With the unrest of the 1990's far behind it, Croatia has been coming into its own over the past few years. Slowly but surely it is becoming a place for Brits to holiday in once again, and beyond this, to invest by buying in property.

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Croatia country profile
Capital City: Zagreb
Area: 56,542 sq km / 21,831 sq miles
Population: 4,422,000
Time Zone: GMT +1
Country dialing code: 385
Currency: Croatian Kuna (HRK)

Croatia Climate
Croatia has a mainly Mediterranean and continental climate with hot summers and cold winters. Croatia's official holiday season is April/May to October, but in and around Dubrovnik the weather can be pleasant outside of this period.

Accessibility
Although no low-cost airlines currently offer flights to Croatia, you can visit most resorts in Istria by flying year-round with Ryanair from Stansted to Trieste airport in Italy, a couple of hours from most Istrian resorts. 

Croaita country highlights
Despite its attractive mountains, rolling, wooded hillsides and deep blue lakes, it is the 2,000 kilometres of Adriatic coastline that hooks visitors on the idea of buying a property in Croatia. Sweeping white beaches fringed with turquoise shallows, secluded inlets, thin strips of land knifing out of a cobalt sea, and over 1,000 islands strung like seaweed along the mainland. Croatia's coastline is undeniably dramatic.

Permanent move to Croatia
Visitors with a UK passport can enter Croatia for stays of up to three months without a visa.  Once Croatia enters the EU it will open up the opportunities for people wanting to make a permanent move to the country.

Buying property in Croatia
Property prices in Croaita have been rising steadily for the last 15 years, and not so steadily since early 2003 after it became popular with British and Irish buyers.

While Croatia currently has more immediate potential for rental income, most buyers are still buying property for the lifestyle rather than an investment. For this reason, those buying property in Croatia are mainly interested in the Southern Dalmatia, from, and including, Dubrovnik to Split and the islands in between, but there is also some potential on the Istrian peninsula in resorts that can easily be reached from Trieste (Italy).

Croatia's average property price is around 80,000 to 150,000 euros.

Croatia attracts a more cultured clientele with a requirement for a higher level of accommodation, for which they are prepared to pay a premium for.  However, buying property in Croatia can be a bit of a drag: at present, you may face delays of six months for approval from the Ministry of Foreign Affairs.  A foreigner technically requires approval by the Ministry of Foreign Affairs (MFA) to buy property. This can take in excess of six months, but it is common practice to 'buy' the property and take over the use of it while waiting for permission, which is a formality. Those buying property in Croatia also have the option of setting up a Croatian registered company, and then buying the property in the name of the company. As the company is a Croatian entity, there is no requirement for MFA approval and completion can take a matter of weeks.

With its EU membership likely to be less than two years away bringing with it the possibility of low cost airlines, there is plenty of potential for investment.

Destination Hotspots

Istria
Only a few miles from Trieste in Italy, the Istrian peninsula has a distinctly Italian flavour. Towns such as Rovinj may be less popular currently, but for 100,000 euros an investor can easily pick up an old stone house.

Dalmatia
The region of Dalmatia has scenes suitable for every homebuyer – Split, an old town with a thriving outdoor café culture, wrapped around a modern harbour and suburbs; the island of Brac, known for its pristine beaches and quiet fishing villages; or Dubrovnik, a treasure trove of medieval and baroque architecture.   In Dubrovnik, a three-bedroom apartment with sea views costs 220,000 euros, while a luxury furnished apartment with views of Dubrovnik's Old Town and Lokrum Island costs 960,000 euros.  In Omis, Southern Dalmatia, a central-city loft apartment, 50 metres from the sea, costs 70,000 euros. In nearby Mutogras, a villa with private beach costs 460,000 euros.

Search for property in Croatia

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Useful websites about Croatia:
An online Croatian travel guide 
A site about Croatia 
The city of Istria 
Dubrovnik tourist board

Article first published in May 2006 and updated in June 2007