Real estate

Where to Buy Rental Property in Croatia: A Guide to Locations, Yields, and Costs for 2026

28-05-2026 / Regent Split

TL;DR: Buying a rental property in Croatia can be a profitable investment — but the yield depends on the location, rental model, and easily overlooked costs. Zagreb offers the most stable long-term demand, Split and Zadar high seasonal yields, and Rijeka and Varaždin an increasingly attractive ratio of entry price to yield. Gross yields range between 4 and 7% — net yield after taxes and costs is usually 30 to 40% lower.

The rental market in Croatia is undergoing a structural change: according to Eurostat, residential property prices in Croatia in the third quarter of 2025 rose by 13.8% year-on-year — more than twice as fast as the EU average of 5.5%. In the same period, Croatia recorded the third largest increase in property prices in Europe. For an investor planning to buy an apartment for rent, this means increasing asset value and stable rental demand — but also the need for precise calculation before signing a contract.

The difference between Zagreb, Split, and Rijeka is not just in the price per square meter. These are three completely different market models with distinct tenant profiles, income seasonality, and yield rates. This guide goes through all relevant cities with concrete numbers and all costs an investor must factor in.

Key Information
1. Key factors for choosing the best rental location
2. Zagreb: neighborhoods with the highest rental demand
3. Split, Zadar, and Rijeka: demand that never stops
4. Smaller cities and regions with investment potential
5. Comparison of top locations: price, demand, and profitability
6. How to choose a location according to your own needs
My experience with the rental market in Croatia
Regent helps you find the right property
FAQ

Why the rental market attracts investors in 2026

According to the Croatian Bureau of Statistics (DZS), the average net salary in Croatia for March 2026 is 1,555 euros (median: 1,317 euros). Zagreb records incomes above the national average, which supports the market's capacity to pay higher rents. As of 2026, a new Spatial Planning Act (Official Gazette 155/25) is in force, introducing the ePlanovi digital system and stricter limitations on construction expansion — which structurally limits the supply of new apartments and supports prices.

Key factors supporting investment attractiveness:

Limited supply of new construction due to new spatial planning regulations
From 2015 to Q3 2025, Croatia is one of the countries with the highest growth in real estate prices in the EU — according to Eurostat
Stable euro since 2023 increases transaction transparency and attracts foreign investors
Strong tourist demand on the coast supports short-term rentals
Real estate sales in the first 9 months of 2025 fell by 13% — fewer speculative purchases mean more stable market conditions for investors

Note: Regent anticipates moderate price growth of 3 to 4% in 2026 — according to estimates from late 2025.

Long-term or short-term rental: which model makes sense where

Choosing a rental model is as important as choosing a location. The same property can yield a completely different return depending on whether you rent it to tourists for a week or to a family for a year.

Long-term rental:

Stable, predictable income throughout the year without seasonality
Lower operating costs — no cleaning between guests, less wear and tear on furniture
Suitable for Zagreb, Rijeka, Varaždin and inland Croatia
Property rented long-term for at least 10 months a year, with a properly registered contract with the Tax Administration, is exempt from annual property tax
Suitable for investors who do not want to actively manage the property

Short-term tourist rental:

Higher price per night, but pronounced seasonality — high season lasts only 8 weeks (July and August)
Realistic annual occupancy for a premium coastal property: 60 to 70% in season — not on an annual basis
Significant operating costs: platform fees 15 to 20%, property management 15 to 30% of income, cleaning, utilities
Requires property categorization, registration in e-Turizam and payment of tourist tax
Flat-rate tax per bed for 2026 ranges from 20 to 300 euros annually depending on the local government unit (JLS) category
Income from short-term rentals is taxed at a flat rate per bed or at a rate of 12% on 70% of income

As of May 20, 2026, EU Regulation 2024/1028 is in force, obliging Airbnb and Booking to submit data on all renters to the competent authorities; as of January 1, 2027, the introduction of a mandatory registration number without which advertising will not be possible is planned

For short-term rentals in a residential building, the consent of at least two-thirds of co-owners is required according to the new Law on Building Management and Maintenance

For details on short-term tourist rentals and the specifics of investment properties by the sea, read here.

Zagreb: the most stable long-term rental market

Zagreb is the center of the long-term rental market in Croatia. The city has a university population, a developed business zone, and constant demand that does not depend on the season. The average rent in Zagreb is 923 euros per month.

