Real estate market in Croatia has low scores for a longer time now. Since the beginning of recession, the market still didn’t fully recover. New government of Croatian Democratic Union with Zdravko Marić as minister of finances will try to stimulate the revival of this market with legislative changes.


A new complete tax reform was introduced, and it also concerns a real estate market. From 2017, sales and purchase of properties should be cheaper. According to the new proposition, benefits for the first property purchase will be terminated, but the general tax rate of a real estate market will fall from 5 to 4 percent. This suggested tax rate decrease on the real estate market will have a positive impact on a real estate market restoration in Croatia.

Unifying real estate tax starting from 2018.

In 2018, a new change awaits real estate owners – the unifying real estate tax will replace utility charges. The main news are that in a tax calculation, together with existing coefficients for utility charges calculation (surface, zone and business purpose), two new coefficients will be introduced: age (year of construction) and building condition.

The owners of older properties can expect the reduction of ownership costs, while the owners of newer properties will have bigger costs than before. According to the statement of minister Marić, most of the citizens won’t feel substantial differences because of these changes.

With a real estate tax introduction starting from 2018, also the taxes for vacation resorts and monumental rents will be united into the one tax.

Real estate market in Croatia