How to Choose Real Estate in Croatia?


Consider This When Buying Real Estate in Croatia

Some of these might seem intuitive, but they’re worth mentioning. Consider:

  1. How much money you’re willing (or able) to spend;
  2. Where (precisely) you would like to live;
  3. Whether you’re looking for a permanent or summer home;
  4. Must-haves - what the property must have in order for you to even consider it;
  5. Deal-breakers - what will definitely mean the property is a no-go for you;
  6. The legal aspect and taxation.

Can Non-Croatian Citizens Buy Property in Croatia?

EU citizens have the same right to buy property in Croatia as Croatian citizens do. However, you’ll need to obtain permission from the Croatian Ministry of Justice. Application details can be found on the e-Citizen platform but, really, it’s a matter of a simple written request being sent to the Ministry of Justice and Public Administration.

What about non-EU citizens? You can still buy real estate in Croatia if you don’t come from the EU, but these purchases are regulated by the Reciprocity Agreement Croatia has with certain countries. In short, your country must have such a signed agreement with Croatia. To check if your country does, search for it on the Croatian Ministry of Justice and Public Administration’s website.

One caveat is that only Croatian citizens can buy agricultural land, at least until 2023.

More information on being granted permanent residence (or temporary residence for that matter) in Croatia can be found on the website of the Ministry of Foreign and European Affairs.

What about Taxes?

The main tax would be the 3% property transfer tax. As the name states, you have to pay this tax only if the property is being transferred (bought, gifted or inherited), but not if you’re buying a newly-built property i.e. one that’s being sold for the first time. The market value of the property at the moment of contract signing is taken as the tax base.

Though the real estate transfer tax has been lowered since 2017, the VAT rate remains 25% on VAT-charged property transactions.

Owners of holiday homes also have to pay a tax between 5 and 15kn/m2 of the living area (depending on the location and other factors).

The notary public you visit for signing the necessary documentation (pre-contract agreements of the contract itself) will be responsible for registering tax information so you don’t have to worry. They’ll be sure to send you the bill.

The Location Determines the Price

Even with the pandemic going on, new real estate prices rose in 2020 by 3.1%, resulting in a price of 12,724 kn/m2. Average new property prices vary greatly depending on the city. Here’s a brief overview of the prices in 2020:











Property prices of towns along the coast might be the highest, but many consider them the perfect places to live given the fantastic climate, natural beauty, and great reselling potential (if you’re looking into that option).

Croatian Property Sales are here to help you choose the perfect property in Croatia for your needs. You won’t have to worry because all of the pieces of property listed on our site have clean records and are zoned, which is vital for you to be able to make your purchase and enjoy your new home as soon as possible!

Bookmark and Share