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
Yes, US citizens can legally buy residential property in Croatia in 2026, but the process requires a few extra steps compared to EU buyers, including getting approval from the Croatian Ministry of Justice.
Croatia recognizes reciprocity with the United States, which means Americans have the legal right to purchase homes, apartments, and most types of residential real estate in the country.
We constantly update this blog post with the latest information on Croatian property ownership rules for foreigners, so bookmark it for future reference.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Croatia.
Can a US citizen legally buy residential property in Croatia right now?
Can I buy a home in Croatia as a US citizen in 2026?
As of early 2026, US citizens can legally purchase residential property in Croatia, but they must go through a reciprocity and ministerial consent process that adds a few weeks to a few months to the standard buying timeline.
The standard buying process for an American involves finding a property, signing a preliminary contract with the seller, applying for consent from the Croatian Ministry of Justice, waiting for approval (typically 30 to 60 days), and then completing the final purchase and registration in the land registry.
This process is straightforward once you understand it, and approval rates for US citizens are high because Croatia officially recognizes reciprocity with the United States, meaning Croatians can buy property in America and vice versa.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Croatia.
Are there many Americans buying property and living in Croatia in 2026?
As of early 2026, Americans represent a growing but still modest share of foreign property buyers in Croatia, with the Croatian Bureau of Statistics showing that US tourists accounted for about 4.2% of all foreign tourist nights in April 2025, which serves as a useful proxy for American interest in the country.
The neighborhoods and areas in Croatia with the highest concentration of American expats and property owners include Split, Dubrovnik, the Istrian peninsula (especially Rovinj and Pula), and the capital Zagreb, where the American International School and strong expat networks attract families and remote workers.
The top three reasons Americans are choosing to buy property and relocate to Croatia are the lower cost of living compared to the US, the stunning Adriatic coastline and Mediterranean lifestyle, and Croatia's digital nomad visa that allows remote workers to live in the country for up to one year without paying Croatian income tax.
The American expat community in Croatia is growing, driven by increased awareness of the digital nomad visa, remote work flexibility since 2020, and Croatia's reputation as a safe and affordable European destination with excellent healthcare and quality of life.
Do foreigners have the same buying rights as locals in Croatia?
EU and EEA citizens have nearly the same property buying rights as Croatian nationals and can purchase apartments, houses, and urban land without special approvals, while Americans and other non-EU citizens must obtain Ministry of Justice consent based on the reciprocity principle, which adds bureaucratic steps but does not typically result in rejection for US buyers.
The main property types or locations in Croatia that are off-limits or restricted for foreign buyers, including Americans, are agricultural land (which foreigners cannot purchase as individuals) and certain protected zones like the maritime domain along the coast, national park boundaries, and small undeveloped islands where the Croatian state holds pre-emption rights.
We cover all these things in length in our pack about the property market in Croatia.
Can I buy property in Croatia without a residence permit?
Yes, you can buy property in Croatia without a residence permit because Croatian law does not require foreign buyers to live in the country or hold any visa or residency status to purchase real estate.
The process for buying property in Croatia while living abroad as a non-resident involves appointing a local lawyer with power of attorney, obtaining your Croatian personal identification number (OIB) remotely through a Croatian embassy or consulate, and having your lawyer handle the Ministry of Justice consent application and land registry procedures on your behalf.
Buying a home in Croatia does not automatically grant you any visa or residency rights, but property ownership can help support a temporary stay application if you later want to spend extended time in the country, as it demonstrates ties to Croatia and provides a registered address.
The main practical challenge non-resident buyers face when completing a property purchase remotely in Croatia is coordinating time zones and document authentication, since some steps may require notarized signatures, apostilles, or certified translations that need to be handled through your home country's Croatian consulate.
Can US citizens own land in Croatia?
US citizens can own land in Croatia for residential purposes, meaning if you buy a house, you also own the underlying land parcel, and if you buy an apartment, you own a proportional share of the building's common land through the condominium structure.
Croatia does not use the freehold versus leasehold distinction common in some other countries; instead, the main legal divider is whether you are an EU citizen or a non-EU citizen requiring Ministry consent, and whether the land falls into a special category like agricultural land.
The specific geographic zones or land categories in Croatia where foreign land ownership is restricted or prohibited include agricultural land (foreigners cannot buy this as individuals), protected coastal maritime zones (which are public domain), national park land, and certain small uninhabited islands where the state has pre-emption rights.
Please note that we have a dedicated blog article about the land buying process in Croatia here.
What documents will I need to buy in Croatia?
The essential documents a US citizen needs to purchase property in Croatia include a valid passport, a Croatian OIB (personal identification number), the signed purchase contract, seller's proof of title via a land registry extract, proof of funds (bank statements or wire transfer confirmations), and, if using a mortgage, income documentation and property appraisal reports.
