Vacant Property in Croatia: Annual Costs, Taxes, and Options for Owners

More and more property owners in Croatia today are facing a simple question: how much does an empty property actually cost me, and what can I do with it? If a property sits vacant, it generates expenses. In 2025, a new property tax is being introduced, which has further increased the level of concern among owners.

Below, we will clearly explain why 2025 is important, how much you will pay annually if your property does not generate income, and what options exist for unused properties.

Why Vacant Properties Cost You Money in Croatia

As of January 1, 2025, Croatia is introducing a new property tax that replaces the previous tax on holiday homes. This change does not affect only those who own a second home for vacation, but applies to all properties that are not permanently occupied or rented out for more than 10 months per year.

Understanding Property Taxes for Vacant Properties

Unlike the previous system, this tax is mandatory for all local government units to implement and primarily applies to properties that are not used for permanent residence or long-term rental.

Properties where the owner has registered permanent residence or those that are rented out long-term are generally exempt from the tax, while vacant apartments and houses are most often subject to taxation.

The goal of this change is to encourage owners to put their properties to use – either through selling, long-term renting, or actively using them – and to reduce the number of vacant homes on the market.

How much does an empty property cost per year?

The cost of a vacant property in Croatia largely depends on the new property tax, which is paid annually based on the size of the property. Cities and municipalities determine the exact rate, but the law sets a range between €0.60 and €8.00 per m² per year. In tourist and high-demand areas, the tax is often closer to the upper limit, while in smaller towns and rural areas it is usually lower.

It is important to note that this is only the base tax. Owners of vacant properties also pay communal fees, minimal utility costs, and occasional maintenance, which means the total annual cost can be significantly higher.

What are the total costs of owning an unused property in Croatia?

Many owners – especially those who live abroad or have inherited a property – wonder what to do with a vacant property in Croatia. Even if the property is not being used, ownership still comes with costs, and these expenses can increase over time. That is why it is important to understand all the costs associated with owning an unused property.

You can read more about all taxes and fees involved in buying property in Croatia in our detailed guide.

Real estate tax – amounts by location

Since cities and municipalities set the tax rate, the amount can vary significantly depending on the location. As shown below, based on data for 2025, the tax can be much higher in popular tourist destinations. Here’s an overview of the property tax rates in key cities for 2025:

Continental and smaller coastal towns:

• Zadar: €0.60 per m²
• Split: €1.99 per m²

Tourist destinations:

• Korčula: €4.00 per m²
• Šibenik: €5.00 per m²

Most popular coastal and island destinations:

• Rovinj: €6.25 per m²
• Bol (Brač Island): €7.50 per m²
• Vis: €8.00 per m²
• Umag: €8.00 per m²

Dubrovnik has a more complex system, where the tax varies depending on the city zone:

• Zone 1 (Old Town): €5.00 per m²
• Zone 2: €4.00 per m²
• Zone 3: €3.00 per m²
• Zone 4: €2.00 per m²
• Zone 5 (peripheral areas): €0.60 per m²

Practical example: A 60 m² apartment in central Split will pay an annual tax of approximately €119 (60 m² × €1.99), while the same-sized apartment in Vis costs €480 (60 m² × €8.00) – four times higher just because of the location.

Other Annual Costs of Owning an Empty Property

In addition to property tax, owners are also required to pay a communal fee, which funds the maintenance of infrastructure such as street lighting, roads, and municipal services.

There are also other obligations, such as minimum utility costs for water, electricity, or waste collection. Even if the property is not in use, these costs often remain active.

A vacant property requires at least basic maintenance to prevent long-term damage. Issues such as dampness, neglected installations, or roof damage can significantly reduce the property’s value over time.

What Are Your Options if You Don’t Live in the Property

Many owners consider options such as renting or selling their property to reduce costs and put the property to use. There are three main options that can help you minimize expenses and unlock your property’s potential:

Option 1 – Short-term or Long-term Rental

The first way to utilize a vacant property is renting, and owners generally have two main approaches:

• Short-term rental involves tourist, seasonal, or occasional leasing. This option can generate higher income during peak season but requires active management and constant communication with guests.
• Long-term rental provides a stable income through leases of at least 10 months per year. This option ensures predictable, consistent revenue and exempts the owner from the vacant property tax.

Choosing between short-term and long-term rental depends on your goals and the property’s location. Short-term rentals are often more profitable in tourist-attractive areas, where seasonal income can far exceed long-term rental income. Long-term rentals are more suitable for continental or smaller urban areas, where demand for long-term housing ensures stable income without additional effort.

For more details on which option generates higher profit and which is more suitable for your property, check our guide on whether short-term or long-term rental is more profitable.

Inexperienced owners often make mistakes such as incorrect pricing, inadequate advertising, or neglecting legal and safety aspects. To ensure your rental is as successful as possible, see our article on common rental mistakes.

Option 2 – Selling the Property

If you do not want to manage the property or costs exceed expected revenue, selling can be the most practical choice. With the recent rise in property prices, many owners have realized significant capital gains in the past few years.

To avoid common pitfalls during the sales process, it is advisable to work with an experienced real estate agency that can handle the process professionally and efficiently. Read more about the most frequent mistakes in property sales in our article on real estate selling errors.

Option 3 – Keeping the Property with Minimal Costs

Some owners choose to keep the property vacant and pay only mandatory costs (tax, communal fees, and minimal maintenance). This can be a viable option if you plan to use the property in the future or if you expect further appreciation in its value.

How to sell or rent property in Croatia when you live abroad

Owning a property in Croatia while living abroad can be challenging if you try to manage everything on your own. This is where the advantage of working with a professional and established real estate agency comes in.

With such a service, you can manage your property from abroad without having to physically travel to Croatia. Everything is handled professionally, transparently, and efficiently, saving you both time and energy.

How Broker.hr Can Help You Manage Your Property Remotely

Broker offers a professional service where we handle all steps on your behalf:

• Property valuation based on current market conditions
• Professional marketing and presentation, including photography, virtual tours, listings on domestic and international platforms, banners, and newsletters
• Communication with potential buyers or tenants and filtering of serious offers
• Organization of negotiations and contracts with legal and administrative support
• Complete administration, from documentation to transaction completion
  

If you want your property to start generating income or simply want to benefit from expert assistance, contact us for a free property evaluation. We can help you make an informed decision without any obligation.