Croatia
 Croatia
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Capital
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Zagreb
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Population
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4,489,409
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Area
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56,542 sq km
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Language
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Croatian, other languages
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Currency
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Croatia, Kuna (HRK)
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1.000000HRK (HRK) = 0.184322$ (USD)
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In the 1950s Croatia was the prime location for Europe’s rich and powerful holidaymakers. Then in the 1990s, Croatia (Yugoslavia) was in the midst of a brutal civil war where Croatia finally gained its independence in 1990 and then spent another 6-years in a boundary war with neighboring Serbia. Many people believe the beauty of the 1,000-island Adriatic Coast is what enticed Serbia into a war with Croatia. Serbia wanted it. And now you too can have a piece of land filled with beauty and history, as Mediterranean living is no longer out of your budget.
Croatia is still in the pre-EU stage, membership is expected in 2010, so this is a great time to take advantage of the low prices in Kunas before it becomes more expensive with Euros and the European Union status. Besides the bright blue water, sandy coastline and castle and villa-lined cobblestone streets there is an additional bonus to buying in Croatia. Non-resident mortgages are available at the current rate of 7%, making living like rich and famous of the 1950s a lot more affordable.
Top 3 Places to Live and Invest
There are beautiful Mediterranean houses for sale along the Dalmatian Coast for just a fraction of the price of houses in Italy or Greece. Islands dot the mountainous coastline of Croatia, making it a prime spot for Italian tourists and vacationing Croats alike. Brac is the largest island in the Dalmatian group of islands and the third largest in the Adriatic Sea. New luxury 2-bedroom apartments in the city of Sutivan go for between $220,000-235,000 (150,000-160,00 euros) and 7-bedroom villas are on offer at just under a million dollars (650,000 Euros).
Under the UNESCO reconstruction plan Dubrovnik has been restored to its previous splendor after being bombed for more than seven months by Yugoslavia in the early 1990s. This World Heritage Site has become a hot spot for tourism where luxury cruise ships dock in the port driving the average cost of apartments up to $517 a square foot. Due to city regulations and the small size of the city, space is very limited and nothing new is being built. So get into this market early and watch your investment grow 10-20% as it has since 2003.
For the past few years Croatia and more specifically the Istrian Peninsula has been called “The New Tuscany,” for its stone houses, fertile land and leafy awnings growing on local restaurants. With its seaside towns, Tuscan charm and nice weather it’s easy to see why the Istrian Peninsula gets a third of the annual tourists in Croatia. The high number of tourists has driven up prices in the Peninsula and prices are much higher than in Dubrovnik. A small stone house in the ocean side town of Pula needing various amounts of repairs starts at $150,000 (most prices are listed in Euros) and new apartments start at just over $250 per square foot.
Health and Senior Benefits
Once Croatia gets full membership of the European Union, Croatian citizens and residents should get the same health care benefits as other EU citizens. Until then, most Croatians that work are enrolled in the state run health care system with government subsidized medical insurance. As an expat you will have to get private insurance or permanent residency (which takes five years to get). The health care is on par with most other Eastern European countries, but still below American standards although Croatia does offer fairly modern hospitals and medical treatments in most of the larger cities. There is free basic emergency first aid for all foreign visitors. Prescription medication can be expensive and difficult to find so it’s recommended to keep a 1-3 month supply on hand when possible.
Senior benefits are not many, but will help a bit financially. Currently, Croatia does not tax pensions from abroad; interest payments on loans, investments, securities, deposits with financial institutions and other similar types of income; inheritance and gifts in first line of succession (otherwise 5% flat tax) and capital gains from financial assets or property if you lived there for at least three years. Croatia has heavy taxes but most of it shouldn’t affect expats without a local source of income, but as tax laws frequently change, be sure to look into it before moving. Customs regulations allows foreigners to import any goods they have owned for over 12 months, duty free as long as you have the proper paper work showing your passport, certificate of residence and inventory of your things.
Safety and Infrastructure
Croatia has a very low crime rate compared to the UK or USA. The occasional petty theft will occur but violent crime is rare, the rate of theft does go up during the tourist season along the Adriatic Coast. In Zagreb, the biggest problem is not crime against visitors but armed robberies of banks and armored vehicles. Organized crime is an issue in Croatia although as of 2009, there have not been any crimes reported against foreigners. In the non-touristy parts of Croatia there is still the possibility of unexploded land mines, but most affected areas have clearly marked signs. There are still some ethnic tensions left over from the war in the 1990s, but only in certain areas and the hostility is not directed at Americans.
Croatian infrastructure is generally good. Buses and trams are safe and efficient, as are taxis but with a small number of reports in fare abuse. Croatian roads are usually paved and in good condition. The telecommunications services in Croatia have steadily improved since the 1990s, 40 out of 100 people own a land line and the number of cell phone users exceeds the population. Internet is widely available in the larger cities but still less than half the population are registered Internet users. International calls are expensive, but with the increase in the availability of Skype that necessity has all but vanished.
Culture and People
Croatia is one of the six regions of the former Yugoslavia; yet Croats tend to think of themselves as a European country rather than a Balkan state. Croats make up 78% of the population with Serbs accounting for 12% and the remaining 10% being made up of Bosnians, Hungarians and Slovenes. Croatia was under control of other powers from the 12th century until 1991, so the search for a national identity since independence has been a difficult one. Religion has become a huge part of national identity and since the large majority of Croats are Catholic, the Church now plays a significant role in Croat life since the end of the war in 1995.
Friendly and hospitable, Croats greet their friends with kisses on the check, handshakes or hugs. Whether it is food or drinks, something is offered immediately when you walk into a Croat’s home and be aware that it is considered impolite to refuse. A typical past time is socializing and relaxing in some of the many cafes and discos that line the streets. Fashion, American music, food and fun are some of the things that Croats like and with these friendly, social people, you are sure to have a good time.
Average Monthly Budget for a Couple in Zagreb, Croatia
Rent for a 2-bedroom apartment in a nice part of town: $900
Daily maid service (Monday-Friday, 8 hours, cook and clean): N/A
ADSL Internet: $50
Telephone (1 landline, 2 cell phones): $65
Cable TV: $25
Water: $18.40
Electricity: $27.60
Gas: $11
Private Health Insurance: $300
Food: $320
Transportation (2 taxi rides a day, averaging $5 a ride): $300
Total: $2017 per month
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