Croatia, with its stunning Adriatic coastline, historic cities, and growing real estate market, has become a popular destination for property investors, retirees, and second-home seekers. Whether you’re looking for a seaside villa, a modern apartment in Zagreb, or a countryside retreat, buying property in Croatia in 2025 is increasingly accessible – but it comes with its own rules and costs. This guide breaks down everything you need to know before making the leap.
Who Can Buy Property in Croatia?
Croatia allows foreign nationals to purchase real estate, but the process and rules vary depending on your nationality:
- EU/EEA Citizens can buy almost all types of property (residential, commercial, and urban land), except protected cultural sites, military zones, and maritime domains.
- Citizens from outside the EU (e.g., US, UK) may purchase real estate if their country has a reciprocity agreement with Croatia. Agricultural and forest land, however, remains off-limits unless the buyer forms a Croatian company.
- Via a Croatian Company: Anyone, regardless of nationality, can acquire all types of property—including agricultural land—if they establish a Croatian legal entity.
Note: Ownership does not automatically grant residency rights. Property owners can apply for a temporary stay permit (typically one year), but it must be renewed annually, with specific stay limits in place.
What Are Property Prices Like?
Croatia’s real estate market continues to grow steadily. As of mid-2025:
- Zagreb averages around €2,630 per m², up nearly 9% year-on-year.
- Split sees €3,100 per m² on average, with luxury coastal properties exceeding €3,700.
- Dubrovnik Old Town commands €3,700–4,200 per m² due to strong tourist interest.
- Pula and Istria range between €2,500–2,880 per m².
- Osijek offers some of the most affordable options, averaging €1,000–1,050 per m².
Price growth remains steady across the board, supported by both domestic demand and foreign interest.
The Buying Process: Step-by-Step
- Obtain a Croatian Tax Number (OIB)
A personal identification number is mandatory for any legal or financial transaction. It can be secured easily at a local tax office. - Due Diligence and Legal Support
Hire a qualified legal representative to:- Review land registry (Zemljišna knjiga)
- Confirm zoning and building permits
- Verify there are no encumbrances or co-owner disputes
- Pre-Contract Agreement (Predugovor)
This outlines the terms and secures the deal with a 10% deposit (kapara), typically held in escrow. - Ministry of Justice Approval (for Non-EU Buyers)
Required before the buyer can register as the legal owner. This can take 30–180 days. - Final Contract and Notarization
After ministry approval (if needed), the sale contract is signed in front of a notary. - Tax Payment and Registration
- Real Estate Transfer Tax is 3% of the purchase price (unless you’re buying new property from a developer, which is subject to VAT instead).
- Ownership must be recorded in the land registry.
Expect total transaction costs (including taxes, notary, lawyer, and registry fees) to add around 7–10% on top of the sale price.
New Taxes and Regulations in 2025
Starting January 2025, Croatia has introduced a national annual property tax ranging from €0.6 to €8 per m², depending on property type and location. Main residences and long-term rentals (10+ months per year) may be exempt.
Planning to rent your property short-term? You’ll need a Tourism Accommodation Permit, including local inspections and, in some areas, approval from your building’s other residents. Cities like Dubrovnik and Split have begun capping the number of these permits to control over-tourism.
Financing Options
Croatian banks do offer mortgages to non-residents, though conditions are stricter than for locals. Typical loan features:
- Loan-to-Value (LTV) ratio up to 70%
- Minimum 30–50% down payment for non-residents
- Interest rates range from 3.7% to 5.9%
- Loans are released only after a signed pre-contract
Borrowers often need to purchase life and property insurance and meet income verification requirements.
Common Pitfalls to Avoid
| Pitfall | How to Avoid |
|---|---|
| Illegal construction or unregistered renovations | Always check for up-to-date building/use permits and match with cadastral records |
| Co-ownership or inheritance disputes | Have a lawyer confirm ownership and obtain formal written consent from all parties |
| Misleading zoning designations | Verify land use plans with the municipal authority |
| Over-optimistic rental income projections | Research local permit limits and seasonal occupancy trends |
Buying property in Croatia is a well-regulated but paperwork-heavy process. It offers strong lifestyle appeal and growing investment potential—especially along the coast and in capital city Zagreb. However, buyers should be prepared for strict due diligence, evolving tax rules, and region-specific rental regulations.
Careful planning, legal guidance, and a clear financial strategy are essential. With the right approach, Croatia can offer not just a beautiful home but also a stable long-term asset in the heart of Europe.