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 generally offers more affordable property prices than Italy, with the Croatian national average around €2,050/m² compared to Italy's €2,109/m². However, prime coastal locations in both countries reach similar price levels, making specific location choice crucial for budget-conscious buyers.
Property ownership costs in Croatia have increased following 2025 tax reforms, but transaction fees and maintenance expenses remain lower than Italy's typical rates. Mortgage rates are comparable between both countries, though Italy offers better financing access for foreign buyers seeking investment properties.
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 offers lower average property prices at €2,050/m² versus Italy's €2,109/m², but coastal hotspots in both countries command premium rates above €3,000/m².
Transaction costs, renovation expenses, and daily living costs are generally 20-40% lower in Croatia, while mortgage rates remain comparable between both markets.
| Cost Category | Croatia | Italy |
|---|---|---|
| Average Price per m² | €2,050 | €2,109 |
| Prime Coastal Cities | €2,700-€4,000 | €2,500-€3,500 |
| Annual Property Tax (80m²) | €48-€640 | 0.4-0.8% of cadastral value |
| Transaction Costs | 7-8% total | 5-12% total |
| Mortgage Rates | 3.2-3.7% | ~2.7% |
| Monthly Utilities (80m²) | €85-€189 | €100-€250 |
| Rental Yields | 4-6% (up to 12%) | 3-5% (up to 6%) |
How much does the average price per square meter cost in Croatia compared to Italy?
Croatia's average residential property price stands at €2,050 per square meter as of September 2025, while Italy averages €2,109 per square meter.
In Croatia, prime coastal cities like Split, Opatija, Hvar, and Dubrovnik exceed €2,700 per square meter, with Zagreb averaging around €3,000 per square meter. Rural and less touristy regions range from €1,500 to €1,900 per square meter, while luxury apartments in Dubrovnik can surpass €4,000 per square meter.
Italy shows greater regional variation, with expensive regions like Trentino-Alto Adige reaching €3,482 per square meter and affordable areas like Calabria at €951 per square meter. Prime locations such as Rome and Milan exceed €2,500 to €3,000 per square meter, similar to Croatia's top-tier markets.
The Croatian coastal property market has experienced significant appreciation since EU membership, with many tourist areas seeing prices double since 2015. Italy's market shows more modest nationwide growth, with northern regions and major cities outperforming southern areas.
What are the main differences in property taxes and annual ownership costs between Croatia and Italy?
Croatia implemented significant property tax reforms in 2025, introducing mandatory annual taxes ranging from €0.60 to €8 per square meter depending on location.
For a typical 80-square-meter apartment in Croatia, annual property taxes range from €48 to €640 per year. Annual maintenance costs average around €1,540, while utility bills typically run €85 to €189 monthly. These taxes were historically lower but are now mandatory for all property owners.
Italy employs the IMU tax system, charging 0.4% to 0.8% of the cadastral value, which is often significantly lower than market value. Many primary residence owners receive exemptions unless purchasing luxury properties. Italy also requires the TARI waste disposal tax based on property size and occupancy.
Maintenance costs and utilities in Italy generally exceed Croatian levels, particularly in major cities like Rome and Milan, though regional variations exist. The total annual ownership burden in Italy can be higher due to accumulated municipal taxes and higher utility rates.
How do transaction costs compare between Croatia and Italy?
| Cost Component | Croatia | Italy |
|---|---|---|
| Agent Commission | 3% + VAT | 3% (often split buyer/seller) |
| Legal Fees | 1-1.5% + VAT | Variable (often included in notary) |
| Notary/Court Fees | ~€200 | €1,500-€3,000 |
| Transfer Tax | 3% (unless new/VAT property) | 2% (residents, main home) / 9% (second home, non-residents) |
| Total Transaction Costs | 7-8% | 5-12% |
What are the typical mortgage rates and financing options in Croatia versus Italy?
Croatia's average mortgage rates range from 3.2% to 3.7% as of September 2025, while Italy offers more competitive rates at approximately 2.7%.
Croatian banks maintain restrictive lending policies for foreigners, particularly non-residents, with terms heavily dependent on individual bank policies. Financing access can be challenging for international buyers seeking investment properties in Croatia's prime coastal markets.
Italy provides better financing accessibility for non-residents, with longer fixation periods and more favorable terms for qualified borrowers. Prime borrowers in Italy may achieve slightly lower rates, especially for extended loan periods.
It's something we develop in our Croatia property pack.
The mortgage approval process in Croatia typically involves more stringent documentation requirements for foreign buyers compared to Italy's more streamlined international lending procedures.
How do utility bills and monthly maintenance costs differ between similar properties?
