For Americans eyeing the Croatian real estate market, a lot of questions come up. Will you be allowed to buy? What laws apply? And is the market really a good opportunity?
Luckily, there’s good news. And the short answer is: Croatia makes it reasonably straightforward for U.S. citizens to purchase property. But just because it isn’t overly complex doesn’t mean it’s the same as buying property at home. Plus, the state you live in could make it much more difficult or simply impossible to buy Croatian property (more on that in the legal framework section below).
With this guide, you’ll learn what you need to know about buying property here in Croatia, including the real estate market, relevant laws, the major steps in the process, and the taxes you might face.
Is the Croatian Real Estate Market Affordable?
Croatia has become an appealing real estate destination, particularly along the gorgeous Dalmatian Coast and in cultural hotspots like Zagreb. But with that has come a steep rise in prices.
How did this renewed interest start? In 2013, Croatia joined the European Union. That made it much more accessible for other Europeans, and it put the country on the map for a lot of real estate investors.
But despite over a decade of growing activity, you can still find great properties (from sea-view apartments to rural fixer-uppers) at prices that might be more attractive than in comparable Mediterranean locales. And there are also lots of options beyond the coast in inland cities like Zagreb.
Legal Framework for Foreign Buyers
Americans can almost always buy property in Croatia. Crucially, a reciprocity agreement must exist between Croatia and the U.S. state you reside in, meaning Croatian citizens can also buy property in that state.
The following states have full reciprocity with Croatia:
- Alabama
- Arizona
- Alaska
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Missouri
- Montana
- Nebraska
- Nevada
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
If you live in the following states, you’ll need a permanent or long-term residence in Croatia to purchase property:
- Arkansas
- Hawaii
- Kentucky
- Minnesota
- Mississippi
- New Hampshire
- Oklahoma
- Vermont
Here are a few basics you need to have before buying:
- OIB (Personal Identification Number)
Ge this at a Croatian tax office. You need your U.S. passport, and then you’ll just fill out a short form. - Consent from the Ministry
If the property is not categorized as agricultural land and your U.S. state has reciprocity, you typically need approval from the Croatian Ministry of Justice and Administration (formerly the Ministry of Justice) or the Ministry of Foreign and European Affairs. - Restricted Areas
Certain regions—especially land considered a cultural heritage site or classified as agricultural—can have extra rules or outright prohibitions on foreign ownership.
Financing Your Purchase
Compared to some larger EU countries, Croatia’s mortgage market for foreigners is more limited. Croatian banks often want:
- A strong credit profile and proof of consistent income
- Your OIB and valid identification
- A detailed property appraisal
If getting a local loan proves too complicated, consider an international bank that handles foreign real estate loans or opt for a cash purchase if you have the funds available. Another workaround is obtaining financing in the U.S. (like a home equity loan on an existing property) and then using that cash in Croatia. But be mindful of exchange rates and wire transfer logistics.
Getting Croatian Property Step-by-Step
Step 1: Property Search
Look to local listing sites such as Crozilla or Njuškalo for extensive property listings.
Step 2: Hire a Real Estate Agent
Although not required, a Croatian real estate agent (agencija za nekretnine) is very recommended. Buying in Croatia means navigating a language barrier, international transfers of large sums of money, and cultural differences. Their commission (usually 2-4%) is more than fair.
Step 3: Legal Checks and Due Diligence
Your lawyer then verifies the land registry records (gruntovnica) to ensure the title is clear—no outstanding debts, liens, or co-owners who might complicate the sale. If it’s an older home, confirm it’s built in accordance with legal permits and is properly registered.
Step 4: Preliminary Agreement and Deposit
You’ll likely sign a preliminary contract (predugovor) once you and the seller agree on terms. And then you’ll typically have a 10% deposit. This contract lays out price, timeline, and penalties for backing out.
Step 5: Final Contract and Notary
The final purchase contract (kupoprodajni ugovor) is prepared by your lawyer or a notary (javni bilježnik). You and the seller sign it before the notary, who certifies the transaction. After that, you submit paperwork to the local land registry to register yourself as the new owner.
Other Costs to Look Out For
- Real Estate Transfer Tax: Usually 3% of the property’s declared value (for resale properties). Newly built homes sold by a company are generally subject to VAT instead.
- Notary and Lawyer Fees: Notary costs are typically a few hundred euros. Lawyer fees run about 1–2%.
- Real Estate Agent Commission: Often 2–4%.
- Registration Fees: Fees for updating the land registry are modest.
Tax Implications and Ongoing Costs
Annual Property Taxes
Some places impose higher taxes on properties located in prime tourist areas, so do your research if you’re buying a coastal or island getaway.
Rental Income and Capital Gains
If you rent out your Croatian property, you’ll owe Croatian income tax on that revenue, and you’ll need to report it on your U.S. tax return. Croatia and the United States have a tax treaty to help avoid double taxation. Learn more about that here. [link to Tax Liability blog]
Capital gains tax applies if you sell the property within two years of purchase. Beyond that two-year mark, individual sellers are exempt.
Inheritance and Gift Taxes
Croatia does impose inheritance and gift taxes, and including on property.
Welcome to Property Ownership in Croatia
You’re now a proud owner of Croatian property, which means you could be well on your way to becoming a dual citizen here.
Check out our complete guide for Americans looking to become Croatian dual citizens here.
