when it comes to buying real property: the Polish Civil Code, the Text of the Building Act, The Real Estate Management Act, The Act on Exercising the Right to Compensation for Leaving Real Property Outside the Present Borders of the Republic of Poland, The Act on Transformation of the Right of Perpetual Use into the Right of Ownership of Real Property, The Act on the transformation of the right of perpetual usufruct of land developed for residential purposes into ownership of such land, The Act on Ownership of Premises.

Ivan Močić (Croatia): The most important legal provisions that one must take into account when buying a real estate in Croatia are: Property Act, Civil Obligations Act, Land Registry Act, and - in case of a foreign Client - also the Act on foreigners.

Moreover, in the context of payment of the purchase price, I would include the Prevention of Money Laundering and Financing of Terrorism Act.

Vincenzo di Lorenzo Sarappa (Italy): Well, there are several levels of law that a wise buyer must take into account. First of all, apart from the general rules governing the sale established by the Civil Code, the Civil Code provisions from 2643 to 2672 that govern the transcriptions/annotations regarding real estates on the Land Register. It is fundamental to verify if the real estate the buyer aspires to buy is subject to any lien, tax liability, legal proceeding, easement, life tenancy, mortgage as so on. Secondly, Law n. 47/1985 and d.P.R. 380/2001. Basically, according to those acts, public deeds having as object the sale of real estate are subject to the conformity clearance between the material current condition of the real estate, the building permission and the plans and layouts registered on the “Catasto” registry.

At the local level, it is always good advice that the buyer take into account the town-planning regulations enacted by the Town where the property is located, in particular if he/she is interested in making some renovation works or extending it. The buyer, if willing to extend the property will also consider the provisions established by the Civil Code (art. 873-907) and the Town-Planning regulations on distance between buildings.

At last, if the real estate is located inside a condominium, it is a good idea to check the Condo-rules.

Mr. Domagoj Olujić (WOLEP member, Croatia)

Domagoj Olujić (Croatia): There are many legal provisions in force in Croatia that one must take into account when buying a real estate and that is why one must have a legal expert to guide him/her through the procedure. The main legal provisions can be found in the Land Registry Act, Civil Obligations Act, as well as in the Act on foreigners.

Just to list a few of them, you may find interesting:

- Foreigners can buy property in Croatia, especially if they live inside of the EU/EEA. From 2009, the citizens of all EU/EEA Member States are eligible to buy a property in Croatia under the same conditions as Croatian citizens. However, there are quite a few restrictions for those living outside of the EU and British expats. However, you can still be eligible to buy a property in Croatia if your country has an agreement of reciprocity with Croatia. This means that if a Croatian Citizen has the right to buy a property in your home country then you have the right to buy a property in Croatia.

- Rules for buying property in Croatia as a non-EU/EEA national

1) Your country must have a reciprocity agreement with Croatia.

2) You should seek consent from the Ministry of Foreign Affairs before the sale is finalized (this takes two to six months). Without this consent, the foreign owners could not register their purchased property.

3) You can also purchase the property through the company route especially if you are planning to rent the property or further invest in your property. In this case, the owner of the property is the company, not the company owner himself.

4) You can’t buy any agricultural lands, protected properties, cultural monuments, and forests. You can only purchase agricultural land using a Croatian company, but that rule will be changed in the upcoming year.

- If you are a Swiss citizen, you must enclose proof of temporary stay together with the rest of the required documentation when applying for entry into the land registry.

- You can’t buy any protected properties, agricultural lands, cultural monuments, and forests. You may only purchase agricultural land using a Croatian company.

- You can only rent out through a company.

That is just to name a few rules in force in Croatia, regarding purchasing of real estate.

Luka Kokić (Serbia): A lawyer plays an important role in the acquisition of real estate in the Republic of Serbia, since the lawyer usually mediates between the seller (investor) and the buyer, first of all in terms of finding the real estate that the buyer wants to buy. Since lawyers represent investors in the construction of buildings, they know where the best prices are, in which locations, which investor is reliable, and which investor has the necessary documentation for building. After that, it is the lawyer who draws up the sales contract and sends it to the competent public notary for certification. The lawyer gives advice to the client in the tax-legal sense, as well as in terms of registering the client as a real estate owner in the real estate register.

