Why Foreigners Are Investing in Croatian Real Estate
Croatia continues to attract foreign property investors for several reasons:
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High Demand: Nearly 20% of all property transactions in Croatia involve foreign buyers.
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Affordability: Compared to other EU countries, property prices in Croatia are still relatively low.
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Stability: Real estate is seen as a hedge against inflation, offering long-term security.
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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
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The buyer is responsible for the tax.
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Tax is 3% of either the contracted price or market value—whichever is higher.
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The sale must be reported to the Tax Administration within 30 days of contract signing.
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Once the tax decision is issued, payment must be made within 15 days.
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New construction purchases may be exempt if VAT (PDV) has already been applied.
Who Can Buy Property in Croatia?
EU Citizens
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Can buy most types of property, including homes and apartments.
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No need for Ministry of Justice approval.
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Restrictions: Agricultural land (until mid-2023 in most regions), protected nature areas, and national parks.
Non-EU Citizens
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Purchase is possible if a reciprocity agreement exists between your home country and Croatia.
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Must obtain Ministry of Justice approval before registration.
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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
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Find the Right Property
Work with a buyer’s agent familiar with the Croatian market. -
Document Verification
Confirm ownership, zoning, and legal permits—especially for new constructions. -
Sign a Sales Contract
Usually takes a few weeks; your lawyer will review or draft this. -
Report to the Tax Office
This is often done through a notary, lawyer, or court—especially in private sales. -
Pay the 3% Transfer Tax
You’ll receive a tax notice and have 15 days to make the payment. -
Register Ownership
After payment, your ownership is recorded in the e-Land Registry, Croatia’s official database.
Understanding the Tax Law
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Applies not only to purchases, but also gifts, exchanges, inheritances, and court rulings.
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Buyer is always the taxpayer.
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The market value is determined by the Tax Office using local sales data or appraisals.
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No difference in tax rules for individuals vs. companies, unless stated in international agreements.
Planning to Rent the Property?
EU Citizens & Croatian Residents
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May qualify for flat-rate tax on rental income.
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Ideal for short-term seasonal rentals and vacation homes.
Non-EU Citizens
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Advised to form a company (d.o.o.) in Croatia before renting.
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The company would own the property and handle rentals for a clearer tax position.
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Avoids complications with permits, taxes, and income reporting.
Final Tips Before You Buy
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Work with a Croatian real estate lawyer to verify ownership, permits, and land registry status.
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Choose a licensed real estate agent who has experience working with foreign buyers.
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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.