As in all the countries we visit in A Change of Lifestyle, it is recommended that renting a property for your first lengthy period of time within a country is your best choice. 

Renting during Croatia’s “season” will find prices much higher than in the wrap-around months.  Europeans have re-discovered Croatia and flock to its lush shores to soak up the sun in the summer months.  Visit in the spring when the hills and forests are bursting with color.  Or the fall, during harvest.

Rental Property
It is advised that a local real estate agency be engaged before negotiating a long-term lease. Be sure they are registered as a “Nekretnine”  and the symbol “D.O.O.” follows their company name. 

Determine your fee arrangement with the realtor before looking at property.  Six percent is not unreasonable, but the fee can be negotiated. 

Language and custom differences can mean the difference between a disastrous and a successful venture, and using a local realtor will give you the protection you need. 

Be prepared to pay up to three (3) months fees in advance for a long-term lease.  Establishing a local bank account is advised as the fees need to be paid in Croatian Kuna. (Banking)  However, some landlords have been known to accept Euros, British Sterling and U.S. Dollars.  A typical lease term runs one year.

Buying Property
Non-Croatians can buy property in Croatia.  However, the regulations are cumbersome and the paperwork is extensive.  

An interesting note is that Croatia holds a reciprocal agreement pertaining to property ownership with all the EU countries, with the exception of Italy.  The U.S., Russian Federation and Hungary are also included in the reciprocal agreement. 

Italians, Swiss, Bosnian and Herzegovinan citizens can only buy property in Croatia if they intend to use is as their permanent residence. 

Approval from the Minister of Foreign Affairs (MFA) is necessary when a non-Croatian purchases property. 

A less complicated route to purchasing property is by forming a corporation in Croatia, stating that the specific purpose of that corporation is real estate acquisition.  Mutual reciprocity must also be in place when buying property, whether as a person or as a corporation.

Obtaining approval from the MFA is a lengthy process as several layers of approval must be granted, from the Croatian national government down to the local government.  It can take up to one year for the approval to be granted. However, the time is less if the purchase is being made in the name of a corporation.

There is no mortgage funding available in Croatia. All purchases are in cash.

If you buy a property in Croatia, be sure the lawyer representing you is not the same as the one representing the seller.  That constitutes a conflict of interest and is not to your advantage.

The Good News
While the Croatian coast has been teeming with tourists and expats seeking A Change of Lifestyle, the inland areas have been largely undiscovered.  The countryside is pristine, dotted with hills, rivers, fresh-water lakes and parkland. 

A new motorway from these inland areas connects to the international airport.  Skiing is excellent here and summer hiking will take your breath away.  Prices for homes needing renovation in this area can begin at under $10,000 U.S. 

It will be wise to understand that although Croatia has emerged from years of damaging conflict, the country is not the poor relative living in shambles.  Prices are lower than those found in other “Riviera” countries, but not “bottom of the barrel”. 

An astute investor will find that property values are climbing at a rate of at least 20% per year in Croatia.  As more Europeans and Westerners discover the reawakening of this paradise, values will continue to increase.