Croatia and OECD membership: new property ownership regime

The Republic of Croatia is in the final phase of joining the Organisation for Economic Co-operation and Development (OECD), an international organization aimed at promoting economic development and global trade. Becoming a member of the OECD brings a series of reforms in various areas, including legislation related to property ownership. A key focus is on the rights of citizens from other OECD member states regarding property purchases in Croatia.

Liberalization of the real estate market for OECD Citizens

JOne of the key requirements for OECD membership is the further liberalization of the economic and legal system, including easier access to the real estate market for foreign nationals. Currently, under existing laws, European Union citizens can acquire property in Croatia without restrictions, while third-country nationals (non-EU citizens) can only do so based on the principle of reciprocity (i.e., if Croatian citizens have the same rights in their country).

Following Croatia’s formal entry into the OECD, legislative changes are expected to allow citizens of all OECD member states to acquire property under the same conditions currently reserved for EU citizens.

This means that citizens of Australia, Canada, Chile, Colombia, Costa Rica, Israel, Japan, Korea, Mexico, New Zealand, Switzerland, Turkey, and the United States will be able to freely purchase real estate in Croatia without additional administrative procedures or special approvals.

Impact on the legal framework and real estate market

The expected changes to the Law on ownership and other real rights will bring:

• A simplified property acquisition process for OECD citizens – no longer requiring approvals from the Ministry of Justice and Administration or reciprocity checks.
• Increased demand in the real estate market – the entry of new investors from OECD countries may lead to rising property prices, particularly in high-demand locations such as the coastline and urban centers.
• Greater legal certainty for foreign buyers – aligning Croatian legislation with OECD standards will enhance predictability and transparency in the legal system.

Croatia’s planned integration into the OECD is scheduled for 2026. Upon joining, the new provisions of the Law on ownership and other real rights will come into effect, allowing citizens of OECD member states to acquire property in Croatia under the same conditions as EU citizens – without additional approvals.