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Street on Hvar, Croatia

Full Guide for Foreign Real Estate Buyers in Croatia

Split, croatia
Why Foreigners Are Investing in Croatian Real Estate

Croatia continues to attract foreign property investors for several reasons:

  • High Demand: Nearly 20% of all property transactions in Croatia involve foreign buyers.

  • Affordability: Compared to other EU countries, property prices in Croatia are still relatively low.

  • Stability: Real estate is seen as a hedge against inflation, offering long-term security.

  • No Annual Property Tax: Unlike many EU countries, Croatia does not charge ongoing property tax—ideal for long-term investors.

Real Estate Transfer Tax: What You’ll Pay
  • The buyer is responsible for the tax.

  • Tax is 3% of either the contracted price or market value—whichever is higher.

  • The sale must be reported to the Tax Administration within 30 days of contract signing.

  • Once the tax decision is issued, payment must be made within 15 days.

  • New construction purchases may be exempt if VAT (PDV) has already been applied.

Who Can Buy Property in Croatia?

EU Citizens
  • Can buy most types of property, including homes and apartments.

  • No need for Ministry of Justice approval.

  • Restrictions: Agricultural land (until mid-2023 in most regions), protected nature areas, and national parks.

Non-EU Citizens
  • Purchase is possible if a reciprocity agreement exists between your home country and Croatia.

  • Must obtain Ministry of Justice approval before registration.

  • Once approved, the buying process is similar to that for Croatian nationals.

🔗 You can check reciprocity status at mpu.gov.hr

Step-by-Step Purchase Process
  1. Find the Right Property
    Work with a buyer’s agent familiar with the Croatian market.

  2. Document Verification
    Confirm ownership, zoning, and legal permits—especially for new constructions.

  3. Sign a Sales Contract
    Usually takes a few weeks; your lawyer will review or draft this.

  4. Report to the Tax Office
    This is often done through a notary, lawyer, or court—especially in private sales.

  5. Pay the 3% Transfer Tax
    You’ll receive a tax notice and have 15 days to make the payment.

  6. Register Ownership
    After payment, your ownership is recorded in the e-Land Registry, Croatia’s official database.

Understanding the Tax Law
  • Applies not only to purchases, but also gifts, exchanges, inheritances, and court rulings.

  • Buyer is always the taxpayer.

  • The market value is determined by the Tax Office using local sales data or appraisals.

  • No difference in tax rules for individuals vs. companies, unless stated in international agreements.

Planning to Rent the Property?

EU Citizens & Croatian Residents
  • May qualify for flat-rate tax on rental income.

  • Ideal for short-term seasonal rentals and vacation homes.

Non-EU Citizens
  • Advised to form a company (d.o.o.) in Croatia before renting.

  • The company would own the property and handle rentals for a clearer tax position.

  • Avoids complications with permits, taxes, and income reporting.

Final Tips Before You Buy
  • Work with a Croatian real estate lawyer to verify ownership, permits, and land registry status.

  • Choose a licensed real estate agent who has experience working with foreign buyers.

  • Be patient—processing times for approvals and registrations can vary by region and property type.

Quick Reference Checklist

✔️ EU citizen? You can buy with few restrictions
✔️ Non-EU? Check reciprocity + get Ministry approval
✔️ Buyer pays 3% tax on property value
✔️ No annual property tax on owned real estate
✔️ Want to rent? Non-EU citizens should consider buying through a Croatian company

📩 Need expert help?
At Breeza Consulting, we can assist you with scouting the right location, connecting with agents, legal guidance, and post-purchase support.

 Helping You Find & Manage Property in Croatia 

Breeza Abroad is more than consulting—it’s a compass for souls in transition. I help families and dreamers create freedom-filled lives abroad through real estate, relocation, and emotional guidance. Rooted in personal experience, Breeza bridges the gap between the dream and the doing—with ease, empathy, and clarity. Whether you're seeking a new home, a new start, or a new way of being—you belong here.

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+385 916171818

Split, Croatia 21000

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