At its session held on 14 March 2025, the Croatian Parliament adopted the Act on Amendments to the Act on Ownership and Other Real Rights, which will enter into force on the day of the Republic of Croatia’s accession to the Organisation for Economic Co-operation and Development OECD. The purpose of these amendments is to place nationals and legal entities from OECD member states on an equal footing with nationals and legal entities having their seat in the Republic of Croatia, as well as with those from the European Union, who already enjoy such status.

These amendments specifically pertain to the provisions regulating the acquisition of ownership rights over real estate by foreign persons, which could have serious repercussions on the real estate market in the Republic of Croatia, especially in locations along the Adriatic coast. This is particularly evident from the fact that, in 2024, foreigners purchased over 11,000 residential properties, according to data from the Tax Administration, accounting for 37.5% of all real estate transactions that year. This raises the question of whether, and to what extent, this share will increase following Croatia’s anticipated accession to the OECD by 2026, especially in light of these legal amendments that further liberalise the market.

How does the acquisition of ownership rights over real estate by foreign persons work in Croatia?

Nationals of EU member states may acquire ownership rights over real estate under the same conditions as Croatian nationals—that is, without any of the restrictions that exist or may exist for foreign nationals. Nationals and legal entities from OECD member states will now be granted the same status.

On the other hand, nationals of non-member states may acquire ownership rights over real estate in Croatia only if there is reciprocity between the Republic of Croatia and the country of which the buyer is a national. In addition to this principle of reciprocity, the prior consent of the Minister responsible for justice affairs is required, failing which the legal transaction is considered null and void. This consent constitutes an administrative act. According to the website of the Ministry of Justice, Public Administration and Digital Transformation, some of the countries with which Croatia does not have reciprocity include Azerbaijan, Afghanistan, India, Iraq, Iran, Kuwait, and Nepal.

Among OECD member states that are not also members of the EU are countries such as Canada, the United States, Iceland, Liechtenstein, Norway, the United Kingdom, Japan, Australia, New Zealand, South Korea, Israel, and others. In this context, it will be interesting to monitor developments in the Croatian real estate market—specifically, whether the share of foreign buyers in total real estate transactions will increase, and to what extent Croatia presents an attractive market to buyers from some of these overseas countries.