Neighborhood analysis:

Zagreb — center (Donji grad, Gornji grad, Ilica)
Average rent: 900 to 1,500 euros / mo.
Tenant profile: young professionals, digital nomads
Gross yield: 4 to 5%
Note: high liquidity upon sale, slower return on investment

Zagreb — semi-center (Trešnjevka, Trnje, Maksimir, Črnomerec)

Average rent: 700 to 1,000 euros / mo.
Tenant profile: students, young couples, families
Gross yield: 5 to 6%
Note: optimal zone for long-term investors — good ratio of purchase price to rent

Zagreb — periphery (Dubrava, Sesvete, Novi Zagreb)

Average rent: 500 to 700 euros / mo.
Tenant profile: families, workers
Gross yield: 5 to 7%
Note: lower liquidity upon sale, but higher yield

For investors entering the rental market for the first time, Trešnjevka and Trnje offer the most optimal ratio of entry price, demand stability, and yield. Access to public transport consistently appears as a key criterion for long-term tenants.

On our website, view available apartments for rent in Zagreb.

Split, Zadar, and Dubrovnik: high yield, seasonal character

The Dalmatian coast operates on a different logic than Zagreb. Tourist rentals bring high incomes in summer, but require active management, entail higher operating costs, and stricter regulatory obligations as of 2025 and 2026.

Important warning for coastal investors: many properties, especially older stone houses, are not condominiumized — which prevents ownership registration and e-Turizam registration. Illegal construction or undeclared parts of a property directly prevent categorization and short-term rental until legalization is completed. These checks must be part of the due diligence process before any purchase.

Split:

Average rent (long-term): 600 to 1,230 euros / mo.
Gross yield (short-term tourist): 5 to 7%
Purchase price: ~5,183 euros/m²
Profile: investors who combine tourism in summer and long-term rentals off-season

Zadar:

Average rent (long-term): 450 to 900 euros / mo.
Gross yield (short-term tourist): 4 to 6%
Purchase price: ~3,808 euros/m²
Profile: investors seeking a lower entry price with similar tourist attractiveness

Dubrovnik:

Average rent (long-term): 900 to 1,500 euros / mo.
Purchase price: highest in Croatia
Note: high saturation with tourist apartments, increasingly strict regulations — high purchase price compresses net yield

Note on the Islands Act: The Republic of Croatia has a right of first refusal on certain categories of properties on islands, with a response period of 30 days from receipt of the offer.

Rijeka, Varaždin, Osijek, and Istria: underestimated potential

These markets are consistently underestimated, and precisely because of that, they offer a better ratio of entry price to yield than saturated coastal destinations.

Rijeka:

Average rent: 763 euros / mo.
Purchase price: lower than Split and Zadar
Gross yield: 5 to 6%
Advantage: demand consistent throughout the year — University of Rijeka, port, business sector
Profile: investor seeking predictable long-term income without seasonality

Varaždin:

Average rent: 536 euros / mo.
Purchase price: significantly lower than Zagreb
Gross yield: 6 to 7% — one of the highest in Croatia
Advantage: stable industrial base, University North, low competition among landlords
Profile: conservative investor with smaller capital seeking a high relative return

Osijek:

Average rent: 487 euros / mo.
Purchase price: among the lowest in Croatia
Gross yield: 6 to 7%
Advantage: Josip Juraj Strossmayer University, developed business sector, high annual growth in rental demand
Profile: investor entering with smaller capital and seeking a high relative return in a growing market

Istria (inland — Pazin, Poreč off-season):

Average rent (long-term): 500 to 700 euros / mo.
Advantage: less tourist saturation than the coast, more stable long-term tenants
Profile: investor who wants to combine tourist potential with a lower purchase price than Dalmatia

Formula for calculating yield: concrete examples

Rental yield is the most important indicator of investment profitability.

Gross annual yield (%) = (Annual rent ÷ Property purchase price) × 100

Net yield is obtained by deducting all costs — taxes, maintenance, agency fees, eventual property management. In practice, the net yield is usually 30 to 40% lower than the gross yield.

Example 1 — Zagreb, Trešnjevka, apartment 50 m²:

Purchase price: 175,000 euros
Monthly rent: 850 euros
Annual rent: 10,200 euros
Gross yield: (10,200 ÷ 175,000) × 100 = 5.8%
Net yield (after 35% deduction for taxes and costs): ~3.8%

Example 2 — Rijeka, apartment 50 m²:

Purchase price: 120,000 euros
Monthly rent: 700 euros
Annual rent: 8,400 euros
Gross yield: (8,400 ÷ 120,000) × 100 = 7.0%
Net yield (after 35% deduction): ~4.5%

Example 3 — Split, tourist apartment 45 m² (seasonal):

Purchase price: 190,000 euros
Rental income (7 months, with realistic occupancy): 12,000 euros gross
Gross yield: (12,000 ÷ 190,000) × 100 = 6.3%
Net yield (platform fees, flat-rate tax, cleaning, property management — ~40% deduction): ~3.8%

Costs every investor must factor in

Costs upon purchase:

Real Estate Transfer Tax (RETT): 3% of the purchase price for used properties. Young people under 45 who buy their first residential property are exempt from RETT, but this exemption does not apply to investment properties — it applies exclusively to properties where the buyer resides.

