Authored by the expert who managed and guided the team behind the Croatia Property Pack
Everything you need to know before buying real estate is included in our Croatia Property Pack
Croatia offers more affordable property prices and simpler foreign ownership rules compared to Spain, making it an attractive alternative for international investors in 2025.
While Spain has a more developed rental market infrastructure and higher property values, Croatia provides better entry-level investment opportunities with strong growth potential, especially for EU citizens looking to invest in Mediterranean coastal property without the premium prices of Spanish destinations.
If you want to go deeper, you can check our pack of documents related to the real estate market in Croatia, based on reliable facts and data, not opinions or rumors.
Croatia emerges as the more accessible option with lower purchase prices, simpler foreign ownership processes, and competitive rental yields.
Spain offers superior infrastructure and expat amenities but faces potential restrictions for non-EU buyers and higher overall costs.
| Comparison Factor | Croatia | Spain |
|---|---|---|
| Average Price per m² | €2,050–€3,834 | €2,237 (Madrid/Barcelona €3,937+) |
| Annual Property Tax | 0.2–0.5% of property value | 0.8% of property value |
| Foreign Buyer Access | Open for EU citizens, restrictions for non-EU | Proposed 100% tax for non-EU buyers in 2025 |
| Rental Yields | 4–6% in prime areas | 3–5.5% in key cities |
| Total Purchase Costs | 6–7% of purchase price | 10–12% of purchase price |
| Market Growth (2024) | 7.9% year-on-year | 9.2% year-on-year |
| Mortgage Availability | Limited, 60–70% LTV | Wide availability, 60–70% LTV |
How much does it actually cost per square meter to buy property in Croatia compared to Spain?
Croatian property prices range from €2,050 to €3,834 per square meter as of September 2025, with coastal cities like Split and Dubrovnik commanding the highest prices at €2,700+ per square meter.
Spanish property prices average €2,237 per square meter nationwide, but major cities like Madrid (€4,030/m²) and Barcelona (€3,937/m²) significantly exceed Croatian coastal prices. However, Spain offers cheaper provinces where prices can drop below €800 per square meter.
Rural Croatian areas cost between €1,500-€1,900 per square meter, making them more affordable than Spanish rural properties in popular regions. Croatian coastal properties still cost 20-30% less than equivalent Spanish Mediterranean locations like Costa Brava or Costa del Sol.
For international buyers seeking Mediterranean coastal property, Croatia provides better value with comparable quality and climate conditions.
The price difference becomes especially significant when considering luxury properties, where Croatian premium locations cost €3,000-€4,000 per square meter compared to €5,000-€8,000 in equivalent Spanish coastal destinations.
What are the annual property taxes and ownership costs in both countries?
Croatia introduced a new annual property tax system in 2025 with rates of 0.2% of property value for main residences and 0.3-0.5% for recreational or holiday homes.
Spanish annual ownership costs average 0.8% of property value, including the IBI property tax at approximately 0.15% of cadastral value, plus community charges and utilities. Total ownership taxes in Spain range from 0.4-1.1% of cadastral value depending on location.
Croatian property owners also pay between €0.60-€8.00 per square meter according to local municipal rates, replacing previous flat-rate municipal taxes. This system generally results in lower overall tax burden compared to Spain.
Spanish property owners face additional community charges typically ranging €50-100 per month, plus utilities averaging €41 monthly. Croatian community fees and utilities total approximately €85-€189 per month.
Overall, Croatian annual ownership costs run approximately 30-40% lower than Spanish equivalent properties, making Croatia more cost-effective for long-term ownership.
How easy is it for a foreigner to legally buy and own property in Croatia versus Spain?
EU citizens can purchase almost any Croatian property with minimal restrictions, following standard European property acquisition procedures.
Non-EU citizens can buy Croatian property through reciprocity agreements or by forming a local company, though purchasing agricultural or forest land remains generally prohibited for foreigners.
Spain traditionally maintained open property markets for all foreigners, but 2025 proposals aim to impose a 100% purchase tax for non-EU, non-resident buyers, effectively doubling their costs. This reform remains under debate and has not yet been enforced.
Croatian foreign ownership processes require modest additional paperwork for registration but present no major obstacles for legitimate buyers. The legal framework provides clear guidelines and established procedures.