Silvio de Candia (Spain): The main role of the lawyer in a purchase and sale process is to advise in accordance with the legislation of the Civil and Mercantile Code in force and to draw up the deposit and purchase contracts, so that everything is correct.

Mr. Kamil Bechta (WOLEP member, Poland)

Kamil Bechta (Poland): In general, the role of the one lawyer is mandatory – I mean the notary. This is the only person who can draw with a client the agreement in the form of a notarial deed. Also, notification of the fact of the transfer of ownership to the court is reviewed by the judge, to whether all formal requirements are met. But in the process of buying the property, the role of attorney also must be hightailed. Such a person can prepare the buyer the due-diligence report on a property which tells him whether there are legal or factual risks in buying such property. Such an attorney could also advise a client on the text of the preliminary contract or final contract for the sale of real estate. He could negotiate each of the provisions of such contracts and try to ensure that the client’s interest is safe when it comes to the method of payments, terms of the collection of the property, and many other factors in the Contract including statements by the seller that the property is free from any rights of third persons. The notary will inform the court about the conclusion of a contract. But your attorney can do other formalities like informing the municipality.

Ivan Močić (Croatia): In general, after the Client finds the real estate at his choice, he also chooses a lawyer to do all the background checking and draws up the contract of the sale and purchase for the desidered real estate.

The lawyer actually has a significant task to lead the Client throughout the whole process of the sale and purchase and the entire procedure is finished after the seller receives the purchase price and the owner receives the owner’s certificate on his own name. So, the lawyer also has a very important advisory role. Based on the experience, the Clients seek advices not just about the legal part of the sale and purchase, but also regarding such details about the opening of the bank accounts and the ways of paying the utilities etc.

Vincenzo di Lorenzo Sarappa (Italy): Well, in a matter that may have many potential “pitfalls”, both legal and material, the support of a lawyer is crucial. Indeed, the due diligence process performed by a lawyer is an essential step for the acquisition of real estate. Investigating whether or not the real estate at stake is subject to any lien, mortgage, tax liabilities, and so on is a decisive factor that can affect the buyer's interest to acquire the property, or at least can have an influence on the final price and conditions of the sale.

Depending on what is the purpose of the acquisition, and what kind of real estate the buyer is interested in, the lawyer can advise him/her on what type of right is convenient to acquire and consequently what kind of contract is favourable to him: Italian law, following the tradition of Common Law Countries, provides several kinds of contracts by virtue of which the right of ownership can be conveyed, with final or temporary effects, from the seller to the buyer.

Furthermore, a preliminary agreement drafted by a lawyer may impede, or at least reduce the risk that any issue arises between the buyer and seller. And at last, it is impossible to forget that lawyers are (or should be) good negotiators!

Domagoj Olujić (Croatia): The role of the Lawyer, during the procedure of acquiring real estate in Croatia, is, among others, to check the certificate of ownership, the competent land registry, to check the kadastre, make sure the buyer has all the requirements necessary for him to become an owner of real estate in Croatia, to check if the seller is suitable to sell the real estate in question, to draft the Sale and Purchase Agreement, to accompany the Parties during the notarization of the signature, to explain the procedure in the Notary's office and to submit the proposal for registration of the ownership to the competent land registry department, as well as to make sure everything goes smoothly and to potentially remove all legal obstacles one can stumble upon in the way.