VAT for new construction: 25% (included in the price). A refund of up to 50% of VAT is exclusively available to Croatian citizens under 45 years of age who purchase their first residential property for personal residence — provided they live in it for at least 5 years. This right cannot be exercised by foreign nationals, nor does it apply to investment properties for rent. The property price per m² must not exceed 150% of the average price in the local government unit (JLS).

Agency commission: 3% of the purchase price + VAT.

Notary fees and registration: 300 to 600 euros depending on the property value.

Annual ownership costs:

Property tax: 0.60 to 8.00 euros/m² of usable area annually, according to the decision of the local government unit (JLS). Properties rented long-term for at least 10 months a year, with a properly registered contract with the Tax Administration, are exempt from this tax.

Rental income tax: 12% on 70% of the rent amount (30% flat-rate expenses are automatically recognized). As of January 1, 2024, the surtax has been abolished — which reduces the total tax burden, especially for landlords in Zagreb where the surtax was previously up to 18%.

Important: every long-term rental contract must be registered with the competent branch of the Tax Administration via Form RPO or the ePorezna system within 8 days from the start of the rental. Failure to register the contract is a tax offense.

Utility fees and reserve fund: 50 to 200 euros / mo. depending on the apartment and building.

Insurance: standard household policy does not cover short-term tourist rentals — a special policy or contractual addendum is required for this purpose.

Capital gains tax: upon sale of a property within 2 years of purchase, a 24% tax is paid on the realized capital gain. Read more about capital gains tax on our blog.

Legal framework in 2026: what investors need to know

A rental agreement must be concluded in writing — this is a legal obligation according to the Residential Lease Act (Official Gazette 91/96 and amendments). Certification of signatures or solemnization of the contract by a public notary is not a legal obligation, but it is recommended as it gives the contract the force of an enforceable document.

The contract must be registered with the Tax Administration within 8 days from the start of the rental via Form RPO or the ePorezna system.

For short-term tourist rentals, it is mandatory to:

Obtain a categorization decision for the property — a permanent decision is mandatory by December 31, 2026, for all who have a temporary decision
Register the property in the e-Turizam system and all guests in eVisitor
Pay tourist tax and flat-rate tax or income tax
As of 2027, have a registration number for advertising on platforms (EU Regulation 2024/1028)

For purchasing property on islands: the Republic of Croatia has a legal right of first refusal on certain categories of properties — the response period is 30 days from the submission of the offer.

How Regent Real Estate Agency can help you

Regent is a real estate agency operating in Zagreb, Split, Rijeka, and Istria, as well as the rest of Croatia, which means local market knowledge in all regions covered by this guide.

For investors, we offer:

Free market valuation of property
Legal verification of documentation and due diligence
Brokerage for purchase and rental
Administrative services
Consulting

Frequently Asked Questions (FAQ)

Which city in Croatia has the highest rental yield?

Varaždin and Osijek regularly record gross yields of 6 to 7% — higher than Split or Zagreb — precisely due to lower property purchase prices coupled with stable long-term demand. For short-term tourist rentals, Split and Zadar offer high seasonal yields, but with higher operating costs and regulatory obligations.

Can a foreigner buy a rental property in Croatia?

Yes — EU citizens can buy property under the same conditions as Croatian citizens. Non-EU citizens need to fulfill additional conditions — reciprocity or special approval. VAT and RETT refunds for the first property are exclusively available to Croatian citizens. More on buying for foreign citizens: https://regent.hr/vodic-za-strane-drzavljane

What is better — to buy a new build apartment or a used property for rent?

New builds offer a higher energy class, lower maintenance costs, and higher rent, but with 25% VAT included in the price. Used properties have a lower purchase price and only pay 3% RETT, which can improve the yield. The decision depends on the location, condition of the property, and rental model.

Do I have to register the rental agreement with the Tax Administration?

Yes — registration is a legal obligation within 8 days from the start of the rental, via Form RPO or the ePorezna system. Failure to register is a tax offense.

How much is the rental income tax?

For long-term residential rentals: 12% on 70% of the rent amount (30% is automatically recognized as expenses). Surtax has been abolished as of 2024. More about real estate taxes: https://regent.hr/blog/porezi-detaljno

Rental price data is based on market research by Njuškalo portal for 2025. Real estate price growth data according to Eurostat and DZS for 2025/2026. Tax and legal data according to the Croatian Tax Administration, APN, and current legislation.