Croatia returns nearly 37 million euros to young home buyers

Croatia has given almost 37 million euros to young people since last year to help with the purchase or construction of their first homes. As of September 11th, around 7,500 people applied for this aid, and officials approved approximately two-thirds of the applications, 4,881 in total.

The Croatian government introduced the measure as part of a national housing plan intended to improve housing accessibility.

The program refunds taxes paid on the purchase of existing homes or half of the value-added tax on new construction. Support amounts are limited by property size and price. Young adults under 45 years old are eligible for the program, which applies to properties bought or built after January 1, 2025. The State Agency for Legal Transactions and Real Estate Mediation received 7,479 applications and denied 1,101, mostly due to applicants failing to meet legal requirements or withdrawing their requests.

Reasons for denial included property price or size exceeding limits, contracts signed before the start date, applicant age, or prior property ownership. Of the 37 million euros distributed, about 26.2 million euros covered value-added tax refunds, and 10.7 million euros covered property transfer tax refunds. The average family received around 7,574 euros in assistance, with most approved applications coming from Zagreb and the fewest from the Lika-Senj County.

The average applicant was 32 years old and lived in a two-person household.