Croatian utility bills for an average-sized apartment range from €85 to €189 monthly, with annual maintenance costs averaging €1,540 for apartment buildings.
Italian utility costs typically exceed Croatian levels, particularly for heating, air conditioning, and waste management services. Major cities like Rome and Milan show elevated condominium and maintenance fees, while rural areas can be more price-competitive with Croatia.
Seasonal variations significantly impact utility costs in both countries, with Croatia's coastal properties experiencing higher summer cooling costs and Italy's northern regions facing substantial winter heating expenses.
Building age and efficiency standards influence costs in both markets, with newer constructions in Croatia often featuring better insulation and energy efficiency compared to Italy's older building stock in historic city centers.
Don't lose money on your property in Croatia
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What are the differences in short-term rental yields and occupancy rates?
Croatia's coastal cities deliver gross rental yields of 4% to 6%, with prime locations in Dubrovnik, Split, and Istria achieving 10% to 12% during peak seasons.
Croatian rental properties experience high occupancy rates during summer months but very low winter occupancy, creating seasonal income volatility. The Adriatic coast's tourism-dependent market shows strong performance from May through September.
Italy's established tourist markets typically generate 3% to 5% gross yields, with high-traffic destinations like Rome, Florence, and Milan reaching 6% for professionally managed properties. Italian markets benefit from more consistent year-round occupancy due to business travel and cultural tourism.
Regulatory environments differ significantly, with Italy implementing stricter short-term rental regulations in major cities, while Croatia maintains more flexible policies for tourist accommodations. This regulatory landscape affects both profitability and operational complexity for investors.
How much more expensive is renovation and furnishing in Italy versus Croatia?
Italy typically costs 30% to 60% more than Croatia for renovation projects, particularly in northern regions and historic preservation zones.
Croatian renovation costs remain competitive except in prime Dubrovnik and Adriatic coastal areas, where premium materials and skilled labor command higher prices. The country offers greater price competition among contractors outside major tourist hotspots.
Italian renovation projects face more complex bureaucratic requirements, especially in historic city centers where preservation regulations increase both time and costs. Permit processes and architectural review requirements add substantial overhead to Italian projects.
Material costs in Italy reflect higher transportation expenses and stricter quality standards, while Croatia benefits from lower labor costs and simplified regulatory procedures for most residential improvements.
How do residency and foreign ownership rules affect buying costs?
Croatia allows EU and EEA citizens to purchase property freely, while non-EU buyers may need reciprocity agreements or special approval for certain property types.
Croatian restrictions primarily apply to agricultural or protected coastal properties, but most residential apartments and houses remain accessible to international buyers. Property purchase does not automatically confer residency rights.
Italy permits all nationalities to buy property without ownership restrictions, making the acquisition process more straightforward for international investors. However, property purchase alone does not grant residency status.
Both countries require separate residency applications based on specific criteria rather than property investment thresholds, though Italy's Golden Visa program offers investment-based residency options through other channels.
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.
What are the main regional price differences within each country?
Croatia's coastal cities command the highest prices, with Split, Dubrovnik, Hvar, and Istria ranging from €2,500 to €5,000 per square meter.
| Region | Croatia Price/m² | Italy Price/m² |
|---|---|---|
| Prime Coastal/Northern Cities | €2,500-€5,000 | €2,500-€3,500 |
| Capital/Major Cities | €3,000 (Zagreb) | €2,500 (Rome/Milan) |
| Rural/Inland Areas | €1,500-€1,900 | €950-€1,200 |
| Tourist Hotspots | €3,000-€4,000+ | €2,000-€3,000 |
| Affordable Regions | €1,200-€1,500 | €800-€1,000 |
How much do property insurance premiums differ between Croatia and Italy?
Croatian property insurance premiums remain relatively affordable, with typical annual costs ranging from €100 to €200 for standard residential properties.
Italian insurance costs typically range from €150 to €350 annually, reflecting higher overall price levels and increased risk assessments in certain regions. Earthquake-prone areas and major cities command premium rates due to elevated risk profiles.
Coverage options in both countries include standard property damage, theft protection, and liability insurance, with Italian policies often providing more comprehensive coverage packages. Natural disaster coverage varies significantly based on regional risk assessments.
It's something we develop in our Croatia property pack.
What are the property appreciation trends over the past 10 years?
Croatia experienced exceptional property appreciation in tourist cities, with Dubrovnik, Split, and Istria seeing prices nearly double since 2015 following EU membership and tourism growth.
