The content of the article:
In January 2023, Croatia (after ten years of being part of the EU) became another country of the Schengen area, which influenced the change of the national currency (kuna) to the euro. And despite analysts' forecasts that real estate prices will not grow much, literally in a year the average price per square meter increased by almost 21%, reaching a record figure of € 3,223 per square meter. Of course, this cost depends on the location of the object, the year of construction (secondary or new building), on the condition (repair is required or not). At the same time, according to the Statistical Office, in the first months of 2024, prices in the secondary real estate market increased by 9.5%, and for new buildings — by 6.8%. What are the forecasts for the end of the year? Due to the increase in prices and to protect its citizens, the Croatian government has introduced a real estate tax to regulate rentals. This tax is intended to resolve the imbalance between the taxation of short-term and long-term rentals. The new tax will not apply to residential real estate for permanent residence, as well as to objects that are rented out for long-term rent. Perhaps the information about these changes in tax legislation has stirred up a large number of buyers of Croatian real estate. Analysts predict that there will be no further increase, but no one guarantees this.
Of course, apartments and houses are mostly bought up on the Adriatic coast of the country. Although at the beginning of 2024, the price increase did not occur there or in the capital of Croatia, Zagreb, but in other regions where real estate prices are more affordable. This is primarily due to the fact that many foreign investors prioritize not only the “first coastline”, but also developed infrastructure, landscape and nature. The main buyers of real estate on the Croatian coast have long been citizens of Germany and Austria, but in 2023 and early 2024, most of the transactions were made by citizens from other countries. This is also due to the fact that in the current economic and political situation, many entrepreneurs prefer to withdraw savings from banks and buy real estate. Due to the stable demand for tourist accommodation and rentals, in the popular and sought-after regions of Croatia, the annual income from rent can reach 8-10%.
The main objectives of foreigners in the Croatian real estate market are:
Despite the fact that the state is investing in the construction of new residential complexes, nevertheless, due to a certain geographical location, not all plots of land are suitable for this, therefore it is becoming increasingly difficult to find a suitable object in popular tourist areas — Dubrovnik, coastal Istria, Split and Zagreb. We advise you to pay attention to the commercial facilities offered in our catalog
It should be noted that citizens of the member States of the European Union or one of the four European countries for which the same rules apply can purchase real estate on the same terms as citizens of the Republic of Croatia. They do not need consent from the Ministry of Justice and the Administration. But there are certain requirements for foreigners from other countries.
Instructions for foreign buyers from non—EU countries:
Croatia is attractive for its ecology, clean beaches and mineral springs. The tourist season is open in the country all year round, and ski resorts are not inferior to Switzerland and Austria, although they are much cheaper. There are many business niches in Croatia that can be occupied by entrepreneurs from different countries: wellness centers and spa hotels, parking lots, new residential complexes for the local population, etc. Our experts will help you decide on the choice of an object and make the right purchase.
