A Complete Guide to Buying Real Estate in Croatia as a Foreigner

Why Foreigners Are Investing in Croatian Real Estate

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• Strong demand: A fifth of property transactions in Croatia are made by foreign buyers.

• Affordable pricing: Croatian real estate is still budget-friendly compared to other EU hotspots.

• Safe investment: In a time of persistent inflation, real estate is seen as a secure way to preserve value.

• No annual property tax: Property owners in Croatia do not pay annual taxes on their real estate, making it a particularly attractive long-term investment.

 

Real Estate Transfer Tax: What You’ll Pay

• Buyer pays the tax.

• The real estate transfer tax is 3% of the agreed purchase price (or market value, whichever is higher).

• You must report the sale to the Tax Administration within 30 days of the contract date.

• Once the tax decision is issued, payment is due within 15 days.

Tip: If you buy new construction and VAT (PDV) has already been paid, you might be exempt from paying the 3% transfer tax.

 

Who Can Buy Property in Croatia?

Citizens of EU Member States

• You can buy most types of property just like Croatian citizens.

• No special permission is needed from the Ministry of Justice.

• Restrictions:

  • Agricultural land (until mid-2023 and in some areas even beyond)

  • Nature reserves and national parks

Citizens of Non-EU Countries

• You can buy property if there is reciprocity between your home country and Croatia.

• You’ll need Ministry of Justice approval before registering the property.

• Once approved, the rest of the process is similar to that for Croatian citizens.

You can check reciprocity agreements on Croatia’s official Ministry of Justice website: mpu.gov.hr

 

The Purchase Process – Step by Step

1. Find the Property: Work with an agent or buyer’s advocate familiar with the local market.

2. Verify the Documents: Confirm ownership, zoning, and permits (especially building permits for new builds).

3. Sign the Contract: Often takes a few weeks to finalize while gathering documents.

4. Report to Tax Office: Usually done by a notary or court, but you may need to do it yourself if it's a private sale.

5. Pay the Transfer Tax: Once notified by the Tax Administration, you have 15 days to pay.

6. Register Ownership: After tax is paid, your name is entered in the land registry.

Ownership information and land registry data can be checked online through Croatia’s e-Land Registry system.

 

Understanding the Real Estate Transfer Tax Law

• Applies to sales, gifts, exchanges, inheritances, court decisions, and more.

• The taxpayer is always the buyer.

• The tax base is the market value, determined by the Tax Administration using comparative sales data or an appraisal.

• Legal entities and individuals are treated equally under tax law, unless otherwise stated in international agreements.

 

Planning to Rent Out the Property?

EU Citizens & Croatian Residents

• Favorable tax treatment.

• If renting as a private person, you may qualify for flat-rate taxation on rental income.

• Great for seasonal rentals or second homes.

Non-EU Citizens

• If planning to rent, it's best to set up a Croatian company.

• The company owns the property and handles rentals.

• This avoids complications and gives you clearer tax status.

If your goal is to invest in a property that generates income, consider forming a d.o.o. (limited liability company) before purchase.

 

Final Tips

• Work with a local lawyer to check contracts, permits, and land registry status.

• Use a licensed real estate agent who knows the foreign buyer process.

• Be patient—documents, approvals, and processing times can vary.

 

✅ Summary Checklist

✔️ EU citizen? You can buy with few restrictions
✔️ Non-EU? Check reciprocity + get Ministry approval
✔️ Buyer pays 3% tax on property value
✔️ Report purchase to Tax Office within 30 days
✔️ Plan to rent? Consider owning via company (if non-EU)
✔️ No annual property tax on owned real estate

 

Have questions about buying property in Croatia or want help navigating the process? We can assist with location scouting, agent connections, legal referrals, and setup—so you can relax and enjoy your new home or investment in this beautiful country.

📩 Get in touch with us at www.breezaconsulting.com

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