Italian property markets showed modest nationwide growth of 2% to 5% annually over the past three years, with many regions only recently regaining pre-2010 financial crisis levels. Northern regions and major metropolitan areas significantly outperformed southern Italy.
Croatia's coastal property surge was driven by limited supply, EU membership benefits, and explosive tourism growth, creating substantial capital gains for early investors in prime locations.
Italy's recovery has been more gradual and regionally diverse, with established markets like Milan and Rome showing steady appreciation while southern regions remain more affordable but with limited growth potential.
How does the cost of living compare for daily expenses around properties?
Croatia generally offers lower daily living costs than Italy, particularly for groceries, restaurant dining, and public transportation outside major tourist centers.
1. **Grocery costs** in Croatia average 20-30% less than Italian supermarket prices 2. **Restaurant meals** cost significantly less in Croatian cities compared to Italian equivalents 3. **Public transportation** remains more affordable in Croatian urban areas 4. **Healthcare services** show competitive pricing in Croatia's private sector 5. **Entertainment and cultural activities** typically cost less in Croatian citiesItalian daily expenses vary dramatically by region, with northern cities like Milan and Rome showing costs comparable to other major European capitals, while southern Italy can be more price-competitive with Croatia.
Tourist areas in both countries experience seasonal price inflation, but Croatia's smaller cities maintain more reasonable year-round pricing for daily necessities compared to Italy's established tourism infrastructure.
It's something we develop in our Croatia property pack.
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 offers compelling value for property buyers seeking Mediterranean coastal access at lower entry costs than Italy, with transaction fees and renovation expenses typically 20-40% less expensive.
While Italy provides better mortgage accessibility and more stable rental yields, Croatia's recent EU membership benefits and tourism growth create stronger appreciation potential for investors willing to navigate seasonal occupancy patterns.
Sources
- E1 Holding - Croatia Real Estate Prices 2025
- Croatia Real Estate Insight - Market Guide 2025
- Immobiliare.it - Italian Real Estate Market
- Centrarium - Italian Property Prices 2025
- Marvel Real Estate - Croatia Tax Reforms 2025
- Mercury Estate - Croatia Property Taxes and Expenses
- Italy House Hunting - Annual Property Costs
- Giambrone Law - Italian Property Tax Guide
- Breeza Abroad - Croatia Property Buying Costs
- Rimac Real Estate - Croatia Additional Costs
-Is Dubrovnik Property Worth the Price?
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 generally offers more affordable property prices than Italy, with the Croatian national average around €2,050/m² compared to Italy's €2,109/m². However, prime coastal locations in both countries reach similar price levels, making specific location choice crucial for budget-conscious buyers.
Property ownership costs in Croatia have increased following 2025 tax reforms, but transaction fees and maintenance expenses remain lower than Italy's typical rates. Mortgage rates are comparable between both countries, though Italy offers better financing access for foreign buyers seeking investment properties.
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 offers lower average property prices at €2,050/m² versus Italy's €2,109/m², but coastal hotspots in both countries command premium rates above €3,000/m².
Transaction costs, renovation expenses, and daily living costs are generally 20-40% lower in Croatia, while mortgage rates remain comparable between both markets.
| Cost Category | Croatia | Italy |
|---|---|---|
| Average Price per m² | €2,050 | €2,109 |
| Prime Coastal Cities | €2,700-€4,000 | €2,500-€3,500 |
| Annual Property Tax (80m²) | €48-€640 | 0.4-0.8% of cadastral value |
| Transaction Costs | 7-8% total | 5-12% total |
| Mortgage Rates | 3.2-3.7% | ~2.7% |
| Monthly Utilities (80m²) | €85-€189 | €100-€250 |
| Rental Yields | 4-6% (up to 12%) | 3-5% (up to 6%) |
How much does the average price per square meter cost in Croatia compared to Italy?
Croatia's average residential property price stands at €2,050 per square meter as of September 2025, while Italy averages €2,109 per square meter.
In Croatia, prime coastal cities like Split, Opatija, Hvar, and Dubrovnik exceed €2,700 per square meter, with Zagreb averaging around €3,000 per square meter. Rural and less touristy regions range from €1,500 to €1,900 per square meter, while luxury apartments in Dubrovnik can surpass €4,000 per square meter.
Italy shows greater regional variation, with expensive regions like Trentino-Alto Adige reaching €3,482 per square meter and affordable areas like Calabria at €951 per square meter. Prime locations such as Rome and Milan exceed €2,500 to €3,000 per square meter, similar to Croatia's top-tier markets.
The Croatian coastal property market has experienced significant appreciation since EU membership, with many tourist areas seeing prices double since 2015. Italy's market shows more modest nationwide growth, with northern regions and major cities outperforming southern areas.