Yes, a local tax identification number called the OIB is required for foreign buyers in Croatia before you can complete a property purchase or register ownership in the land registry, and you can obtain one by applying through the Croatian Tax Administration office in person or through a Croatian embassy or consulate abroad.
A local Croatian bank account is not legally mandatory for completing a property purchase in Croatia, but it is highly recommended because it simplifies paying the purchase price, handling closing costs, setting up utility payments, and managing ongoing property taxes.
Foreign buyers in Croatia are typically required to provide proof of funds showing you have the money available to complete the purchase, and while a local Croatian address is not strictly required to buy, you will need to provide a correspondence address for receiving tax decisions and official notices.
We have a whole section dedicated to all the documents you need in our Croatia property pack.
Can a foreign-owned company buy property in Croatia?
Yes, foreign-owned companies can purchase residential property in Croatia, and a Croatian-registered company owned by a foreigner can often bypass the Ministry of Justice consent process since the company itself is a Croatian legal entity.
Some Americans do use Croatian company structures (similar to a d.o.o., which is the Croatian equivalent of an LLC) to hold property in Croatia, particularly when they plan to rent the property to tourists or want to simplify co-ownership among multiple investors.
Owning property through a company structure in Croatia does not automatically lower taxes and often increases administrative costs because you must maintain corporate accounting, file annual reports, and potentially deal with corporate tax, VAT on rentals, and dividend taxation when extracting profits.
The main drawback of using company ownership for residential property in Croatia is the added complexity and ongoing costs of maintaining a company, including accounting fees, annual filings, and the need to understand Croatian corporate law, which for a simple personal-use home purchase usually outweighs any benefits.
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What taxes and fees will I pay in Croatia in 2026?
What are buyer taxes in Croatia in 2026?
As of early 2026, the main buyer tax on a property purchase in Croatia is either the 3% real estate transfer tax on the market value for resale properties or 25% VAT for new-build purchases from developers (usually included in the listed price), so on a 200,000 euro apartment (about 215,000 USD), you would pay around 6,000 euros (about 6,450 USD) in transfer tax if it is a resale property.
The individual tax components that make up the total buyer tax burden in Croatia are the 3% real estate transfer tax for resale properties (paid to the Tax Administration within 30 days of signing the contract) or the 25% VAT for new constructions (typically embedded in the developer's sale price), and there are no additional stamp duties or purchase taxes beyond these two.
Buyer tax rates in Croatia do not differ for foreigners versus locals, and there is no special surcharge for Americans or other non-EU buyers; however, the new annual property tax introduced in 2025 does distinguish between owner-occupied primary residences (which can be exempt) and other properties including second homes and investment properties.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Croatia.
What are other closing costs in Croatia in 2026?
As of early 2026, the total closing costs excluding taxes that a buyer should budget for in Croatia typically range from 2% to 4% of the purchase price, so on a 200,000 euro property (about 215,000 USD), expect to pay between 4,000 and 8,000 euros (about 4,300 to 8,600 USD) for notary, legal, registration, and potential agent fees.
The main closing cost categories in Croatia include notary fees for contract certification (typically 200 to 500 euros, about 215 to 540 USD), legal fees for a lawyer to handle due diligence and the purchase process (typically 1,000 to 3,000 euros, about 1,075 to 3,225 USD depending on complexity), land registry registration fees (around 30 to 100 euros, about 32 to 108 USD), and real estate agent commissions (typically 2% to 4% plus VAT, though often paid by the seller).
The closing costs that are negotiable or optional for buyers in Croatia include the real estate agent commission (which in some transactions is paid entirely by the seller), optional legal representation (though highly recommended for foreigners), and certain translation or document apostille services that you may handle yourself.
The single closing cost item that tends to surprise foreign buyers the most in Croatia is the need for certified translations and document authentication, especially for Americans who must get documents apostilled and translated into Croatian, which can add several hundred euros and extra time to the process.
Are there hidden fees foreigners miss in Croatia right now?
The estimated total amount of commonly overlooked fees foreign buyers encounter in Croatia typically adds up to between 500 and 2,000 euros (about 540 to 2,150 USD), depending on the complexity of the transaction and how much document translation, legal cleanup, or bank compliance work is required.
The top three hidden or unexpected fees that foreign buyers most often fail to budget for in Croatia are certified translation costs for documents (100 to 300 euros, about 108 to 323 USD), apostille and notarization fees for foreign documents (100 to 200 euros, about 108 to 215 USD), and land registry or title cleanup costs if the seller's paperwork has inconsistencies (300 to 1,000 euros, about 323 to 1,075 USD in legal fees to resolve).
