CHAPTER TWELVE: Property Investing in Croatia

Named ‘the Pearl of the Adriatic’ by George Bernard Shaw, Croatia is becoming increasingly popular as a holiday destination. Travel and tourism now accounts for around 22% of the country’s GDP and for 27% of its total employment. It is easy to see why the country has such appeal, with tons of cultural heritage (its position in Europe gives Croatia a rich mixture of Mediterranean, southern European and Balkan cultures), a clean environment with rich plains and deep forests, and over 1,000 beautiful islands.

Before the dissolution of Yugoslavia, the Croatian Republic was one of its most prosperous and industrialised areas, with a per capita output around one third above the Yugoslav average. After a mild recession in 2000, the economy stabilised, and growth has averaged between three and four percent for the last several years. This should be accelerated by the country’s accession to the EU, scheduled for 2008. Where foreign investment is concerned, the government has introduced several measures to make the climate more attractive, including the establishment of the Agency for Trade and Investment Promotion. Foreign investors have the same rights and status as domestic investors and may invest in nearly every sector of the economy, although it is necessary to seek permission from the Ministry of Foreign Affairs before making any property purchases.

Is This a Good Place to Buy?

Croatia is becoming popular with British buyers, with over 300 properties sold in 2004. The country has a number of natural advantages as a tourist destination…