What are the main differences in property taxes and annual ownership costs between Croatia and Italy?
Croatia implemented significant property tax reforms in 2025, introducing mandatory annual taxes ranging from €0.60 to €8 per square meter depending on location.
For a typical 80-square-meter apartment in Croatia, annual property taxes range from €48 to €640 per year. Annual maintenance costs average around €1,540, while utility bills typically run €85 to €189 monthly. These taxes were historically lower but are now mandatory for all property owners.
Italy employs the IMU tax system, charging 0.4% to 0.8% of the cadastral value, which is often significantly lower than market value. Many primary residence owners receive exemptions unless purchasing luxury properties. Italy also requires the TARI waste disposal tax based on property size and occupancy.
Maintenance costs and utilities in Italy generally exceed Croatian levels, particularly in major cities like Rome and Milan, though regional variations exist. The total annual ownership burden in Italy can be higher due to accumulated municipal taxes and higher utility rates.
How do transaction costs compare between Croatia and Italy?
| Cost Component | Croatia | Italy |
|---|---|---|
| Agent Commission | 3% + VAT | 3% (often split buyer/seller) |
| Legal Fees | 1-1.5% + VAT | Variable (often included in notary) |
| Notary/Court Fees | ~€200 | €1,500-€3,000 |
| Transfer Tax | 3% (unless new/VAT property) | 2% (residents, main home) / 9% (second home, non-residents) |
| Total Transaction Costs | 7-8% | 5-12% |
What are the typical mortgage rates and financing options in Croatia versus Italy?
Croatia's average mortgage rates range from 3.2% to 3.7% as of September 2025, while Italy offers more competitive rates at approximately 2.7%.
Croatian banks maintain restrictive lending policies for foreigners, particularly non-residents, with terms heavily dependent on individual bank policies. Financing access can be challenging for international buyers seeking investment properties in Croatia's prime coastal markets.
Italy provides better financing accessibility for non-residents, with longer fixation periods and more favorable terms for qualified borrowers. Prime borrowers in Italy may achieve slightly lower rates, especially for extended loan periods.
It's something we develop in our Croatia property pack.
The mortgage approval process in Croatia typically involves more stringent documentation requirements for foreign buyers compared to Italy's more streamlined international lending procedures.
How do utility bills and monthly maintenance costs differ between similar properties?
Croatian utility bills for an average-sized apartment range from €85 to €189 monthly, with annual maintenance costs averaging €1,540 for apartment buildings.
Italian utility costs typically exceed Croatian levels, particularly for heating, air conditioning, and waste management services. Major cities like Rome and Milan show elevated condominium and maintenance fees, while rural areas can be more price-competitive with Croatia.
Seasonal variations significantly impact utility costs in both countries, with Croatia's coastal properties experiencing higher summer cooling costs and Italy's northern regions facing substantial winter heating expenses.
Building age and efficiency standards influence costs in both markets, with newer constructions in Croatia often featuring better insulation and energy efficiency compared to Italy's older building stock in historic city centers.
Don't lose money on your property in Croatia
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What are the differences in short-term rental yields and occupancy rates?
Croatia's coastal cities deliver gross rental yields of 4% to 6%, with prime locations in Dubrovnik, Split, and Istria achieving 10% to 12% during peak seasons.
Croatian rental properties experience high occupancy rates during summer months but very low winter occupancy, creating seasonal income volatility. The Adriatic coast's tourism-dependent market shows strong performance from May through September.
Italy's established tourist markets typically generate 3% to 5% gross yields, with high-traffic destinations like Rome, Florence, and Milan reaching 6% for professionally managed properties. Italian markets benefit from more consistent year-round occupancy due to business travel and cultural tourism.
Regulatory environments differ significantly, with Italy implementing stricter short-term rental regulations in major cities, while Croatia maintains more flexible policies for tourist accommodations. This regulatory landscape affects both profitability and operational complexity for investors.
How much more expensive is renovation and furnishing in Italy versus Croatia?
Italy typically costs 30% to 60% more than Croatia for renovation projects, particularly in northern regions and historic preservation zones.
Croatian renovation costs remain competitive except in prime Dubrovnik and Adriatic coastal areas, where premium materials and skilled labor command higher prices. The country offers greater price competition among contractors outside major tourist hotspots.
Italian renovation projects face more complex bureaucratic requirements, especially in historic city centers where preservation regulations increase both time and costs. Permit processes and architectural review requirements add substantial overhead to Italian projects.
Material costs in Italy reflect higher transportation expenses and stricter quality standards, while Croatia benefits from lower labor costs and simplified regulatory procedures for most residential improvements.