The ongoing annual costs or fees foreign property owners often underestimate after purchase in Croatia include the new annual property tax (ranging from 0.60 to 8 euros per square meter per year depending on your municipality, so a 100 square meter apartment could cost between 60 and 800 euros annually, about 65 to 860 USD), building maintenance fees for apartments, utility connection or transfer fees, and insurance premiums.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Croatia.
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 as a US citizen in Croatia in 2026?
Do banks lend to US citizens in Croatia in 2026?
As of early 2026, Croatian banks do lend to US citizens for property purchases, but mortgage availability for non-resident Americans is more limited than for EU citizens or Croatian residents, and you will typically need a stronger financial profile and a larger down payment.
US citizens generally receive equal or slightly less favorable treatment compared to other non-EU foreign nationals when applying for mortgages in Croatia, as banks primarily distinguish between EU residents, non-EU residents, and non-residents rather than singling out Americans specifically.
The main reason some banks in Croatia are hesitant to lend to American borrowers specifically is the complexity of US tax reporting requirements (including FATCA compliance), which creates extra paperwork and potential liability concerns for Croatian financial institutions.
The typical approval rate or success likelihood for US citizens applying for property loans in Croatia is lower than for local residents, but Americans with strong income documentation, significant down payments (30% to 50%), and a clear financial profile can secure financing from major banks like Zagrebacka banka, PBZ, or Erste Bank.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Croatia.
What down payment do American people need in Croatia in 2026?
As of early 2026, the minimum down payment for US citizens to obtain a mortgage in Croatia is typically 30% to 50% of the purchase price, so for a 200,000 euro property (about 215,000 USD), you should plan to bring at least 60,000 to 100,000 euros (about 64,500 to 107,500 USD) as your own contribution.
The typical down payment range for foreign buyers in Croatia goes from 30% at the low end for strong applicants with Croatian residency or verifiable euro income, up to 50% or more for non-resident Americans who earn income in US dollars and have no existing relationship with Croatian banks.
Yes, a larger down payment typically improves mortgage terms and interest rates for US citizens in Croatia because banks view higher owner equity as lower risk, which can translate into a slightly better interest rate, more favorable repayment terms, and faster approval.
You can also read our latest update about mortgage and interest rates in Croatia.
What interest rates do US citizens get in Croatia in 2026?
As of early 2026, the typical mortgage interest rate range for US citizens in Croatia is approximately 3.5% to 5%, which is higher than the roughly 3% to 4% rates available to Croatian residents and EU citizens with local income.
Interest rates for foreign buyers in Croatia are generally 0.5% to 1.5% higher than rates offered to local residents because banks add a risk premium for non-resident borrowers who earn income abroad and may be harder to pursue in case of default.
Fixed-rate mortgages have become more common for foreign buyers in Croatia in recent years, with many major banks now offering fixed rates for the entire loan term or for an initial period of 5 to 10 years, and typical loan terms range from 15 to 30 years.
The single factor that has the biggest impact on the interest rate a US citizen will be offered in Croatia is whether you have Croatian residency or verifiable income in euros, as banks offer significantly better rates to borrowers they can easily underwrite using European income verification standards.
Can I use US income to qualify in Croatia right now?
Yes, Croatian banks can accept US-sourced income for mortgage qualification, but the acceptance level varies by bank and typically requires more extensive documentation and sometimes the engagement of a Croatian co-borrower or additional collateral.
The documentation of US income that banks in Croatia typically require from American applicants includes two to three years of US tax returns, recent pay stubs or employer verification letters, bank statements showing regular deposits, and proof of any existing debts or financial commitments in the US.
If standard US documentation is insufficient, some Croatian banks accept alternative income verification methods such as CPA-certified income statements, business financial statements for self-employed applicants, or proof of substantial liquid assets that demonstrate your ability to service the loan without relying solely on employment income.
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How do US taxes interact with owning property in Croatia?
Do I have to declare the property to the IRS from Croatia?
The estimated IRS reporting requirement for US citizens who own property in Croatia is that the property itself is generally not reported as a "specified foreign financial asset" on Form 8938 or other IRS forms simply because you own it, but any related rental income, capital gains upon sale, or foreign bank accounts used for the property do trigger reporting obligations.
Simply owning property in Croatia does not by itself trigger IRS reporting, but reporting is required when you earn rental income from the property (reported on Schedule E), sell the property for a gain (reported as a capital gain), or hold more than 10,000 USD in foreign bank accounts used for property-related transactions (reported on FBAR and potentially Form 8938).
Will I pay tax twice in the US and Croatia in 2026?
