A total of 472 requests received for tax refunds to young people purchasing or building first real estate, first payouts expected soon

By June 25, 2025, the Agency for Transactions and Mediation in Immovable Properties (APN) received a total of 472 requests for tax refunds when purchasing or building one’s first residential real estate, following the entry into force of the Ordinance on subsidies for the acquisition of first residential real estate.

Of the overall number of requests, 129 requests have been processed - 65 complete requests approved, 57 requests require additional documentation within 15 days, and 7 requests will be declined because they do not fulfil legal requirements. The first payouts are expected at the beginning of July.

The so far approved subsidies amount to 605,166.24 euro. The average amount of a subsidy based on the 65 approved requests is 15,850 euro for paid value added tax (VAT) and 3,450 euro for real estate transfer tax (RETT).
 
Informative calculators and average real estate prices

Due to significant differences in prices not only among counties, but within the cities themselves, the Ministry has created two calculators for calculating a potential subsidy amount - one for VAT refund (for new construction), and one for RETT refund (for older construction).

The Ministry has also published average prices of real estate by square meter for all counties and cities (for the City of Zagreb and by cadastral municipalities), taking into account the results of the study conducted by the Institute of Economics based on the sale/purchase contracts in 2024 registered by Tax Administration. For instance, for an apartment in central Zagreb, the average price is 3,051 euro per square meter, while the maximum acceptable price for refund is 4,575 euro per square meter, i.e. up to 50% above average. Average prices for each county are available here.

The law also prescribes maximum apartment and house sizes acceptable in order to obtain a refund, with a possible deviation of 50% depending on the number of household members. For instance, the prescribed size for a single person is 50 m², with a 75 m² accepted maximum. For houses, the size and accepted deviation are higher - a single person can purchase a house from 75 m² to a maximum of 112.5 m². In both cases, the refund will be realised according to the size prescribed by law, in other words, 50 m² for an apartment and 75 m² for a house. A table showing the prescribed sizes is available here.

Let us recall, on June 5, 2025 the Ministry of Physical Planning, Construction and State Assets adopted the Ordinance on subsidies for the acquisition of first residential real estate, based on the amendments to the Act on State-Subsidised Housing Construction. This legal regulation is developed within the framework of the National Housing Policy Plan of the Republic of Croatia until 2030, the first and umbrella strategic document on housing in Croatia, whose purpose is to provide Croatian citizens, especially young people and young families, with affordable housing.

The Ordinance prescribes the requirements, criteria and procedures of subsidy payment for the acquisition of first residential real estate for the purpose of applicant’s own dwelling, and it represents a permanent measure because it does not stipulate an end date for submitting the requests. The refund is possible for real estate purchased or built since January 1, 2025, and the request can be submitted within 24 months of the date of concluding a sale/purchase contract.

Submitting the request and the documentation required

The request for subsidy payment is submitted to the Agency for Transactions and Mediation in Immovable Properties (APN), Savska cesta 41, 10000 Zagreb, using a prescribed form and documentation which proves the fulfilment of the requirements to obtain the subsidy payment. If other immediate family members are also being listed as owners of the real estate, only one joint request is submitted, with documents pertaining to all the persons involved.  

The requests are approved based on the order in which complete requests have been received. APN issues a decision on the right to obtain the subsidy and keeps records on submitted requests, issued decisions and paid subsidies, according to the valid Law and Ordinance, and the Ministry makes the payment.

The request for a subsidy when purchasing first real estate should also include: a copy of an ID card, a sale/purchase contract concluded after January 1, 2025, an extract from the land registry or the book of deposited contracts, a confirmation on residence registration for all members, proof of paid tax or VAT and bank account number for payment.

The request for a subsidy when building a family house should include: a copy of an ID card, a permit of occupancy which has become valid after January 1, 2025, a construction contract  based on which VAT was paid, invoices for the design and supervision, an extract from the land registry, proof of residence and proof of sale of previous real estate if the applicant had real estate which was not considered appropriate.

Requirements for obtaining the subsidy

These measures apply to people who resolve their housing situation for the first time, which means the applicant cannot own, co-own or have joint ownership now or in the past (prior to January 1, 2025) over other real estate intended for housing either in Croatia or abroad.

There is one exception when the applicant or their immediate family members have or had, either in Croatia or abroad, real estate intended for housing which is not considered appropriate (it lacks necessary infrastructure, does not fulfil sanitary-technical requirements for healthy housing, is smaller than the prescribed size per person, etc.) and which the applicant has sold or will sell within 24 months of purchasing residential real estate in order to purchase a larger apartment or house, or to build a house, all for the purpose of applicant’s own dwelling.

The requirements mentioned which need to be fulfilled in order to obtain the tax refund when purchasing an apartment or a family house are as follows:

• Croatian citizenship,
• sale/purchase contract concluded after January 1, 2025,
• applicant under the age of 45 at the moment of submitting the request,
• residence registered at the address of the real estate for which the refund is requested and where the applicant truly resides (the same applies to immediate family members if they are included in the request),
• confirmation of paid real estate transfer tax or invoice which states VAT, issued after January 1, 2025

In order to obtain the tax refund when building a family house, the requirements are as follows:

• Croatian citizenship,
• applicant under the age of 45 at the moment of submitting the request,
• residence registered at the address of the house, where the applicant resides, together with family members included in the request,
• valid permit of occupancy issued after January 1, 2025,
• construction contract based on which the invoice or the statement is issued, certified by a supervising engineer, and based on which VAT is paid,
• invoices for the design and supervision paid, also with VAT included.

If the beneficiary of the subsidy disposes of or rents the real estate, deregisters residence or does not reside in the real estate within the period of five years since obtaining payment, they are obliged to return the subsidy to the Ministry in its entirety.

Additional information on this subject is available at the Ministry’s website, here, while a list of frequently asked questions and answers is available at APN and the Ministry’s websites.
 

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