We live in the information age, a time when knowledge is available to all at a mouse click away. This fact has changed our lives completely, and it sure did affect real estate markets. Nowadays, if you learn something useful, online or offline, be sure you aren’t the first one to know it. Therefore, it gets increasingly harder to find high-potential real estate assets at an affordable cost. Here is another secret that is no longer one: The real estate market of Croatia is booming, but it’s yet to be extensively utilized by real estate investors.
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My name is Ofir Bar, an investor with over two decades of experience in real estate markets. I have been looking for easy-entry real estate markets all around the world and came to the conclusion that Croatia offers investors some appealing opportunities. Allow me to explain my statement.
Nature over nurture
Above all, Croatia enjoys some distinct advantages that exist thanks to its unique geographic location. This country constitutes a major global interchange for both passengers and cargo via air, sea, and land. Moreover, it connects Eastern and Western Europe and the Mediterranean Sea, since every single European country is at a distance of a maximum three-hour journey from it. For this reason, Croatia is very appealing to business.
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Croatia is also a leading touristic destination, which is, of course, great for commercial real estate. Asides from all the historical structures and beautiful cities, it has a vast and appealing coastline, not to mention the great weather. Adding the variable of high affordability, it’s not surprising that the number of incoming tourists is rising at a fast pace. In 2006, 9.4 million tourists visited Croatia. This number has been consistently rising till 2019, the pre-COVID year, in which 19.6 million tourists visited it! This increasing potential hasn’t gone unseen by the local authorities: The Croatian government has been vastly investing in hotels, campsites, theme parks, and many more touristic attractions.
Nurture over nature
Let’s not forget Croatia’s geographic advantage wouldn’t have been so helpful if it weren’t for the efficient local transportation infrastructure. Croatia currently operates six primary seaports with sufficient capacity to accept and send off international cargo shipping. It also has nine international airports. This Adriatic country is far from finishing improving its transportation development: The seaports of Vukovar and Zadar are future to be further developed and extended. Moreover, millions are invested in the development of the pan-European transport network to strengthen connections with other European cities.
Unlike many other countries, Croatia seems to be very welcoming to foreign investments. Foreign investors who put their bet in Croatia can hold up to 100% interest in a Croatian company’s shares. More than that, they can get substantial tax incentives. For example, profit tax can reach 0%, for up to 10 years in designated free trade zones.
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Remember that Croatia is now an EU country, meaning it has access to the substantial business opportunities the EU provides. For example, businesses can import and export goods within the EU without restrictions. Furthermore, Croatia has access to 1 billion euros of the EU structural funds each year - most of it is used to promote entrepreneurship. The icing on the cake is this: Foreign investors who open a business in Croatia have an equal right, as locals have, to compete for these funds.
It’s not too late
Our world is turning into a global village in front of our eyes. In a global village, exclusive information is rare, so I advise you not to wait for it. Croatia is blooming, and that includes the financial aspect: The local government encourages foreign investments, tourism income is skyrocketing, and the status of Croatia as a mega-crossroads only strengthens over time. I believe it’s not too late for the common investor to set a foothold in the real estate market of Croatia. You should definitely take this into consideration.