Why Istria?
Buying to let
Property ownership in Croatia
Property transaction costs
Banking
Map of Croatia

Why Istria?
• Prime tourist destination
Italians, Germans, Austrians and Russians have been spending their holidays in Croatia for years. In recent years, with media coverage has escalating dramatically, tourism has been growing by more than 15% per year. This benefits Croatia, but also many foreign property owners.

• Proximity to western Europe, easy access
Istria is easy to get to. A flight to Pula airport is less than three hours from Heathrow. A budget flight with Ryan Air to Trieste in Italy deposits you less than an hour from the Croatian border by car.

• European heritage
Istria is just across the Adriactic from Italy and has had centuries of interaction with western European countries. Hence, compared to countries such as Bulgaria or Romania, Croatia is culturally closer to western Europe - Istria particularly so.

• Growing infrastructure
Croatia is investing heavily in road networks, communication systems and public service infrastructure. Recent grants from the EU have helped. As a percentage Croatia's year on year growth of GDP is ahead of all countries in western Europe.

• Temperate climate
The mountainous interior of Croatia can get very cold, but Istria's Mediterranean climate means that it is generally mild. See climate.

• In the EU queue
Croatia has been granted the initial applicant status by the EU, and is now in the process of ensuring compliance. It is expected that Croatia will be admitted in 2007. Judging by the economic upturn in the stats for the latest 12 members of the club, this will be good news for anyone with an interest in Croatia.

• Good value - compare property values with Italy
Housing in Istrian has a lot in common with housing in Italy ('new Tuscany', etc). This makes sense as a lot of the housing in Istria was built by Italians. Istria shares the same weather, sun and sea. Looking at Italian prices indicates that Istrian housing stock is undervalued.

• Letting opportunities
Letting a property in one of the popular tourist areas can more than pay for the cost of the mortgage, and the tourist season is becoming longer each year.

• Capital growth prospects
Properties in good condition and locations are presently increasing in value at about 16% a year. With good quality renovation and decoration, some are achieving considerably more. There are few 'crazy' bargains with clean title, but with a considerably lower entry cost than in the UK, capital growth prospects are very good. Top

Buying to let

Flip through any travel magazine or newspaper supplement and look at the prices for a holiday in Croatia. There is a huge demand for holidays. Those who prefer not to take the ‘package’ route will be looking for accommodation. For a good flat in a prime spot you can expect to be booked for more than half of the year. You can charge more in the peak season (July and August) too. It is not uncommon to be able to completely finance your borrowings for the property from this income.

Of course there is more to letting than just having a nice place. You can appoint an agent to manage your property for you, or you can find a local resident to do it for you. Either way you need to be prepared for guests. You will need insurance, a cleaner and someone your guests can call in an emergency, at least.

It goes without saying that you need to view your property with the same critical eye you would use if you had just arrived, having paid in advance. Bear in mind that in the long term your best business will be repeat customers and their friends. Everything must be clean, tidy and in working order. Guests must be met and possibly helped with their bags. Preferably the person who meets your guests should also sort out payment of the tourist tax for them.

To promote your property it is best to pay to be included on a website dealing with the area you are in. If this is a Croatian site, expect to pay no more than €150 pa. for this. If your property description on this site is linked to your personal property website, so much the better. If you have questions or want advice about managing or promoting your property, or constructing a website, please contact us. Top

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