Foreigners are profiting from the fact that there's no property tax in Croatia. Ever since we joined the EU, they've been buying up the most apartments, houses, and especially along the coast.

According to the last census, there are 249,243 residential properties for rent or vacation in Croatia. During the pandemic, we learned that 110,000 Slovenians own properties in Croatia. That's why we shouldn't be worried that Slovenia will ban its citizens from entering Croatia because of the coronavirus, for the sake of their citizens' interests, who own properties in Croatia. Since we joined the EU, foreigners, especially along the coast, have been buying the most apartments, houses, and various other properties. Slovenians, in particular, have bought 9,439 properties in Croatia since 2013, as per data from the Tax Administration of the Ministry of Finance.

Slovenci were also buying a large number of weekend homes on Krk in the old Yugoslavia, when foreigners weren't allowed to buy properties, only citizens of Yugoslavian republics. The most properties among Slovenians were owned in the municipality of Dobrinj. After Slovenians, since 2013, the most properties in Croatia were bought by citizens of Germany, Austria, Italy, Sweden, and Hungary.

Now, no one has access to data on how many foreigners currently own properties in Croatia, as the census, which includes a property census, will only be conducted next year. However, the question of property tax, which we're avoiding due to various interest groups, must be addressed, because foreigners, EU citizens, who have a standard that's uncomparable to ours, are profiting from our lack of property tax, and have the opportunity to buy properties at a lower price along the coast. Since 2013, citizens of Germany have bought 4,969 properties in Croatia, mostly apartments and houses. Austrians come in third, having bought a total of 2,867 properties, and they also mostly bought apartments and houses. The Italians come next, having bought 1,612 properties, and the fifth place goes to Swedes, who have bought 1,232 properties in Croatia since 2013.

As per the State Statistical Office's request for data on how many Croatian citizens and how many foreigners from the EU own properties in Croatia, the Tax Administration of the Ministry of Finance responded: "The Tax Administration is not competent to establish ownership of properties and does not have data on property owners in Croatia. We suggest that you submit your request to the land registry offices of competent local courts."

In a civilized state, such data should be available to the public, at one location, and not gathered from over a hundred land registry offices. However, the Tax Administration provided us with data on properties they have, based on their obligation to determine and collect taxes, contributions, and other public obligations. The Tax Administration sent us a review of the number of property sales by country of buyer from 2013 to 2019, stating that these data do not include all property sales, but only those for which they have completed the tax assessment process.

According to these data, the most properties in Croatia were purchased by citizens of Slovenia, Germany, Austria, Italy, Sweden, and Hungary. It is known that foreigners who bought apartments, houses, and other properties in Croatia do not only use them for vacation, but also for renting during the season.

For example, there are Swedes and Brits on Brač who hire locals to welcome guests, and the same is done by Germans who own properties along the coast and on islands. Citizens of the EU have the right to become property owners in Croatia on the same terms as Croatian citizens, except for agricultural land. Citizens of other countries can also become property owners in Croatia with a certificate from the Ministry of Justice.

Regarding the question of how many foreigners from the EU are renting out their properties in Croatia, the Tax Administration responded: "In relation to the question of the number of foreign citizens who are renting out properties in Croatia, on June 25, 2020, the Tax Administration recorded 3,390 non-residents who are taxpayers for income tax on the basis of renting out apartments, rooms, and beds to tourists, as well as camp organizers. There are also 998 non-residents, taxpayers for income tax on the basis of renting or leasing properties and other movable assets."

They also note that the data refers to all foreigners without a residence in Croatia, who are taxpayers for income tax, regardless of whether they are EU residents. Foreigners from the EU who bought properties in Croatia mostly bought apartments and houses. It is surprising that more Swedes have bought properties in Croatia than Hungarians, who have bought 949 properties.

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