St. Julians, Malta
Dragonara Business Centre, Office 506, Dragonara Road,
Paceville, St Julian’s, STJ 3141 Malta
+356 (277) 811-04
Vienna, Austria
Doblhoffgasse 9, 1010
+43 (650) 540-49-79
All offices

Real estate investment in Croatia

To purchase a property in Croatia, one must get approval from the Minister of Justice. Foreigners can rent out real estate only through a legal entity if it’s a Croatian company.

Statistics confirm the liquidity of investments: residential real estate prices grow every quarter by an average of 2%. Five years ago, an apartment of 100 m² cost an average of €183,000, and today it is sold for €244,000.

€2,436 Average price per 1 m²
of housing in Croatia
2% Average price per 1 m²
increase per quarter
4—30% Buyers’ related expenses,
of the transaction amount

Cost of a 3-bedroom apartment in Croatia

€2,7 million

Penthouse in Opatija,
a 5-minute walk from the sea

€1,5 million

Apartment in Opatija,
a 5-minute walk from the sea

€200,000

Apartment in Zagreb

What do investors buy?

Croatia’s most expensive real estate is in the capital, Zagreb, and the resort towns of Dubrovnik and Opatija.

Apartments

  • penthouses
  • duplexes
  • apartment

House

  • mansions
  • villas
  • castles

Croatia residence permit or citizenship by real estate investment

Obtaining a Croatia residence permit or citizenship is not connected with purchasing real estate.

40+ guides on European countries

Learn the prices for purchasing and renting a property in each country, the market dynamics and taxes on buying and selling real estate.

All countries

Get a real estate market analysis of all European countries

Download the guide

Taxes and associated costs

Purchase
Ownership
Sale

Buyers of real estate in Croatia pay a value-added tax for new buildings or a transfer tax for secondary real estate and additional fees.

Associated costs are approximately 4% to 30% of the purchase agreement value. When buying a new apartment worth €1 mln, the investor will spend €1.28 mln, including additional costs.

4—30% Of the contract value are related costs for the purchase of housing in Croatia
Purchase expenses
New buildings

VAT

25%

Of the transaction amount

Secondary housing

Transfer tax

3%
Registration fee
0.01—0.05%

 Of the transaction amount

Legal support of the transaction

It is not necessary to involve a lawyer

1—2%

Of the transaction amount

Agency fee

Share paid by the buyer

2—4%

Depends on the agency,

VAT included

Taxes

Owners pay an annual tax of 1.5% of the appraised property value, approximately 70% of the average market price.

Rental income is included in the income tax of 12%.

€1,540 Approximate annual costs for
maintenance of an apartment

Communal payments

Electricity, gas, water, heating, and garbage collection
€85—189 

per month

Internet, TV and telephone
€8—17 

Per month 

Sellers pay a capital gains tax of 24% on the difference between the sale and purchase prices.

The agency fee ranges between 2% and 4%.

24% Capital gains tax on the sale of
real estate in Croatia
Expenses on the sale
Capital gains tax

Paid on the difference between the sale and purchase prices

24%
Agency fee

Share paid by the seller

2—4%

Depends on the agency,

VAT included

Frequently asked questions

Can foreigners buy property in Croatia?

Yes, but first they need to get permission from the Minister of Justice. Foreigners can also rent out real estate, but only through a legal entity — a Croatian company.

Is real estate cheap in Croatia?

It’s average: real estate prices in Croatia are growing in the same way as the European Union average. Estimated price is €2,436 per 1 m². Housing prices depend on the area, type and location. For example, a two-room apartment with a terrace overlooking the mountains will cost an average of 300,000 euros, and a standard three-room city apartment will cost 200,000 euros.

Is Croatia a good place to invest in real estate?

Yes. Residential real estate prices in Croatia are growing every quarter by an average of 2%. Five years ago, an apartment of 100 m² costed around 183,000 euros, and today it can be sold for 244,000 euros.

Do you pay property taxes in Croatia?

Yes. Buyers of real estate in Croatia pay a 25% value-added tax for new buildings or a 3% transfer tax for secondary real estate.

Property owners in Croatia pay an annual property tax of 1,5% of the estimated value of the property, which is approximately 70% of the average market price. Landlords pay a 12% income tax.