Zadar

Investment summary

The baseline investment case rests on a combination of solid short-term rental demand — a median annual occupancy of around 60–65% and an average daily rate of approximately €103, supported by 15.4 million overnight stays in Zadar County in 2024 — and consistent capital appreciation running at roughly 10% per year over recent years and 26% over three years. Croatian property transfer tax of 3% and a flat 12% rental income tax keep holding costs transparent; there is no wealth tax, and CGT is eliminated after a two-year hold. The upside case is underpinned by a structural shortfall of quality residential supply relative to demand, the continued expansion of Zadar Airport (1.58 million passengers in 2024, up 30% year-on-year), and growing shoulder-season demand driven by digital nomad and cultural tourism trends. Investors who combine well-located old-town or waterfront assets with professional property management can target gross STR yields in the 8–12% range during peak years, while those seeking lower operational complexity may prefer a buy-and-hold strategy targeting the market's demonstrated long-run capital growth.