How do residency and foreign ownership rules affect buying costs?
Croatia allows EU and EEA citizens to purchase property freely, while non-EU buyers may need reciprocity agreements or special approval for certain property types.
Croatian restrictions primarily apply to agricultural or protected coastal properties, but most residential apartments and houses remain accessible to international buyers. Property purchase does not automatically confer residency rights.
Italy permits all nationalities to buy property without ownership restrictions, making the acquisition process more straightforward for international investors. However, property purchase alone does not grant residency status.
Both countries require separate residency applications based on specific criteria rather than property investment thresholds, though Italy's Golden Visa program offers investment-based residency options through other channels.
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.
What are the main regional price differences within each country?
Croatia's coastal cities command the highest prices, with Split, Dubrovnik, Hvar, and Istria ranging from €2,500 to €5,000 per square meter.
| Region | Croatia Price/m² | Italy Price/m² |
|---|---|---|
| Prime Coastal/Northern Cities | €2,500-€5,000 | €2,500-€3,500 |
| Capital/Major Cities | €3,000 (Zagreb) | €2,500 (Rome/Milan) |
| Rural/Inland Areas | €1,500-€1,900 | €950-€1,200 |
| Tourist Hotspots | €3,000-€4,000+ | €2,000-€3,000 |
| Affordable Regions | €1,200-€1,500 | €800-€1,000 |
How much do property insurance premiums differ between Croatia and Italy?
Croatian property insurance premiums remain relatively affordable, with typical annual costs ranging from €100 to €200 for standard residential properties.
Italian insurance costs typically range from €150 to €350 annually, reflecting higher overall price levels and increased risk assessments in certain regions. Earthquake-prone areas and major cities command premium rates due to elevated risk profiles.
Coverage options in both countries include standard property damage, theft protection, and liability insurance, with Italian policies often providing more comprehensive coverage packages. Natural disaster coverage varies significantly based on regional risk assessments.
It's something we develop in our Croatia property pack.
What are the property appreciation trends over the past 10 years?
Croatia experienced exceptional property appreciation in tourist cities, with Dubrovnik, Split, and Istria seeing prices nearly double since 2015 following EU membership and tourism growth.
Italian property markets showed modest nationwide growth of 2% to 5% annually over the past three years, with many regions only recently regaining pre-2010 financial crisis levels. Northern regions and major metropolitan areas significantly outperformed southern Italy.
Croatia's coastal property surge was driven by limited supply, EU membership benefits, and explosive tourism growth, creating substantial capital gains for early investors in prime locations.
Italy's recovery has been more gradual and regionally diverse, with established markets like Milan and Rome showing steady appreciation while southern regions remain more affordable but with limited growth potential.
How does the cost of living compare for daily expenses around properties?
Croatia generally offers lower daily living costs than Italy, particularly for groceries, restaurant dining, and public transportation outside major tourist centers.
1. **Grocery costs** in Croatia average 20-30% less than Italian supermarket prices 2. **Restaurant meals** cost significantly less in Croatian cities compared to Italian equivalents 3. **Public transportation** remains more affordable in Croatian urban areas 4. **Healthcare services** show competitive pricing in Croatia's private sector 5. **Entertainment and cultural activities** typically cost less in Croatian citiesItalian daily expenses vary dramatically by region, with northern cities like Milan and Rome showing costs comparable to other major European capitals, while southern Italy can be more price-competitive with Croatia.
Tourist areas in both countries experience seasonal price inflation, but Croatia's smaller cities maintain more reasonable year-round pricing for daily necessities compared to Italy's established tourism infrastructure.
It's something we develop in our Croatia property pack.
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 offers compelling value for property buyers seeking Mediterranean coastal access at lower entry costs than Italy, with transaction fees and renovation expenses typically 20-40% less expensive.
While Italy provides better mortgage accessibility and more stable rental yields, Croatia's recent EU membership benefits and tourism growth create stronger appreciation potential for investors willing to navigate seasonal occupancy patterns.
Sources
- E1 Holding - Croatia Real Estate Prices 2025
- Croatia Real Estate Insight - Market Guide 2025
- Immobiliare.it - Italian Real Estate Market
- Centrarium - Italian Property Prices 2025
- Marvel Real Estate - Croatia Tax Reforms 2025
- Mercury Estate - Croatia Property Taxes and Expenses
- Italy House Hunting - Annual Property Costs
- Giambrone Law - Italian Property Tax Guide
- Breeza Abroad - Croatia Property Buying Costs
- Rimac Real Estate - Croatia Additional Costs