Can foreigners buy property in Croatia?

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Everything you need to know before buying real estate is included in our Croatia Property Pack

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A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Croatia. If you'd like to learn more about us, you can check our presentation page.

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Nikki Grey 🇬🇧

CEO & Director, Europe Properties

Nikki Grey, an expert in European real estate markets, has deep knowledge of Croatia's growing investment potential. As the CEO of Europe Properties, she connects investors with prime opportunities in Croatia's dynamic property sector. From historic coastal towns to modern developments, her expertise ensures seamless transactions for buyers seeking homes or investments in this stunning Mediterranean destination.

Can I legally buy property in Croatia as a foreigner?

Yes, foreigners can legally buy property in Croatia, but your rights depend on your citizenship status.

EU, EEA, and Swiss citizens enjoy the same property ownership rights as Croatian nationals for residential and urban properties. This means you can purchase apartments, houses, and urban land plots without any special restrictions or approvals.

Non-EU citizens can buy property only if their home country has a reciprocity agreement with Croatia. Countries like the United States, United Kingdom, Australia, Japan, Brazil, Argentina, South Korea, Russia, and Israel meet these reciprocity requirements, though some may have specific limitations.

Citizens from countries without reciprocity agreements, such as China and India, cannot directly purchase property as individuals but can acquire real estate through a Croatian company.

It's something we develop in our Croatia property pack.

Which countries' citizens are actually allowed to purchase real estate here without restrictions?

EU, EEA, and Swiss citizens have unrestricted access to Croatian residential real estate as of September 2025.

The EU countries include all 27 member states: Germany, France, Italy, Spain, Netherlands, Belgium, Austria, Poland, Czech Republic, Hungary, Slovenia, Slovakia, Romania, Bulgaria, Croatia, Greece, Portugal, Ireland, Denmark, Sweden, Finland, Estonia, Latvia, Lithuania, Luxembourg, Malta, and Cyprus.

EEA countries add Iceland, Liechtenstein, and Norway to this list, while Switzerland has separate bilateral agreements providing the same rights.

These citizens can buy apartments, houses, and urban land without ministry approval, reciprocity checks, or special permits. The purchase process takes 2-8 weeks from contract signing to full registration.

Citizens from all other countries must meet reciprocity requirements and typically need Ministry of Justice approval, which adds 1-6 months to the buying process.

Do I need special government approval or reciprocity agreements to buy?

EU, EEA, and Swiss citizens do not need any special government approval to buy residential properties in Croatia.

Non-EU citizens from reciprocity countries must obtain Ministry of Justice approval before registering ownership. This approval process typically takes 1-6 months and involves submitting documentation proving the reciprocity relationship between Croatia and your home country.

The reciprocity requirement means Croatia must allow Croatian citizens to buy property in your country under similar conditions. The Ministry of Construction and Spatial Planning maintains an official list of reciprocity countries, which as of September 2025 includes the United States, United Kingdom, Australia, Japan, Brazil, Argentina, South Korea, Russia, Israel, and most European and South American countries.

Citizens from non-reciprocity countries cannot obtain this approval and must establish a Croatian company to purchase property legally.

The approval is property-specific, meaning you need separate approval for each property you wish to purchase.

What types of properties can I buy—apartments, houses, or agricultural land?

The types of properties you can buy depend on your citizenship and the specific property category.

Property Type	EU/EEA/Swiss Citizens	Non-EU (Reciprocity)
Apartments	Full access, no restrictions	Allowed with ministry approval
Houses (residential)	Full access, no restrictions	Allowed with ministry approval
Urban building plots	Full access, no restrictions	Allowed with ministry approval
Agricultural land	Allowed since July 2023	Special approval required
Forest land	Prohibited for all foreigners	Prohibited for all foreigners
Coastal protected zones	Prohibited for all foreigners	Prohibited for all foreigners
National security zones	Prohibited for all foreigners	Prohibited for all foreigners

EU citizens gained the right to purchase agricultural land in July 2023 when Croatia lifted its moratorium. Non-EU citizens can still acquire agricultural land but need special ministry approval beyond the standard reciprocity approval.

