Where do expats buy property in Croatia?

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

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INVESTROPA

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.

How this content was created 🔎📝

At InvestRopa, we explore the Croatian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Zagreb, Split, and Dubrovnik. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

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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.

Which parts of Croatia are the most popular with expats when buying property?

The Dalmatian coast dominates expat property purchases in Croatia, with Split, Dubrovnik, Makarska, and Trogir leading as prime destinations.

The Istria peninsula attracts significant numbers of German, Austrian, and Slovenian buyers, particularly in Rovinj, Pula, and Poreč. This region offers a blend of coastal access and rural charm with traditional stone villas and modern developments.

The Kvarner Bay region, including elegant Opatija and well-developed islands like Krk and Lošinj, appeals to expats seeking year-round tourism potential and spa town atmosphere. Croatian islands such as Hvar, Brač, and Korčula represent exclusive markets with high demand for boutique rental properties and luxury second homes.

Zagreb, Croatia's capital, is experiencing growing expat interest for urban apartment investments and long-term rental opportunities. The city offers stability and growth potential outside the seasonal coastal markets.

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

How much does it typically cost to buy a house or apartment in those areas?

Property prices in Croatia vary dramatically between regions, with coastal areas commanding premium prices compared to inland locations.

As of September 2025, the Dalmatian coast averages €3,813 per square meter, with Split, Dubrovnik, and Hvar ranging from €2,700 to €5,000 per square meter. Sea views add an additional €350-€400 per square meter to these already premium prices.

The Istria peninsula offers more moderate pricing at €2,863-€3,699 per square meter, making it attractive to budget-conscious expats seeking coastal access. Kvarner Bay properties range from €1,800-€2,700 per square meter, representing good value for established tourist areas.

Zagreb apartments cost €2,600-€3,000 per square meter for both used and new properties, while inland Croatia offers significantly lower prices at €1,521 per square meter average outside tourist regions.

What kinds of properties are expats actually buying—apartments, villas, or land?

Apartments represent the most common property type purchased by expats in Croatia, particularly in Split, Zagreb, and coastal towns where they offer easier maintenance and better rental potential.

Seafront villas and renovated traditional stone houses are highly sought after on islands and along the coast, especially among buyers seeking luxury vacation homes or premium rental investments. These properties often require significant renovation investment but offer unique character and potential for high returns.

Raw land purchases by foreigners are relatively rare due to legal restrictions and complexity, though possible in certain non-agricultural zones. Most expats prefer ready-to-use properties or those requiring cosmetic improvements rather than ground-up development projects.

Renovated historic properties in medieval towns like Dubrovnik and Trogir attract expats interested in cultural heritage and authentic Croatian architecture, despite higher purchase prices and ongoing maintenance requirements.

Are there particular cities or coastal towns where foreigners make up a large share of buyers?

Foreign buyers represent a substantial portion of property transactions in Croatia's most desirable locations, particularly in premium coastal and island markets.

Dubrovnik, Split, Hvar, and Brač consistently show high foreign buyer participation, especially for holiday homes and rental investment properties. These UNESCO World Heritage sites and popular tourist destinations attract international buyers seeking both lifestyle and investment returns.

Istrian towns including Poreč, Rovinj, and coastal Pula see significant Austrian, German, and Slovenian buyer activity due to proximity and cultural connections. The region's wine country and rural charm appeal to northern European buyers seeking second homes.

Opatija and select island towns often experience foreign buyers comprising a large percentage of total transactions, driven by limited supply and strong tourism fundamentals. Island properties particularly attract buyers seeking exclusive locations with rental potential.

What is the legal process for a foreigner to purchase property in Croatia?

The legal process for foreign property purchase in Croatia depends primarily on nationality and EU membership status, with EU citizens enjoying the same rights as Croatian nationals.