As of early 2026, there is a risk of double taxation for US citizens owning property in Croatia because although the US and Croatia signed a comprehensive tax treaty in December 2022, the treaty has not yet been ratified by the US Senate and is therefore not in force.
The US-Croatia tax treaty was signed in December 2022 and is designed to prevent double taxation and allocate taxing rights between the two countries, but until it is ratified by both the US Senate and the Croatian Parliament, American property owners cannot rely on its protections and must use domestic tax mechanisms instead.
The Foreign Tax Credit allows US citizens to offset taxes paid in Croatia against their US tax liability by claiming a credit for Croatian income taxes paid on rental income or capital gains, which helps reduce but may not completely eliminate double taxation depending on your specific tax situation.
Property taxes paid in Croatia may or may not be deductible on US federal tax returns depending on whether the property is a personal residence or a rental investment; for rental properties, Croatian property taxes are generally deductible as a business expense, while for personal residences, the deduction is limited by the SALT (state and local tax) cap of 10,000 USD.
Do I need FATCA reporting when buying in Croatia?
The estimated FATCA reporting requirement for US citizens purchasing property in Croatia is that the property itself is not typically a reportable asset, but any Croatian bank accounts, investment accounts, or foreign entities used in connection with the purchase likely are reportable if they exceed the relevant thresholds.
The specific FATCA thresholds that trigger Form 8938 reporting for foreign financial assets related to a Croatia purchase are 50,000 USD at year-end (or 75,000 USD at any point during the year) for taxpayers living in the US, and 200,000 USD at year-end (or 300,000 USD during the year) for taxpayers living abroad.
FATCA reporting via Form 8938 differs from FBAR (FinCEN Form 114) in that FBAR has a lower threshold of 10,000 USD aggregate value across all foreign accounts at any point during the year, is filed separately to FinCEN (not with your tax return), and focuses specifically on bank and financial accounts rather than the broader category of specified foreign financial assets covered by Form 8938.
Consulting a US CPA before buying property in Croatia is strongly recommended, especially if you plan to rent the property, open Croatian bank accounts, buy through a company structure, or expect to sell within a few years, and specific questions to ask include how to structure the purchase for tax efficiency, what reporting obligations you will have, and how to use the Foreign Tax Credit effectively.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Croatia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Croatia, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source name | Why it's authoritative | How we have used it |
|---|---|---|
| Gov.hr (Croatian Government) | Official Croatian government portal explaining foreign buyer rules in plain language. | We used it to anchor the "who can buy" rules for EU versus non-EU citizens. We also referenced it for the general need for ministerial consent and exempted areas like agricultural land. |
| Ministry of Justice (MPUDT) | The ministry that formally tracks reciprocity status for non-EU buyers. | We used it to confirm that Croatia recognizes reciprocity with the United States. We also used it to explain what reciprocity practically means for American buyers. |
| Gov.hr Real Estate Transfer Tax | Official government explainer for the core buyer tax in Croatia. | We used it to state the 3% transfer tax rule for resale properties. We also used it to clearly separate transfer tax from VAT on new builds. |
| Croatian Tax Administration (Property Tax) | The tax authority describing the annual property tax currently in force. | We used it to confirm the property tax started January 1, 2025 and the legal annual range of 0.60 to 8 euros per square meter. We also explained how municipalities set the exact rate. |
| Croatian Tax Administration (Foreign Person) | Official tax authority guidance for non-citizens on procedures. | We used it to explain that foreigners need an OIB (Croatian personal ID number) for official procedures. We kept the documents checklist grounded in official language. |
| Croatian National Bank (HNB) | The central bank publishing official market-wide interest rate statistics. | We used it to estimate early 2026 mortgage pricing using the latest official data point of 3.03% average for housing loans in October 2025. We added realistic bank spreads for non-residents. |
| Gov.hr Land Registry Extract | Official government explanation of what the land register proves. | We used it to emphasize the land registry as the central source of truth for ownership and encumbrances. We justified why buyers should always check the extract before paying. |
| IRS Form 8938 Guidance | The IRS's own guidance on what Americans must report under FATCA. | We used it to explain that foreign real estate itself is generally not a Form 8938 specified foreign financial asset. We framed the FATCA and FBAR conversation accurately. |
| Croatian Bureau of Statistics (DZS) | The national statistics agency publishing official tourism data. | We used it as a hard proxy for American presence, citing that US tourists accounted for 4.2% of foreign nights in April 2025. We answered "are Americans buying" without guessing. |
| US Treasury Department | Official announcement of the US-Croatia tax treaty signing. | We used it to confirm the treaty was signed in December 2022 and explain its intended protections. We noted it still awaits ratification as of early 2026. |
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