Forest land, pasture land, and land in protected coastal areas remain off-limits to all foreign buyers regardless of citizenship.

Am I allowed to buy land near the coast or are there restrictions in those areas?

Foreigners face significant restrictions when buying coastal land in Croatia, regardless of citizenship.

You cannot purchase land within designated maritime domains or protected coastal areas. These zones typically extend several hundred meters inland from the coastline and are defined by local spatial planning documents.

However, you can buy apartments, houses, and urban plots in coastal cities and towns like Split, Dubrovnik, Zadar, and islands such as Hvar, Korčula, and Brač, as long as they're not within the specifically protected coastal zones.

Coastal properties outside protected zones follow the same rules as inland properties: EU/EEA/Swiss citizens have full access, while non-EU citizens need reciprocity and ministry approval.

Before purchasing any coastal property, you must verify with local authorities that the land isn't classified as protected coastal area, maritime domain, or national security zone. Real estate agents and lawyers should check the spatial planning documentation and land registry to confirm eligibility.

Do I have to set up a Croatian company if I want to buy certain types of property?

EU, EEA, and Swiss citizens do not need to set up a Croatian company to buy any accessible property types.

Non-EU citizens from countries without reciprocity agreements must establish a Croatian company to purchase property legally. This includes citizens from China, India, and several other countries that lack bilateral property agreements with Croatia.

Some non-EU buyers from reciprocity countries choose to set up a Croatian company for tax optimization, business purposes, or to access restricted property types more easily. Companies can sometimes navigate certain restrictions more efficiently than individual buyers.

Setting up a Croatian limited liability company (d.o.o.) requires a minimum share capital of 2,500 HRK (approximately €330) and involves registration with the Croatian Chamber of Commerce. The process typically takes 2-4 weeks and costs around €500-1,000 including legal fees.

Company ownership allows access to commercial properties and certain land types that might be restricted for individual foreign buyers, but doesn't override the fundamental prohibitions on forest land or protected coastal zones.

What are the taxes and fees I need to pay when buying, like property transfer tax or VAT?

The main tax you'll pay when buying property in Croatia is either property transfer tax or VAT, depending on the property type.

For resale properties (previously owned), you pay 3% property transfer tax based on the contract price. This applies to most apartments and houses being sold by previous owners.

For new-build properties sold directly by developers, you pay 25% VAT instead of the 3% transfer tax. This significantly impacts the total cost of new developments.

Additional mandatory fees include notary fees ranging from €30-200, court registration fees of €30-200, and land registry fees. If you use a lawyer, expect to pay 0.5-1.5% of the purchase price plus VAT.

Real estate agent commissions range from 2-4% of the purchase price plus VAT, typically paid by the buyer in Croatia. Document translation fees cost around €70 or more if contracts aren't in Croatian.

It's something we develop in our Croatia property pack.

How much should I budget for notary, lawyer, and agency costs in Croatia?

Professional service costs typically add 3-6% to your total property purchase price in Croatia.

1. **Lawyer fees**: 0.5-1.5% of the purchase price plus 25% VAT. Complex transactions involving foreign buyers or restricted properties cost more. 2. **Notary fees**: €30-200 for document certification and contract witnessing, depending on property value and document complexity. 3. **Real estate agent commission**: 2-4% of purchase price plus 25% VAT, usually paid by the buyer. 4. **Court and registration fees**: €30-200 for land registry updates and ownership transfer registration. 5. **Translation services**: €70+ for translating contracts and documents from Croatian to your language.

For a €200,000 property purchase, expect total professional costs of €6,000-12,000. EU citizens typically pay at the lower end due to simpler procedures, while non-EU buyers face higher costs due to additional legal complexity.

Some buyers choose to handle certain steps independently to reduce costs, but legal representation is strongly recommended for foreign buyers navigating Croatian property law.

