Incentives for the purchase of a first property: So far, over 5 and a half million euros in subsidies have been approved.

When considering the purchase of your first property, it's important to be familiar with the incentives provided by the state. The Agency for Legal Transactions and Real Estate Mediation (APN) opened applications on June 5, 2025, for tax refunds on the purchase or construction of a first residential property. This is a permanent measure that makes it easier for young people and young families to solve their housing issues, reducing the financial burden when entering their own home.


By September 2, 2025, APN received a total of 1,604 requests for tax refunds on the purchase of a first property. Of these, 941 requests were processed, of which 700 were complete, and 688 requests were approved. 117 requests were rejected, while 124 requests were sent for additional documentation. Only a small portion of the rejected requests relate to properties whose price per square meter exceeds the prescribed limit.


VAT and PPN Refund: How it Works


The VAT refund applies to new construction and allows buyers to recover the amount of tax paid, while the PPN refund applies to older properties. The total value of approved subsidies so far amounts to 5,631,473 euros – of which 4,228,603 euros is a VAT refund and 1,402,870 euros is a PPN refund. The average amount of support for VAT is 14,632 euros, while the average PPN refund is 3,516 euros.


About 289 approved requests relate to new construction, and 399 to older construction. The most approved requests come from the City of Zagreb (376), followed by Zagreb County, Primorje-Gorski Kotar County, and Split-Dalmatia County. Thus, almost all Croatian counties participate in the program, which shows the availability of support throughout the country.


Who Can Use the Incentives?


The average age of applicants is 32 years, and the program is intended for people between 18 and 44 years of age, in accordance with the amendments to the Socially Encouraged Housing Act. The average number of household members is two people, but some requests cover larger households of up to six members. The area of the properties varies, the average is 66 m², and the price per square meter is on average 2,285 euros.
The lowest price per m² was 186 euros (Virovitica-Podravina County), while the highest was 5,013 euros in Split-Dalmatia County. The program thus covers a wide range of property types and locations, from smaller apartments in the interior to exclusive new buildings on the coast.


Tips for Buying Your First Property with Incentives


Prepare all documentation in advance – a complete application has a greater chance of approval.
Check the conditions of the square footage and price per m² – properties above the prescribed limits do not enter the program.
Plan the purchase of new construction or old construction – VAT is refunded on new construction, and PPN on older construction.
Inform yourself about county rules – some counties have additional criteria.
Use official sources – all information about APN and tax refunds is available on the APN website and on the Ministry of Physical Planning, Construction and State Assets.


Buying your first property can be challenging, but the available incentives for buying a first property and tax refunds significantly facilitate entering your own home. Inform yourself in time, prepare the documentation, and check the conditions to make the most of the rights that the state offers.

For more information on the conditions you must meet in order to apply for a refund, read our blog.