Subsidisation requirements and subsidy amount
Subsidisation conditions are regulated by the Act on Housing Loan Subsidisation (Official Gazette 65/17 and 61/18) and the Instruction on the work of the Agency for Transactions and Mediation in Immovable Properties (APN) in Implementing the Act on Housing Loan Subsidies (Official Gazette 76/17), and young people will again be able to apply for subsidised housing loans in autumn 2019, as well as in 2020.
Applications for housing loan subsidisation can be submitted by citizens with residence in the territory of the Republic of Croatia, who fulfil the requirements for housing loan approval as established by the lending institution (bank), who are not older than 45 years, and who, or whose spouse, common law partner, formal or informal living partner respectively, are not owners of an apartment or house, or who are owners of only one apartment or house that is being sold for the purpose of buying a bigger apartment or house, or for the purpose of building a house for their own housing needs.
Loan subsidisation is approved for the purchase of an apartment or house, or for the construction of a house up to a maximum EUR 1 500 per square meter in HRK equivalent, according to the medium foreign currency exchange rate of the Croatian National Bank, or up to a maximum loan amount of EUR 100 000 in HRK equivalent, according to the medium foreign currency exchange rate of the Croatian National Bank on the day of loan disbursement, with a loan repayment period that shall not be shorter than 15 years. The price of EUR 1 500 per square meter, or the total loan amount of EUR 100 000 may be also higher, however in such a case the difference shall not be subsidised.
The subsidy amount depends on the development index of the locality in which the property is purchased or built and varies from 30 to 51%. Pursuant to the Decision on the classification of local and regional self-government units according to the development degree, Official Gazette 132/17, 8 groups have been defined in which a city or municipality has been classified according to its development index.