For non-EU buyers, Croatia currently offers significantly easier access than the proposed Spanish restrictions, making it the preferred destination for international property investment.
What are the average rental yields in popular areas of Croatia compared to Spain?
| Location Type | Croatia Gross Yields | Spain Gross Yields |
|---|---|---|
| Tourist Hotspots | 4-6% annually | 4-7% (tourist rentals) |
| Major Cities | 4-5% annually | 3-5.5% annually |
| Coastal Premium Areas | 5-6% annually | 3-4% annually |
| Monthly Rent per m² | €10-€15 in attractions | €19.5 Barcelona, €18.2 Madrid |
| Peak Season Boost | Up to 8% in Dubrovnik | Up to 8% in Barcelona/Madrid |
| Long-term Stability | Growing demand | Strong but regulated |
| Holiday Rental Potential | High in coastal areas | High but restricted |
How strong and reliable is the long-term property market growth in both countries?
Croatian property market demonstrated strong growth with 7.9% year-on-year price increases in 2024, supported by EU harmonization and growing international appeal.
Spanish property prices grew 9.2% year-on-year nationwide, with major cities like Madrid and Valencia experiencing gains of 12-18%. The Canary Islands also showed significant growth above the national average.
Croatia benefits from OECD membership and EU integration, suggesting continued stability and institutional development supporting long-term market growth. Tourism infrastructure investments and EU development funds provide additional growth catalysts.
Spanish market growth faces potential headwinds from new non-EU buyer restrictions and supply-demand imbalances in major cities. However, established international demand and mature infrastructure support continued appreciation.
Croatia offers more sustainable growth potential due to lower current valuations and increasing international recognition, while Spain may face moderation after recent rapid gains.
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What are the upfront buying costs like notary fees, registration fees, and agency commissions in each country?
Croatian upfront purchase costs total approximately 6-7% of the property purchase price, including a 3% real estate transfer tax plus notary, registration, and agency fees.
Spanish upfront costs reach 10-12% of purchase price, with new homes incurring 10% VAT and resale properties subject to 6-10% transfer tax (ITP), plus notary, registration, legal, and agency fees.
Croatian buyers benefit from lower total transaction costs, making property acquisition more affordable. The standardized 3% transfer tax applies uniformly across the country.
Spanish costs vary significantly by region and property type, with Andalusia and Madrid charging higher transfer taxes than other autonomous communities. New construction carries additional VAT burden.
For a €300,000 property, Croatian buyers pay approximately €18,000-€21,000 in total costs, while Spanish buyers face €30,000-€36,000 in transaction expenses.
How does the process and timeline of purchasing property differ between Croatia and Spain?
Croatian property purchase process typically takes 1-3 months, including due diligence, contract negotiation, and registry updates.
Spanish transactions also require 1-3 months for completion, following standard European procedures with reservation contracts, due diligence, and notary appointments.
Foreign buyers in Croatia face modest additional paperwork for registration but follow essentially the same timeline as domestic purchasers. EU citizens experience no significant delays.
Spanish processes may extend for non-EU buyers due to pending legislative changes and additional compliance requirements. Current uncertainty around foreign buyer taxes creates potential delays.
Both countries require similar documentation: proof of funds, legal checks, property surveys, and tax clearances. Croatian procedures tend to be more streamlined due to recent legal modernization efforts.
What are the ongoing maintenance costs for a typical property in Croatia compared to Spain?
Croatian property maintenance averages €1,540 annually for a typical apartment, plus monthly utilities ranging €85-€189 and community fees.
Spanish maintenance costs include community charges of €50-100 monthly, utilities averaging €41 monthly, with annual maintenance for a 100m² apartment reaching similar levels to Croatia.
Croatian coastal properties incur higher maintenance due to salt air exposure, requiring more frequent exterior maintenance and window replacement. Mountain properties face winter heating costs.
Spanish properties benefit from more developed maintenance service networks and competitive pricing for repairs and renovations. Labor costs remain generally lower than Northern European standards.
Overall maintenance costs favor Spain slightly due to established service industries and competitive pricing, though the difference rarely exceeds 10-15% of total costs.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Croatia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How easy is it to resell a property in Croatia versus Spain, and what is the typical resale timeframe?
Croatian property liquidity varies significantly by location, with prime coastal areas selling within 6-12 months while rural or non-touristic properties may require 12+ months for sale completion.
