Why To Buy Real Estate in Croatia?

A Profitable Investment with Strong Returns

Mediterranean Living and Quality of Life

In recent years, property values in Croatia’s coastal regions have seen consistent growth, with prices in prime areas rising more than 20% over the past five years. The country’s thriving tourism industry fuels an active short-term rental market, particularly in cities like Split, Dubrovnik, and Zadar, where occupancy rates during the summer months often reach 80–100%. This means that many owners are able to generate an annual return of 4–8% from seasonal rentals alone, all while enjoying personal use of the property in the off-season. For those seeking both a lifestyle asset and a source of passive income, Croatia provides a rare and appealing balance.

Beyond financial returns, Croatia’s real estate offers a gateway to a truly enviable way of life. With more than 1,000 islands, crystal-clear waters, and historic cities steeped in charm, the Croatian coast rivals any Mediterranean destination. The pace of life is relaxed, the food fresh and rooted in local tradition, and safety standards are high. The climate is another draw — coastal regions enjoy over 2,600 hours of sunshine annually. These qualities make Croatia attractive not only for tourists, but for digital nomads, retirees, and families looking for a second home base in Europe.

High Rental Potential Fueled by Booming Tourism

Croatia’s tourism sector has exploded in the last decade, with over 18 million tourists visiting the country in 2023 alone. This has translated into a strong demand for short-term rentals, particularly on platforms like Airbnb and Booking.com. Well-located properties — especially those with sea views, pools, or close proximity to beaches — are frequently booked months in advance. Investing in such a property can deliver a dependable stream of income year after year, especially when managed professionally.

A Transparent and Foreign-Friendly Buying Process

Purchasing real estate in Croatia is relatively straightforward, even for non-residents. EU citizens can buy property directly in their own name, while non-EU citizens can do so with prior approval from the Ministry of Justice or by purchasing through a Croatian company. The country’s land registry is centralized and digital, making ownership verification and due diligence simple and transparent. At Lumarum, we work with experienced lawyers and notaries to ensure that every step of the process is handled professionally and in full compliance with Croatian law.

Low Taxes and Ongoing Costs

One of Croatia’s strongest advantages is its low taxation and minimal holding costs. Buyers typically pay a 3% real estate transfer tax unless purchasing a new build, in which case VAT applies instead. There is no annual property tax for most second homes, and rental income is taxed at a flat rate of 10%, plus local surtax. Furthermore, if you sell the property after two years, there is no capital gains tax. These low costs make property ownership in Croatia more financially attractive than in many neighboring EU countries.

Flexibility: Personal Enjoyment Meets Investment

One of the unique benefits of owning a property in Croatia is the ability to use it both as a personal vacation retreat and as an income-generating rental. Owners can block out preferred weeks for personal use while renting the property during peak periods. Lumarum provides full support — from obtaining rental permits and categorizing the property, to furnishing and connecting you with trusted local rental agencies. You stay in control while maximizing returns.

Demand is Rising, Supply is Limited

Croatia’s stunning coastlines and historical towns are protected by zoning laws and environmental regulations, which limit overdevelopment. While this safeguards the country’s natural beauty, it also means that prime property is scarce. Demand from both domestic and international buyers continues to grow, and with limited inventory in popular areas, prices are expected to continue rising steadily. Acting now secures both value and long-term appreciation.

Conclusion: Why Croatia, Why Now?

Croatia combines lifestyle, legal security, investment growth, and Mediterranean charm in a way that few other markets can match. Whether you're an investor, a remote worker, or simply someone seeking a better quality of life, buying property in Croatia is a strategic move — today and in the long term.

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Contact Lumarum — we’ll help you find, purchase, and manage your dream property on the Adriatic coast.