Tax relief for buying your first property – everything you need to know
Buying your first property is one of the most important steps in life. To make it easier for young people to acquire their own home, the Regulation on Support for the Acquisition of the First Residential Property has been in force since January 1, 2025. This program enables a refund of real estate transfer tax and a refund of 50% of the VAT paid, all with the aim of making housing more accessible and encouraging independent living.
This measure is part of the National Housing Policy Plan of the Republic of Croatia, the first strategic document that provides a comprehensive vision of housing in the country. The goal is clear – to make housing affordable while maintaining quality and legal security.
Who is entitled to the refund?
Financial support is available to Croatian citizens who meet specific conditions:
- the purchase agreement must be concluded after January 1, 2025,
- the buyer must not be older than 45 years,
- the applicant and family members must have residence at the purchased property’s address,
- the real estate transfer tax or VAT must be paid,
- the buyer and their immediate family must not already own another residential property.
It is also important to note that the property must be used for housing – if it is sold, rented out, or left unused within five years, the support must be returned.
What is the maximum size?
The Regulation distinguishes between apartments and houses, and the size of the property depends on the household size. For example, a single person is entitled to support for an apartment up to 50 m², while a family of four can receive support for an apartment up to 90 m². For houses, the limits are increased by 50%. Larger properties may also be purchased (up to 50% larger), but the refund is calculated only within the prescribed size limits.
How is the support calculated?
The calculation basis is the useful floor area of the apartment or house multiplied by the average square meter price in the relevant municipality. These data are regularly published by the Ministry of Physical Planning, Construction and State Assets.
If the purchase price is higher than the average, the calculation is made according to the average price. If it is lower, the agreed price is used.
For an indicative calculation, an official calculator is available on the Ministry’s website:
👉 Indicative tax refund calculator
Where and how to apply?
The application is submitted to the Agency for Transactions and Mediation in Immovable Properties (APN), together with all required documentation: the purchase agreement, proof of residence, property details, tax payment confirmation, and other prescribed documents. Grants are paid out in the order in which complete applications are received.
Conclusion
These measures bring significant relief to anyone looking to buy or build their first home. The refund of tax and VAT can provide a strong financial incentive and a turning point on the path to independent living. If you are under 45 and solving your housing needs for the first time, be sure to explore the conditions and check the refund amount you can receive via the calculator.
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