Are there annual property taxes or other ongoing costs after purchase?

Croatia implemented new property tax reforms in 2025 that significantly changed annual property taxation.

The annual property tax ranges from €0.60 to €8 per square meter, with rates set by individual municipal authorities. However, important exemptions apply: properties used as principal residences and properties rented long-term (more than 10 months per year) are exempt from this tax.

This means if you live in your Croatian property as your main home or rent it out for most of the year, you won't pay annual property tax. Properties used as vacation homes or short-term rentals typically do pay the municipal rate.

Other ongoing costs include utility bills (electricity, water, heating), property insurance, building maintenance fees for apartments, and internet/cable services. These vary significantly by location and property size.

Coastal properties often have higher utility and maintenance costs, while rural properties may have lower municipal taxes but higher maintenance requirements.

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.

Can I get a mortgage from a Croatian bank as a foreigner, and what are the typical conditions?

Croatian banks do offer mortgages to foreign buyers, but conditions vary significantly based on your citizenship and residency status.

EU, EEA, and Swiss citizens receive treatment similar to Croatian nationals. Banks typically offer loan-to-value ratios of 70-80%, meaning you need a 20-30% down payment.

Non-EU citizens face stricter requirements, often needing down payments of up to 50% and must frequently have Croatian residency or employment. Some banks require proof of income in Croatia or substantial assets in Croatian banks.

Standard mortgage conditions include: repayment must be completed before the borrower turns 60, interest rates range from 3-6% annually depending on the bank and risk assessment, and loan terms typically span 15-30 years.

Important restriction: rental income can only be considered for loan qualification if you operate through a Croatian company, not as a private individual.

Major Croatian banks offering foreign mortgages include Zagrebačka banka, Privredna banka Zagreb, and Erste Bank, though each has different criteria for foreign applicants.

How long does the whole buying process usually take from offer to registration?

The timeline for buying property in Croatia depends heavily on your citizenship status and the complexity of the transaction.

EU, EEA, and Swiss citizens typically complete the entire process in 2-8 weeks from contract signing to full ownership registration. This includes due diligence, contract preparation, payment, and land registry updates.

Non-EU citizens from reciprocity countries should expect 3-7 months total due to the mandatory Ministry of Justice approval process. The ministry approval alone takes 1-6 months, after which the standard registration process adds another 2-8 weeks.

Buyers using Croatian companies may register ownership faster since companies can sometimes bypass certain individual approval requirements, though company establishment adds initial setup time.

Factors that can extend timelines include: complex due diligence for older properties, obtaining financing approval, translating documents, and resolving any title or legal issues with the property.

The fastest transactions occur with new-build properties from reputable developers where all documentation is current and standardized.

If I decide to sell later, what taxes will I pay on capital gains as a foreigner?

Croatia applies a 25% capital gains tax on property sales, but the timing of your sale significantly impacts your tax liability.

If you sell within two years of purchase, you pay 25% tax on the net profit (sale price minus purchase price and allowable costs like renovation expenses, real estate agent fees, and legal costs).

If you sell after holding the property for two years or more, you're exempt from capital gains tax entirely, provided the property was used as your main residence during ownership.

For investment properties not used as main residences, the two-year rule still applies: 25% tax if sold within two years, no tax after two years of ownership.

Foreign sellers follow the same tax rules as Croatian residents, with no additional penalties or different rates based on citizenship.

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.

Sources

1. InvestRopa - Foreigners Buy Land Croatia
2. Multilaw - Real Estate Guide Croatia
3. MonoEstate - How to Buy Property in Croatia as a Foreigner
4. Ministry of Construction - Reciprocity Information
5. Veles Club - Property Investment Blog
6. CEE Legal Matters - Real Estate Croatia 2025
7. Croatia Property Advisor - Consent for Property Purchase
8. Luxury Croatia - Property Buying Procedure
9. Adrionika - Agricultural Land Moratorium Lifted
10. Mercury Estate - Taxes and Expenses