EU and EEA citizens can purchase property under identical rules to Croatians, requiring only standard documentation including passport, Croatian tax number (OIB), and proof of funds. The process involves signing a pre-contract, paying a deposit, conducting due diligence, and completing the notarized final contract.

Non-EU buyers must have reciprocity agreements with Croatia, which currently includes the US, UK, and most OECD countries. These buyers require Ministry of Justice approval before finalizing purchases, adding several weeks to the transaction timeline.

The standard process includes verifying land registry records, obtaining legal clearances, transferring funds through official banking channels, notarizing the purchase contract, and registering ownership with local authorities. Final registration can take weeks or months depending on administrative efficiency.

Professional legal representation is highly recommended for all foreign buyers to navigate complex bureaucracy and ensure proper documentation, though not legally required for EU citizens.

Are there restrictions on which nationalities can buy, or on what type of property they can purchase?

Croatia maintains different property ownership rules based on buyer nationality and property type, with EU citizens enjoying the fewest restrictions.

EU and EEA nationals face no significant restrictions on residential property purchases, including apartments, houses, and most commercial real estate. They can buy property for any purpose including vacation homes, permanent residence, or investment.

Non-EU buyers from countries with reciprocity agreements can purchase most residential and commercial properties but face restrictions on agricultural and forest land ownership. These buyers must demonstrate legitimate interest and may require additional documentation proving the purpose of purchase.

Agricultural land restrictions apply to all foreign buyers, with complex rules governing farm property and rural land purchases. Forest land ownership is similarly restricted, requiring special permits and justification for foreign acquisition.

Some coastal and border areas may have additional security-related restrictions, though these rarely affect typical residential purchases in established tourist zones and urban areas.

How high are the property taxes and ongoing ownership costs for expats?

Croatia's property taxation system is relatively favorable for foreign owners compared to many European countries, with no annual national property tax.

Cost Type	Rate/Amount	When Paid
Real Estate Transfer Tax	3% of purchase price	At purchase
VAT (new properties)	25% on new builds	At purchase
Notary Fees	€500-€1,500	At purchase
Legal Fees	1-2% of purchase price	At purchase
Agency Commission	2-3% of purchase price	At purchase
Annual Property Tax	None nationally	N/A
Tourist Tax (some areas)	Minor charges for second homes	Annually

Purchase costs include 3% real estate transfer tax on resale properties, while new constructions are subject to 25% VAT instead. Ongoing ownership costs are minimal, with only utilities, maintenance, and occasional local tourist taxes for second homes in certain municipalities.

What are the rental yields like in Croatia's main expat property hotspots?

Rental yields in Croatia's expat property hotspots vary significantly based on location, property type, and rental strategy, with short-term holiday rentals generally outperforming long-term leases.

High-demand coastal zones including Split, Dubrovnik, and Hvar deliver gross rental yields of 5-7%, with luxury seafront properties achieving the upper end of this range during peak summer seasons. These properties benefit from Croatia's booming tourism industry and limited supply of premium accommodations.

Istrian properties and island locations typically generate 4-6% gross yields, with short-term holiday rentals dominating the market through platforms like Airbnb and Booking.com. The region's wine tourism and rural appeal extend the season beyond traditional beach holidays.

Zagreb offers more modest but stable yields of 3-4.5%, with centrally located apartments and student housing achieving higher returns. The capital's year-round demand and growing business sector provide reliable long-term rental income.

Island properties, while expensive to purchase, can achieve premium rental rates due to exclusivity and limited supply, though yields depend heavily on tourism patterns and seasonal demand fluctuations.

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.

Do most expats buy for vacation use, retirement living, or as an investment?

Vacation and holiday home purchases represent the majority of expat property transactions in Croatia, driven by the country's stunning coastline and growing tourism reputation.

Northern European buyers, particularly Germans, Austrians, and Scandinavians, predominantly seek second homes for personal use and occasional rental income. These buyers value Croatia's proximity to their home countries and the Mediterranean lifestyle at relatively affordable prices compared to established destinations like France or Italy.

