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
of housing in Croatia
2%
Average price per 1 m²
increase per quarter
increase per quarter
4—30%
Buyers’ related expenses,
of the transaction amount
of the transaction amount
How the residential property price index is growing in Croatia
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.
Portugal
Malta
Austria
Greece
Andorra
Italy
Turkey
Montenegro
Switzerland
Cyprus
Spain
Germany
France
All countries
Taxes and associated costs
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
maintenance of an apartment
Communal payments
Electricity, gas, water, heating, and garbage collection |
€85—189per month |
Internet, TV and telephone |
€8—17Per 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
real estate in Croatia
Expenses on the sale
Capital gains taxPaid on the difference between the sale and purchase prices |
24% |
Agency feeShare 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.