Luka Kokić (Serbia): Regarding the risk that the client bears when investing in real estate in Serbia. First of all, I can say that those risks became minimal, from the moment when the public notary was given the legal authority to certify the purchase contract. Since the public notary is obliged to check whether the real estate in question has already been sold to another person (whether the purchase and sale has already taken place), before the notarization itself. The public notary will not perform the notarization of the contract if he finds any irregularities in this sense. In addition, in order for the contract to be certified by a public notary, the investor-seller must have a valid building permit and a certified application of works (two basic documents on the basis of which it can be concluded that the investor is building in accordance with the law). The buyer has a later risk only in terms of waiting for the issuance of a use permit for the subject real estate. This risk is related to the fact that until the issuance of the use permit for the real estate (the last legal document issued to the investor), the buyer cannot be registered as the owner of the real estate in question in the public real estate registry. Since the right of ownership of immovable property in Serbia is acquired only by registration in the public register of immovable property - Republic Geodetic Office - Service for Real Estate Cadastre. However, regardless of the above, the risk of investing in real estate in Serbia is minimal, since the price of real estate is constantly increasing. Which means that even when the client buys real estate, he can sell it in a few months, and at the same time make money from such trade.

Silvio de Candia (Spain): I think that in order to invest safely, the best and most reliable thing to do is to do a market study regarding the purchase price of the property and its possibilities of profitability. Study the profile of potential tenants of the property, be it an apartment or a shopping center.

Also know well all the expenses involved in a purchase and the reference legislation of the process. That is why I would say that it is essential to trust an expert professional in the field and with some practice.

Kamil Bechta (Poland): When you buy a property on the aftermarket you always face legal and factual risks about the state of such property. To minimize them, it is recommended to hire an attorney who will prepare a due diligence report on the state of a particular property. He will not only check the information from the perpetual book (whether the property is mortgaged or subject to a right of occupancy), but he will also check in the population register whether there are no “squatters”'; and, if the property is purchased from a trader, verify that there are no public charges which have been secured on the property in the form of a mortgage.

The worst scenario is when the seller of an estate is the debtor of a third person, and such a third person may demand to declare the deed of sale of the property ineffective about such a third person (action paulliana from Latin). The attorney will also check this matter in his due-diligence report.

Mr. Ivan Močić (WOLEP member, Croatia)

Ivan Močić (Croatia): The most efficient way to avoid any risk and secure the investment in the real estate is to hire competent persons. One has to be thoroughly acquainted with the status of every specific real estate he is interested in buying and with the procedure he has to go through. The task of a lawyer  is to avoid the potential risks by doing the checking of the documentation and being careful and prompt during the process of the sales and purchase. The lawyer most importantly has to do the quality due dilligence report (check all the informations in the land registry book, the cadastre, check the proof of origin, are there any collaterals, construction status, etc.) in order for the sale and purchase to go smoothly.

Vincenzo di Lorenzo Sarappa (Italy): I tend to believe that all the risks that lie below any acquisition of real estate must be faced and dealt with outside the contract and before it. Even the most efficient and convenient clauses may procure no benefit to the buyer if he/she did not perform proper due diligence.

For example, one of the most important issues that the buyer must take into account is the proof of origin of the real estate, i.e. the title by virtue of which the seller is entitled to sell the ownership right. If that title is represented by a deed of gift made by the seller's parents it is essential to verify whether there are, or even there may be in future, potential “forced heirs'' (eredi legittimari in Italian Law), that might claim rights on that real estate and challenge the deed of gift. It is important to note that many times the banks do not grant any loan to the buyer if the proof of origin of the real estate he/she wants to buy is a deed of gift.

From another point of view, the buyer should also verify if the person selling the property is entitled to it: the cases of acquisition “a non-domino” are quite an issue for the buyer, who however has legal remedy to guarantee his/her right (nevertheless, not always he can obtain the right of ownership, but only if some conditions occur). Even in this case the inspection of the Land Registry is essential. Apart from those observations, it is obvious that a good and simple contract, both the preliminary agreement and the final deed, can always give benefits to the buyer. So, it is important to provide contractual penalties in case of breach of contract by the seller, for example if he/she does not hand over the possession of the real estate in the due time, or if some hidden defects come out. In this latter case, it is advisable to attach to the preliminary agreement and/or the public deed a guarantee insurance policy or surety policy issued by an insurance company or a bank.