Retirement living in Croatia is growing rapidly as expats discover the country's favorable climate, lower cost of living, and EU membership benefits. Coastal towns and islands attract retirees seeking year-round warmth, while inland areas appeal to those prioritizing affordability and rural tranquility.

Pure investment purchases are increasing, with buyers targeting short-term rental properties in high-tourism areas and long-term appreciation in emerging destinations. The growth of digital nomadism and remote work has also created demand for well-equipped urban properties.

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

How does the buying process differ if you need financing as a foreigner in Croatia?

Obtaining financing as a foreigner in Croatia presents significant challenges, with most banks requiring Croatian residency and extensive documentation before approving mortgages.

Foreign buyers typically need 30-40% down payments, proof of stable income, Croatian banking history, and local legal review of all documentation. The process can take several months and often proves more expensive than home-country financing options.

EU citizens have slightly easier access to Croatian mortgages than non-EU buyers, but still face extensive bureaucracy and higher interest rates than domestic borrowers. Most successful applicants have established Croatian residency or significant local business interests.

Alternative financing strategies include securing loans against assets in home countries, using international private banking services, or partnering with Croatian nationals for property purchases. Many expats choose all-cash purchases to avoid financing complications entirely.

Legal requirements include currency exchange documentation, source of funds verification, and compliance with Croatian banking regulations for large international transfers used in property transactions.

Which regions are growing fastest in terms of expat property purchases?

The Zadar and Šibenik coastal areas are experiencing the fastest growth in expat property purchases, offering lower entry costs than established Dalmatian destinations while maintaining strong tourism potential.

Select Croatian islands, particularly Vis, Brač, and Hvar, show accelerating foreign interest due to limited property supply, increasing tourism infrastructure, and growing recognition as exclusive destinations. These islands benefit from improved ferry connections and boutique tourism development.

Istria continues expanding its expat buyer base, particularly among buyers seeking lifestyle changes and boutique tourism opportunities in Croatia's wine country. The region's proximity to Western Europe and cultural sophistication attract quality-focused investors.

Kvarner Bay region gains momentum as buyers discover its year-round appeal, spa tourism heritage, and relative affordability compared to southern coastal areas. The area's established infrastructure and elegant architecture appeal to discerning expat buyers.

Emerging inland destinations near major cities show growing interest from buyers seeking affordability and rural lifestyle options while maintaining access to urban amenities and transportation links.

What are the common pitfalls expats face when buying property in Croatia and how can they avoid them?

1. **Unclear property titles and outstanding debts** - Always conduct thorough legal due diligence through qualified Croatian lawyers and verify property status through public registries before making deposits. 2. **Non-conforming building permissions** - Unauthorized construction is common in Croatia; require comprehensive technical inspections and legal verification of all building permits and compliance certificates. 3. **Hidden taxation and local fees** - Research local municipality charges for second homes and tourist properties, as these vary significantly between areas and can impact ongoing ownership costs. 4. **Delayed ownership registration** - Property registration can take months in Croatia; ensure all payments are conditional on clear title transfer and maintain legal protection throughout the process. 5. **Financing and currency complications** - Clarify all banking requirements, residency status needs, and currency exchange regulations before signing contracts or making deposits.

Thorough preparation including qualified legal representation, reputable local real estate agents, comprehensive property inspections, and clear understanding of all costs and timelines prevents most common expat property purchase problems in Croatia.

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. Adrionika Croatia Real Estate Investment Guide
2. Nekretnine.hr Property Prices
3. E1 Holding Croatia Market Analysis
4. InvestRopa Croatia Price Forecasts
5. Connect Houses Popular Regions Croatia
6. CroEstate Best Cities Croatia
7. Connect Houses Regional Price Comparison
8. Croatia Week Property Sales Analysis
9. Expat Focus Croatia Property Guide
10. Immigrant Invest Croatia Guide