Step-by-Step Guide to Buying Property in Croatia
If you're a foreign citizen exploring the idea of buying real estate property in Croatia—whether for investment, vacation, or relocation—you’re not alone. Real estate in Croatia is becoming increasingly popular with foreign buyers, and for good reason: it's still significantly more affordable than in many other EU countries, offers strong long-term value, and isn't subject to annual property tax.
Here’s everything you need to know about purchasing property in Croatia as a foreigner, including the process, taxes, legal requirements, and tips if you’re planning to rent it out.
Key Facts for Foreign Buyers
Why Foreigners Are Investing in Croatian Real Estate
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Strong Demand: About 20% of property sales in Croatia involve foreign buyers.
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Affordable Prices: Croatian real estate is more budget-friendly than other EU hotspots.
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Safe Investment: A reliable way to protect value during inflation.
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No Annual Property Tax: You won’t pay recurring property taxes.
Costs and Taxes When Buying Property
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Buyer Pays 3% of purchase price or market value (whichever is higher).
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Must report the sale within 30 days and pay tax within 15 days of receiving the notice.
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New builds with VAT paid may be exempt from this tax.
Who Can Buy Property in Croatia? Can Foreigners Buy Real Estate in Croatia?
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EU Citizens: Can buy most property types with no special permissions.
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Non-EU Citizens: Can buy if reciprocity exists; must get Ministry of Justice approval.
Basic Purchase Process
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Find a Property
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Verify Ownership & Permits
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Sign the Contract
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Report to Tax Office
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Pay Transfer Tax
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Register Ownership
Renting Out the Property
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EU Citizens: Can rent directly; may benefit from flat-rate tax on income.
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Non-EU Citizens: Best to set up a Croatian company (d.o.o.) to handle rentals.
Final Tips
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Work with a local lawyer
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Use an experienced real estate agent
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Expect some delays with approvals
Quick Checklist
✔️ EU citizen? Few restrictions
✔️ Non-EU? Check reciprocity + get approval
✔️ 3% property transfer tax
✔️ No annual property tax
✔️ Planning to rent? Consider company ownership