Croatia has been one of the most popular tourist destinations in Europe for many years. Its picturesque Adriatic coast, over a thousand islands, excellent climate, and well-developed infrastructure attract millions of tourists every year. For investors, this means one thing: the enormous potential of the short-term rental market. Therefore, in today’s article, we will attempt to answer the question: How much can you earn renting real estate in Croatia?
Following Croatia’s accession to the Schengen Area and adoption of the euro, interest from foreign investors has increased even further. More and more people from Poland are choosing to purchase apartments, houses, or plots of land with the intention of renting them out and increasing their property value.
But is the investment really worthwhile? How much can you earn renting a property in Croatia? The answer depends primarily on the type of property, its location, the standard of finishing, and the rental method.
It’s worth remembering that short-term rentals are most profitable during the tourist season, while properties located in larger cities offer stable income year-round. Average gross yields on apartments in Croatia are around 4-5% annually, but well-managed holiday apartments in attractive locations can achieve significantly higher returns. [1]
How much can you earn renting an apartment in Croatia?
Apartments are the most popular form of investment for those just starting out in the Croatian real estate market. This is due to the relatively lower purchase costs and the ease of renting them out.
The most popular properties are those located in:
Example investment
Buying an apartment:
- Purchase price: €220,000
- Area: 55 m²
- Location: near Split
Short-term rental:
- Average price per night: €120–180
- High season: approximately 90 days
- Mid season: approximately 70 days
Annual income may amount to:
€18,000–28,000
After deducting management costs, taxes, cleaning, and maintenance, the owner can achieve a net profit of:
€12,000–20,000 per year.
If the apartment is located in Zagreb and is rented long-term, monthly rents often range from around €700 to over €1,000, depending on the location and standard. [2]
How much can you earn renting a house?
Vacation homes are particularly popular with families and larger groups.
The most popular properties include:
- swimming pool,
- garden,
- terrace,
- sea view,
- private parking.
Example:
180 m² house
Purchase price:
€600,000
Average rental price:
- Off-season: €250 per night
- High season: €600–900 per night
With an occupancy rate of approximately 150 days per year, the owner can achieve:
€60,000–95,000 in income.
After deducting the costs of pool and garden maintenance, technical services, marketing, and taxes, the remaining figure is:
€35,000–60,000 net profit per year.
Luxury villas are currently among the most profitable segments of the vacation rental market.
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How much can you earn on an investment plot?
At first glance, the property doesn’t seem to generate rental income. However, in practice, there are several ways to generate profits.
Most often, investors:
- they build apartments,
- construct vacation homes,
- erect mobile homes,
- create glamping sites,
- lease land for tourism purposes.
Example
Purchase of land:
€180,000
Construction of four apartments:
approximately €550,000
Total investment value:
€730,000
The rental income from the four apartments could be:
€80,000–120,000 per year.
Furthermore, the value of attractively located land on the Adriatic Sea is steadily increasing, allowing investors to benefit from the property’s increased value.
How much can you earn by renting a hotel?
This solution is intended primarily for investors with large capital.
Sample hotel:
- 25 rooms
- restaurant
- swimming pool
- parking
- close to the beach
Purchase price:
€3–5 million
Average room rate:
€160–280 per night
With an average occupancy rate of approximately 60–70%, annual revenues can exceed:
€1.2–2.5 million.
After factoring in employee salaries, marketing, energy, service, and taxes, operating profits can be:
€250,000–700,000 per year, although actual results depend on the property’s standard, location, and management.
What influences profits?
Not every property will generate the same income. The following factors have the greatest impact on profitability:
- location,
- distance from the sea,
- standard of finishing,
- number of beds,
- swimming pool,
- parking,
- sea view,
- length of the tourist season,
- guest reviews,
- professional property management.
A well-prepared offer can increase the number of reservations by up to several dozen percent.
How much can you earn renting real estate in Croatia and is it worth it?
Despite rising property prices, Croatia remains one of the most attractive investment markets in Southern Europe. A strong tourism sector, growing numbers of foreign visitors, and a limited supply of properties in prime locations contribute to sustained high rental demand.
The average yield on apartments nationwide is around 4–5% gross, but holiday apartments in prime locations often achieve significantly higher yields, especially with effective short-term rental management. [3]
Conclusions
Buying real estate in Croatia can be not only a way to secure capital but also a source of regular income. Apartments offer the lowest entry barrier, allowing for stable rental income. Seaside apartments generate higher profits thanks to seasonal tourism, while luxury homes and villas are among the most profitable investments. Investment plots allow for the implementation of your own development projects, and hotels—though requiring the most capital—offer the potential for generating the highest revenues.
The key to success is choosing the right location, proper property management, and a long-term investment approach. A well-planned purchase can generate attractive income for many years, while simultaneously increasing the value of your property.
Sources:
[1] – Croatia’s Residential Property Market Analysis 2025
[2] – Gross rental yields in Croatia: Zagreb and 3 other cities
[3] – Croatia Rental Yields: City-by-City Performance
