Croatia's Public Debt Growing

Basing upon Numbeo.com data we have compared living in Croatia with some other destinations. Here is the comparison of Vienna in Austria vs Split in Croatia. We conclude that it is better to earn in Vienna and spend in Croatia where the cost of living is way lower.

The moratorium on EU physical persons and companies buying agro lands in Croatia was not prolonged from July 1st, 2023. It means that EU private and corporate buyers got an opportunity to buy agricultural properties in Croatia. For many years it was neessary to form a local Croatian company for that purpose and maintain it. Now local company formation will no longer be needed. This news is exciting for commercial real estate buyers as it opens up a whole new world of investment opportunities within the country. With an abundance of fertile soil suitable for farming or ranching activities, there are plenty of possibilities when it comes to investing in agricultural land in Croatia – from vineyards to olive groves and beyond! Lifting this ban also allows foreign investors access into one of Europe’s most rapidly growing economies which could potentially lead them towards lucrative financial gains over time if their investments prove successful. In fact many experts believe that removing this restriction could have long term benefits not only for those who wish to invest but also for local farmers who may benefit from increased competition within their industry leading towards better prices paid out per crop yield etc....

Yes, foreigners can buy property in Croatia especially if they reside inside of the EU/EEA. Starting from 2009, the citizens of all EU/EEA Member States are eligible to buy a property in Croatia of any type under the same conditions as Croatian citizens. In this case, there is no concept of the «first» and «second» home with related expenses. There is no annual property tax in Croatia. There are also building lands in free unrestricted sale. As for the acquisition of agricultural land by foreigners, there is a moratorium on their acquisition until the summer of 2023. However there is a 90% chance that this moratorium will be lifted on July 1, 2023. Not only individuals, but also legal entities can purchase real estate in Croatia. If the buyer finds it appropriate, it is possible to establish a Croatian company and purchase real estate on it. Pay attention to the permissible building factor! In 2004, a decree on the protection of the coastal zone came into force: it states that within 70 m from the coastline construction outside settlements is prohibited, and in the range up to 1000 m more stringent requirements are imposed on construction activities.

As the modern real estate market continues to expand, buyers from Germany and Austria are increasingly looking for a second home in Croatia. With its crystal clear sea waters, stunning beaches, quaint villages and rich cultural heritage, this country has become a popular destination for Germans and Austrians in search of an idyllic getaway. In particular, for such buyers there are several factors that make buying property in Croatia particularly attractive. Firstly, Croatian legislation offers a significantly lower taxation for property owners compared to other European countries, which also applies to non-residents of the country. This means that German and Austrian investors feel more at ease when choosing a property here. Secondly, due to its location in the European Union (EU), citizens of EU member states such as Germany and Austria have easy access to own and manage their property in Croatia within hours of driving on excellent highways without having to go through difficult bureaucratic procedures or obtain special permits or visas in advance. Finally, while this is not necessarily limited to German and Austrian buyers, it should also be noted that property prices in Croatia remain fairly low compared to many other European countries, making it an ideal...

Year 2022 was unique and more than successful for real estate market in Croatia. Demand for Croatian properties was deferred for 2 years due to COVID-19 and all those buyers who were waiting for the abolition of restrictions flooded Croatia starting in February 2022. It was triple demand in comparison with all the previous years in all the categories of real estate. Rural villas in mid-Istria suddenly became the best-sold product, along with newly built apartments in the Zadar area. Krk Island was another magnet for the buyers of modern flats and traditional houses. By the end of the summer, the market of already built properties offered for sale was already almost empty. The Sellers could expect properties to be sold within 1-2 months and the speed of desision making was amazing. It was a Seller-market, the Sellers were aware of that and started to rise the prices for 5-10% weekly. Looking at the scenery after the battle for properties we can say that during last year prices rose 80-100%, i.e. they doubled for 80% of properties. Cheap apartments below 100,000 eur are presently non-existent products. The average price for a 2-bedroom apartment is starting now from 200,000 - 250,000...

The Croatian real estate market has never had such a hurricane demand as in 2021. Real estate buyers have flooded the country since April this year. There are 3-4 times more people who decided to become the happy owners of Croatian real estate than in 2019. One of the reasons was isolation and lack of travel in 2020, which led to a surge in consumer energy a year later. Another reason was rising inflation and negative bank rates, pushing EU buyers to seek the undervalued real estate market - and the Croatian market was the closest and easiest choice. The most popular format in 2021 was an Istrian detached villa with a pool up to 350,000 eur, which could even be 10 km from the sea. In second place are villas on the first line up to 1-1.5 million euros (mainly in Dalmatia). The third place was shared by land plots by the sea (almost all existing proposals were sold out) and 2-3-room apartments within walking distance from the sea up to 200,000 - 250,000 eur. A new trend has been identified - people are now trying to be more isolated. Previously, no one looked at remote islands with abandoned...