From Vienna to Pelješac: buying property as an Austrian

Austrians know the Croatian coast, but mostly the northern half. Istria and Kvarner are closer, better served, and correspondingly more built up and more expensive. Pelješac lies about four hours further south and answers a different question: what if you want the same sea without the density.

Getting here, and why it changed

From Vienna it is roughly 850 to 900 kilometres depending on the route, from Graz about 750, from Klagenfurt less again. Realistically nine to ten hours of driving, so a long day rather than a two-day trip.

Two things changed that drive. Croatia joined the Schengen area on 1 January 2023, so there is no border control between Austria, Slovenia and Croatia. And since 2022 the Pelješac Bridge has bypassed the Neum corridor in Bosnia and Herzegovina; the route to southern Dalmatia used to cross a non-EU border twice, with long waits in season.

By air: Dubrovnik and Split, both with seasonal connections from Vienna. Dubrovnik to Orebić is about two hours, Split about three. Out of season the connections thin out, which argues for driving.

Why drive past Istria

Istria is some five hours closer and far better known, which shows in the prices. Pelješac costs less for the same metre by the sea, is much less built up, and has something Istria does not offer in this form: wine. Dingač and Postup are two of the most respected positions in Croatia, on slopes that fall straight into the water.

The price of that is infrastructure. Outside Orebić there are barely any shops, no school and no doctor, and in winter many villages are close to empty. If you want quiet, you will find it here more reliably than in Istria. If you want activity, stay north.

May Austrians buy here

Yes, on the same terms as Croatian citizens. Since Croatia joined the EU in 2013, citizens of member states buy without ministry consent and without a company, in their own name, and are entered in the land registry.

One exception stays practically relevant: agricultural land may not be built on, whoever owns it. If a plot by the sea looks unusually cheap, that is generally why. In detail in the guide to building versus agricultural land.

Money: no currency risk, but little lending

Here an Austrian buyer is better placed than almost any other foreign one. Croatia has used the euro since 1 January 2023, so there is no conversion, no exchange rate and no currency risk: the price in the listing is the price in your own currency.

Financing is the harder part. Austrian banks as a rule do not lend against property abroad, and Croatian banks are reluctant to lend to non-residents. In practice people pay cash or borrow against something in Austria. The costs on top of the price are itemised in the guide to purchase costs.

Tax between Austria and Croatia

The two states have a double taxation treaty. The general rule for real property is that income is taxed where the property sits, so in Croatia. How the Austrian side is settled depends on your residency and other income, so speak to an Austrian tax adviser before buying with letting in mind.

Letting, realistically

The season on Pelješac is shorter than in Dubrovnik or Istria: July and August dependable, June and September good, the rest quiet. Letting here typically covers the cost of holding a house you want anyway and rarely returns the investment. The full arithmetic is in the guide to holiday letting returns.

What to check on the ground

• See the property in person at least once, especially the access and the slope.
• Ask for the land registry extract and check ownership and encumbrances.
• On a house, ask about the occupancy permit, not only the building permit.
• Establish whether the road is public or an easement across someone else’s parcel.
• Check which basis the floor area was stated on.
• Ask about winter: which shops open, how far the doctor is, who lives here all year.

Next step

Tell us what you are looking for and how often you would come; the second often matters more than the first. We will tell you what we know about the village and the property, including when we would advise against it. The current portfolio is under properties.