Can You Really Make Rental Income from Property in Croatia?

sarah2309
Sep 2
2 min read

If you’ve been dreaming about owning a vacation home abroad that also pays for itself, Croatia is one of the hottest markets to watch. With its 20+ million annual tourists, crystal-clear Adriatic waters, and affordable property prices compared to Western Europe, Croatia is quickly becoming a favorite destination for international property investors.

Why Croatia Is a Strong Short-Term Rental Market

Tourism is the backbone of the Croatian economy, and it’s still growing every year. From Dubrovnik’s medieval charm to Split’s vibrant waterfront and the countless idyllic islands in between, travelers are flocking here in record numbers.

For property owners, that means demand for rentals is high—especially along the coast during summer months. Platforms like Airbnb and Booking.com have made it easier than ever to market your property directly to international guests.

Average nightly rates: €100–250+ in coastal cities and island destinations during peak season
Season length: June through September are the strongest months, but shoulder seasons (spring and fall) are growing thanks to remote workers and digital nomads
Occupancy: Well-located properties often see 70–90% occupancy during the summer season

Dual Benefit: Vacation Home + Income Stream

One of the biggest perks of buying in Croatia is that your property can serve two purposes:

Personal use — Spend summers by the sea with your family and friends.
Rental income — When you’re not there, rent it out to tourists and let the property generate cash flow.

This makes Croatia especially attractive for families and remote investors who want both a personal lifestyle upgrade and a long-term investment.

What Type of Properties Perform Best?

Waterfront apartments — Always in high demand for short-term rentals.
Stone houses in old towns — Unique charm = higher rates.
Modern villas with pools — Premium market, strong ROI for investors.

Location matters, but so does presentation. Professional photos, guest-friendly amenities, and clear communication will set your listing apart.

Costs and Taxes to Keep in Mind

While rental income potential is strong, it’s important to understand costs:

Purchase fees: ~3–7% of the purchase price
Tourist tax: Owners who rent short-term need to register and pay local taxes
Property management: If you don’t live in Croatia, many investors hire local managers to handle guests and cleaning

Even with these expenses, ROI in popular coastal areas often ranges from 5–8% annually, with long-term appreciation potential on top.

Is Croatia Right for Your Investment Strategy?

Croatia is no longer just a hidden gem—it’s becoming a prime destination for property investment in Europe. If you’re looking for a balance of lifestyle and income, it’s hard to beat.

👉 Want to know the full breakdown of costs, taxes, and fees before you buy? Download my free guide and join the Breeza Abroad newsletter for insider insights on investing in Croatia.