Croatia has become one of Europe’s most attractive property destinations. EU membership, strong tourism demand and a stable legal system have made the Croatian real estate market increasingly appealing to international buyers, especially from the Croatian diaspora.
Navigating the legal, tax, and administrative rules from overseas, however, can be complex.
To shed light on what buyers and sellers from abroad need to know, Croatia Week spoke with Martina Naletilić, CEO of Zagreb-based Lirio Lucas Real Estate, who explains in detail the key rules, requirements, and common pitfalls involved in property transactions from abroad.
Can Foreigners Buy Property in Croatia?
In most cases, yes.
EU citizens can buy property in Croatia under the same conditions as Croatian nationals.
Non-EU citizens may purchase property if there is a reciprocity agreement between Croatia and their home country. In these cases, approval from the Croatian Ministry of Justice is required, a process typically handled by a lawyer or authorised representative.
Buying Property in Croatia: Step by Step
When properly managed, the buying process in Croatia is transparent and legally secure.
1. Property selection and legal due diligence
Before signing any agreement, ownership status, zoning, permits and potential debts must be carefully checked.
2. Pre-contract and deposit
A pre-contract agreement is often used, with a deposit paid to secure the property.
3. Sales contract and notarisation
The sales contract must be notarised in Croatia. Buyers who are abroad can complete this step using a Power of Attorney, without the need to travel.
4. Registration of ownership
The final step is registration in the Croatian Land Registry, which officially transfers ownership to the buyer.
Taxes and Costs When Buying Property
Foreign buyers should budget for the following costs:
Property transfer tax (usually paid by the buyer, unless otherwise agreed)
Legal and notary fees
Real estate agency commission
Land Registry fees
Newly built properties sold by a company may be subject to VAT instead of property transfer tax. A professional agency or legal advisor should provide a clear breakdown of all costs in advance.
Selling Property in Croatia as a Foreigner
Foreign owners are free to sell property in Croatia at any time.
Key considerations include:
Capital gains tax, which may apply if the property is sold within a certain period after purchase
Possible tax exemptions if the property was a primary residence or held long-term
All sales must be officially registered, and proceeds can be legally transferred abroad
Proper tax planning can significantly reduce potential liabilities.
Martina Naletilić, CEO of Lirio Lucas Real Estate
Renting Out Property in Croatia: Income Rules
Many foreign owners choose to rent out their Croatian property, either long-term or as a holiday rental.
Rental income is subject to Croatian income tax
Short-term tourist rentals must be officially registered and categorised
Owners must comply with tourist taxes, reporting requirements and local regulations
Many owners choose to work with a local agency to handle compliance and day-to-day management, making remote ownership far easier.
Why Work with a Croatian Real Estate Agency?
Buying or selling property from abroad often involves language barriers and complex legal and administrative procedures. A trusted local agency can provide:
Access to verified, legally clean properties
Coordination with lawyers, notaries and tax advisors
Guidance on taxes and regulations
Power of Attorney solutions for remote buyers
Market insight, negotiation support and after-sales services
For many foreign clients, professional local support is the key difference between a stressful transaction and a secure investment.
Croatia offers outstanding lifestyle and investment opportunities for international buyers, but success depends on understanding the rules and working with experienced local professionals.
Whether purchasing a holiday home, investing in rental property or selling real estate from abroad, expert guidance ensures that every step of the process is safe, compliant and financially sound. Partnering with a reliable Croatian real estate agency is often the smartest first step.
