Tourism statistics clearly demonstrate why Croatia remains one of Europe’s most desirable destinations. With over 6,000 km of coastline, more than 1,100 islands, and approximately 300 days of sunshine per year, the country offers an exceptional Mediterranean lifestyle for both visitors and residents. Beyond its natural beauty, favorable climate, and welcoming culture, Croatia is widely regarded as one of the safest countries in Europe, with Numbeo reporting a very low crime rate of 18.36 out of 100. With a population of approximately 4 million and around 20 million tourist arrivals annually (excluding 2020 due to the COVID-19 pandemic), tourism continues to show long-term growth. This sustained demand supports rising real estate values and increasing returns for rental and leasing properties. While future growth is influenced by global and EU economic conditions, tourism and real estate in Croatia are projected to maintain stable, long-term expansion, supported by a strong business environment, solid economic fundamentals, and political stability within the European Union and the wider Balkan region.

Croatia has been a member of the European Union since 2013 and officially joined the Schengen Area on 1 January 2023, further strengthening its position as a stable and fully integrated European country. At the same time, Croatia adopted the Euro (EUR) as its official currency, significantly simplifying financial transactions and cross-border investments. As a member of NATO, Croatia benefits from strong security guarantees and long-term geopolitical stability. The country operates under a stable democratic system with a well-established legal and political framework, providing a secure environment for domestic and international investments. Surrounded by EU and Schengen countries to the west and north, Croatia shares non-EU borders with Bosnia and Herzegovina, Serbia, and Montenegro. Despite its strategic location, Croatia remains one of the safest and most politically stable countries in the region. Real estate and business investments in Croatia are widely regarded as secure long-term opportunities, supported by EU regulations, transparent ownership structures, and a stable political environment.

Croatia’s GDP is steadily growing, driven primarily by tourism and construction. Tourism accounts for around 20% of total GDP and represents one of the most important economic sectors in the country. The government is investing more than €10 billion in infrastructure projects to support continued growth in tourism and the real estate market. Investment activity in Croatia is closely linked to tourism, with strong returns generated through hotels, luxury villas, and high-end resort developments. Positive economic trends over the past five years position Croatia as an attractive destination for long-term investment. Alongside tourism, the construction and real estate sectors continue to expand, playing a leading role in the country’s economy. As one of the most desirable destinations to live and work, real estate development in Croatia continues to grow steadily.

Croatia is a Mediterranean country positioned in Central Europe, at the crossroads of Western and Southeastern Europe. It shares its longest land border with Bosnia and Herzegovina and is strategically located as a gateway to more than 500 million consumers across the European market. With major international airports in Zagreb, Split, and Dubrovnik handling over three million passengers annually, Croatia serves as an important link between Western and Eastern Europe. A long Adriatic coastline and major seaports in Pula, Rijeka, Zadar, Split, Ploče, and Dubrovnik ensure strong maritime connectivity for both passenger and cargo transport. The road infrastructure is well developed, with the A1 motorway connecting Zagreb with Dalmatia and Dubrovnik, widely regarded as one of the most modern and efficient highways in Europe.

The Croatian government actively enhances the investment environment through various incentives, including reduced or zero profit tax in designated investment zones, customs-free trade within the EU, double taxation avoidance agreements with more than 55 countries, and cash incentives for new employment. Croatia also benefits from more than €1 billion in EU-funded projects supporting infrastructure, business development, and local communities. Real estate taxation remains competitive compared to many European markets. A 3% real estate transfer tax applies when purchasing property from a private owner, payable once at acquisition, while VAT of 25% applies to new developments and taxable transactions. Since 2025, an annual property tax has been introduced for residential properties not used as a primary residence or not leased long-term, ranging from approximately €0.60 to €8.00 per square meter per year, depending on the municipality. Despite the higher VAT rate, overall real estate taxes in Croatia remain among the lowest in the European Union.

Investing in real estate in Croatia offers strong returns supported by steady price growth and high rental demand. Combined, these factors typically generate an average ROI of 8–10%, depending on the type of investment and location, with returns rarely falling below 5%, which remains highly competitive compared to other European markets. Many investors purchase properties for personal use during part of the year while renting them to tourists for the remainder, generating stable and attractive rental income.

A buy-and-hold strategy focused on long-term appreciation generally produces lower annual yields but can still deliver significant capital gains over time. Renovation projects are particularly popular in historic town centers, where buying, renovating, and reselling properties can generate profits of up to 30%, depending on execution, location, and market conditions.