Spanish major cities and tourist coastlines maintain strong liquidity with typical resale timeframes of 3-9 months, supported by established agent networks and international buyer demand.
Croatian properties in Split, Dubrovnik, and Istria attract quick sales due to tourism appeal and limited supply. However, inland properties face longer marketing periods and may require price adjustments.
Spanish secondary markets experience oversupply in some regions, affecting sale speeds and pricing power. Popular destinations like Costa del Sol and Balearic Islands maintain faster turnover.
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What are the mortgage options, interest rates, and financing possibilities available for foreigners in both countries?
Croatian banks offer limited mortgage options to foreigners, typically providing 60-70% loan-to-value ratios at interest rates of 4-5.5% as of September 2025.
Spanish banks provide more developed financing for foreigners, including non-residents, with similar 60-70% LTV ratios and interest rates of 3.5-5% for non-resident buyers.
Croatian mortgage access often requires local residency or company structure, limiting options for pure foreign investment. Documentation requirements include proof of income from home country and Croatian tax registration.
Spanish financing infrastructure accommodates international buyers with established procedures for income verification, currency hedging, and cross-border legal compliance. Major international banks operate Spanish subsidiaries.
Spanish mortgage options clearly favor foreign buyers with broader availability, competitive rates, and established processes, while Croatian financing remains restrictive but improving.
How developed is the rental market infrastructure such as property management companies and tenant demand in each place?
Croatian rental market infrastructure is rapidly developing in tourist regions, with growing ecosystems for property management and vacation rentals in coastal areas.
Spanish rental markets feature mature infrastructure with professional property management companies widely available, especially in major cities and Mediterranean coast destinations.
Croatian tenant demand shows strong seasonality in tourist areas but steady growth in Zagreb and other major cities. Holiday rental demand peaks during summer months with significant income potential.
Spanish rental demand remains consistently strong across long-term and holiday markets, supported by large expat populations, established tourism, and diverse economic activity.
Spain offers superior rental infrastructure with established legal frameworks, professional management services, and diverse tenant pools, while Croatia provides high-yield opportunities with developing but limited infrastructure support.
What lifestyle and infrastructure differences—like healthcare, transport, expat communities, and cost of living—impact property ownership in Croatia versus Spain?
1. **Healthcare Systems**: Spain provides world-class healthcare with comprehensive public and private options, while Croatia offers good quality care but with less international accessibility and fewer English-speaking practitioners. 2. **Transportation Networks**: Spain features advanced transport including high-speed rail, frequent international flights, and comprehensive public transit, whereas Croatia has improving but limited transport infrastructure outside major tourist areas. 3. **Expat Communities**: Spanish cities host large, established international expat populations with extensive support networks, while Croatian expat communities are smaller but growing, particularly in coastal regions. 4. **Cost of Living**: Croatian daily expenses run 20-30% lower than Spanish equivalents for dining, groceries, and services, though imported goods cost similar amounts in both countries. 5. **Cultural Integration**: Spain offers extensive cultural amenities, international schools, and multicultural environments, while Croatia provides more intimate, local cultural experiences with fewer international facilities. 6. **Language Barriers**: Spanish language skills transfer globally and local English proficiency is high in tourist areas, while Croatian language learning offers limited international utility though English competency is growing among younger populations. 7. **Business Infrastructure**: Spain maintains sophisticated business and legal environments with extensive international connections, while Croatia offers simpler structures but fewer professional services for complex international arrangements.Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Croatia presents a compelling alternative to Spain for property investors seeking Mediterranean lifestyle at lower costs with better foreign ownership accessibility.
While Spain offers superior infrastructure and established expat amenities, Croatia's growth potential and affordability make it an attractive emerging market for strategic property investment.
Sources
- Valor Real Estate - Cost of Living in Croatia 2025
- E1 Holding - Croatia Real Estate Market Analysis 2025
- Centrarium - Spain Housing Price Growth 2025
- Idealista - Spain Housing and Rental Price Trends
- Idealista - Cheapest Spanish Cities 2025
- Valor Real Estate - Croatia Market Changes 2025
- Marvel Real Estate - Croatia Tax Reforms 2025
- How to Buy in Spain - Real Cost of Spanish Property
- Spain Legal - Property Tax in Spain
- Dahler & Company - Running Costs of Spanish Property