Domagoj Olujić (Croatia): Of course no transaction and legal business is risk free, but it is advised to implement all the precautions possible in order to avoid unnecessary risk and that is done by hiring a Lawyer that will accompany a client on his way to reach his legal goal.

Luka Kokić (Serbia): Green investments are still underdeveloped in Serbia, especially in terms of tax incentives for such investments. In this sense, currently, there are no tax benefits for „green” investments in real estate.

Silvio de Candia (Spain): Yes. In this sense, we have been offering incentives for solar panels and other types of infrastructures for properties for a couple of years that encourage real estate transactions with lower utility costs and take advantage of alternative energy sources.

About all this I would say that we will see in the coming years how this type of policy evolves and if we can count on more options. This will also depend on how current and future legislation advances and is applied.

Kamil Bechta (Poland): City councils can pass a bill where is stated that building owners who decide to green the façade of the building using plants rooted in the ground, such as using ivy or other climbing plants; to create a green roof, i.e. a garden on top of the building; to establish a vertical garden, i.e. a vertical garden covering at least half of the wall will be exempt from property tax. Slowly but steadily such a law is passed in more and more Polish cities.

Another bill that enables an owner to benefit from tax credit is that a homeowner or co-owner can deduct expenses for green heating from their income.

Ivan Močić (Croatia): I am personally not so familiar with eventual tax incentives regarding the "Green" real estate investments. Most lawyers in Croatia are not. I would recommend EU funds experts in this department.

That being said, one of most popular investments in this department in Croatia includes solar panels. The authority shares subsidy for such investments, which makes it that more desirable.

Vincenzo di Lorenzo Sarappa (Italy): Italian Law provides many tax incentives for green investments, both for residential and industrial real estate. The topic is so wide that it should be faced in a specific discussion.

However, we can say that Italian Law is integrated within the EU Renovation Wave Program, whose target is to reduce the emission of greenhouse gases by 60% in 2030. So, the renovation of existing buildings with green technologies, or the construction of new buildings with the most efficient green tools is an essential step to reach the target set by the EU.

Following that path, Italy has included the purposes of the Renovation Wave program in the “PNRR” - id est Piano Nazionale di Ripresa e di Resilienza – that provides three strategic axes: digitization and innovation, ecological transition, and social inclusion.

As to the ecological transition, the targets of the PNRR are primarily carried out by the “Italian Strategy for the energy renovation of the national real estate stock” (“Strategia italiana per la riqualificazione energetica del parco immobiliare nazionale”), according to which are established several incentives for Green Investments, such as, among others: ECOBONUS (decreto-legge 4th June 2013, n,. 63), SISMABONUS (decreto-legge, 19th June 2020, n. 34) BONUS RISTRUTTURAZIONI EDILIZIE (art.16-bis del D.p.r. 917/86) SUPERBONUS 110% (art. 119 decreto legge n. 34/2020) BONUS VERDE (art. 1, comma 12 della Legge n. 205 del 2017).

Basically, the tax incentives focus on the mechanism of tax detraction of a certain percentage of the amount invested (for example: 50% for BONUS RISTRUTTURAZIONI EDILIZIE: the deduction must be divided into 10 equal annual installments; 36% for BONUS VERDE, even in this case the deduction must be divided into 10 equal annual installments; up to €96.000,00 for SISMABONUS).

An alternative mechanism is represented by the assignment of tax receivables or transfer of tax credit, in the same amount admitted for the tax detraction: the investor can sell his/her tax receivable to a bank or the construction company and obtain a considerable discount on the price he will pay. Even at the industrial level the law provides the same mechanisms when the company invests in green technologies, such as photovoltaic panels or other capital goods and equipments. Well, as you can see, it is very convenient to invest in green technologies in Italy when buying real estate!

Domagoj Olujić (Croatia): There are no incentives provided by law in Croatia regarding ''green' real estate investments. However, it is advisable to contact a consultant regarding obtaining funds from the EU in regards to ''green'' real estate investments, because there can be a way to withdraw EU funds this way in cooperation with a consultant specialised in this field.

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