Purchase, sale and rental of real estate

Subsidisation of housing loans for young people

Subsidisation of housing loans is a measure of assistance that provides subsidies to young people to pay part of a housing loan for the first five years of loan repayment

The measure has been implemented since 2017, 6 public calls were implemented, and pursuant to Amendments to the Act subsidisation of housing loans for young people has been ensured until 31 December 2023 for each calendar, i.e. budget year.
 
Applications for a new subsidisation round start as of 21 March 2022.

What is being subsidised?

  • a housing loan of up to a maximum of EUR 1,500 per square meter or up to a maximum loan amount of EUR 100,000 in equivalent value in HRK,
  • the loan repayment period shall not be less than 15 years,
  • the price of EUR 1,500 or the total loan amount of EUR 100,000 can be exceeded, but the difference is not subsidised,
  • the amount of subsidy depends on the development index of the locality where the property is purchased or built, ranging from 30 to 51 percent.

Who may apply for subsidy?

  • citizens with permanent residence in the territory of the Republic of Croatia not older than 45 years
  • whose creditworthiness has been verified, i.e. who meet the bank’s conditions for obtaining a housing loan,
  • who do not own an apartment or house and whose spouse or common-law spouse does not own an apartment or house or owns only one apartment or house that he/she is selling in order to purchase a larger apartment or house, or to construct a house for his/her own housing needs.

What documents need to be prepared?

For purchasing a house or apartment:
  • copy of the ID card
  • copy of the birth certificate for minor children
  • preliminary agreement or purchase agreement for the apartment or house for the purchase of which the loan is requested
  • copy of the land registry extract
  • copy of the official act permitting the use of the building in which the apartment to be purchased is located, or copy of the official act permitting the use of the house intended to be purchased
  • certificate of the Croatian Public Health Institute on the person’s entry in the Croatian register of persons with disability
  • statement certified by a notary public that the person does not own an apartment or house in conditions of usability with basic sanitary and technical living conditions, or that the person owns only one apartment or house in such conditions of usability that provide basic sanitary and technical living conditions, and which the person is selling in order to purchase a larger apartment or house for his/her own housing needs
  • statement by the spouse or common law spouse, life partner or informal life partner, certified by a notary public, that the person does not own another apartment or house in conditions of usability with basic sanitary and technical living conditions, or that the person owns only one apartment or house in such conditions of usability that provide basic sanitary and technical living conditions, and which the person is selling in order to purchase a larger apartment or house; and
  • statement on categorisation of the property according to the city or municipality development index.
For constructing or reconstructing a house:
  • copy of the ID card
  • copy of the birth certificate for minor children
  • copy of the land registry extract
  • copy of the official act permitting construction
  • copy of the works cost estimate prepared based on the main or detailed design, with resulting amount of the construction costs
  • certificate of the Croatian Public Health Institute on the person’s entry in the Croatian register of persons with disability
  • statement certified by a notary public that the person does not own an apartment or house in such conditions of usability with basic sanitary and technical living conditions, or that the person owns only one apartment or house in such conditions of usability that provide basic sanitary and technical living conditions, and which the person is selling in order to construct a larger house for his/her own housing needs
  • statement by the spouse or common law spouse, life partner or informal life partner, certified by a notary public, that the person does not own another apartment or house in such conditions of usability with basic sanitary and technical living conditions, or that the person owns only one apartment or house in such conditions of usability that provide basic sanitary and technical living conditions, and which the person is selling in order to construct a larger house; and
  • statement on categorisation of the property according to the city or municipality development index.

How to get a subsidised loan?

  1. Find a property/building plot for constructing a house, or you already have a house that needs to be completed
  2. Contact a bank for the property value appraisal and to obtain information on the required documentation for assessing your creditworthiness
  3. After the Agency for Transactions and Mediation in Immovable Properties (APN) has published a public call to apply for subsidies, submit your loan application to the bank
  4. When all documentation has been collected, the bank approves the loan and sends it to the APN
  5. If the APN approves your loan subsidy application, you will sign a housing loan agreement with the bank
  6. Disbursement of the loan amount
After getting information and collecting all required documents in a timely manner, you can solve your housing needs and by being granted a subsidy on the housing loan.

From implementation beginning of this measure, 22,169 subsidisation applications were received to date. New applications for additional subsidisation have been received on a daily basis for reason of childbirth. To date, 5,278 children were born or adopted, and thereby loan beneficiaries have realised the right to additional subsidisation for two years per child.