Zagreb - The Croatian Parliament on Friday passed the Law on State-Subsidised Housing, through which the government aims, among other things, to support first home buyers under the age of 45 who will receive a refund of 50% of VAT or the full amount of real estate transfer tax.
The maximum selling price of POS (subsidised housing) flats will be increased from €1,792.50 per square metre to €1,912, in order to align with the average market selling price in 2024.
Although it was initially proposed that the right to receive the housing subsidy would not apply if the agreed purchase price of the property was 30% higher than the average price per square metre defined by this legislation, or if the usable area exceeded the legally prescribed size by 30%, an amendment submitted by the HDZ has increased this threshold to 50% in both cases.
Additionally, recipients of the subsidy will be required to repay it if, within five years, they sell or rent out the property, or change their registered residence and cease to use it.
Affordable rental programme for those spending over 30% of their monthly income on housing
One of the key measures is the launch of an affordable rental programme, aimed at people who spend more than 30% of their monthly income on housing. Under this scheme, compensation will be offered to owners of residential properties that have been vacant for more than two years.
The Croatian Real Estate Agency (APN) will acquire properties through public calls from the state, local governments, as well as private and legal persons. These properties will be rented out for a minimum of three years, with the possibility of extension up to a maximum of ten years.
The law was passed with 76 MPs being in favour, while 46 opposition members abstained from the vote, and nine voted against.