Buying a Holiday Apartment
Holiday apartments to buy as an investment or a personal getaway.
Buying an apartment is most often motivated by the desire for a personal holiday home or an investment property to rent out to tourists. Hermes Nekretnine helps clients identify apartments with the best ratio of price, location and rental potential, whether you plan to use the apartment exclusively for yourself or rent it out part of the year to cover maintenance costs.
Apartments on the coast or in tourist-attractive locations appeal to two different types of buyers. The first want purely personal use, a place to spend summers with family, away from everyday stress. The second group sees the apartment primarily as an investment, expecting income from short-term tourist rental to cover maintenance costs and, in the long run, deliver a realistic return on invested capital. These two motivations often overlap: the apartment is used for personal holidays outside the season and rented out during the summer months when demand is highest.
Larger tourist centres generally offer a longer season and more diverse demand, which allows for more stable rental income outside the summer months. Smaller coastal towns usually have more pronounced seasonality, with most income concentrated in July and August, but often with a lower starting apartment price and less competition among landlords. The choice between these two approaches depends on whether you're looking for a more stable but lower average yield or higher seasonal income with greater uncertainty outside the season. Before buying, it's also worth checking the guest profile that typically visits the chosen destination, since this affects expectations regarding the apartment's furnishing standard. Families with children look for more space and proximity to child-friendly amenities, while younger couples and groups of friends often choose smaller apartments closer to nightlife. Furnishing the apartment to match the target guest profile can increase occupancy and average nightly rate compared to a generic approach to decor.
Before buying, we recommend making a realistic estimate of expected rental income, taking into account the destination's seasonality, comparable rental prices for similar units, and the annual occupancy rate typical for that location.
A realistic profitability assessment should include not just gross rental income but also all associated costs: management fees, cleaning between guests, utilities, tourist tax, and annual maintenance, so you get a true net picture before deciding on a purchase price.
If you don't live near the property, remote management through a local agency or property manager is common, handling everything from guest communication to cleaning and key handover. It's worth budgeting for this cost from the start, as it typically represents a meaningful share of gross rental income.
Document review. We check the title deed, co-ownership terms and any rental restrictions. Offer and negotiation. We negotiate the price taking seasonality and the property's condition into account. Preliminary contract, financing and land registry entry. Standard steps follow: the preliminary contract, financing if needed, the main contract with a notary, and entry of ownership in the land registry. Preparing for rental. If you plan to rent out the apartment, it needs to be furnished, listed, and, if needed, booking management arranged. The apartment's legal status sometimes includes membership in a tourist complex with specific rules for using the pool, parking or shared areas, as well as a mandatory contribution toward maintaining the complex regardless of whether you use the apartment yourself or rent it out. It's important to check these conditions precisely before buying, since they can significantly affect the overall cost of ownership.
Banks sometimes treat loans for properties intended for rental differently than loans for a primary residence, which can mean a somewhat higher own contribution requirement. It's worth clarifying with your bank in advance how they view the intended use of the property.
Before signing, check for any restrictions on tourist rental within the building or complex, confirm the co-ownership status is properly registered, and verify that all shared costs and obligations are clearly defined in the co-ownership agreement.
New-build apartments typically come with modern amenities, lower initial maintenance costs and, often, developer-arranged rental management, while existing apartments may offer a lower price and an established rental track record you can review before buying. The most common model is a mix of both personal use and rental, where the owner uses the apartment outside the season and rents it out during the months of highest tourist interest.
How does buying an apartment differ from buying an apartment in Zagreb? The key difference lies in analysing rental potential and seasonality, while the legal purchase process is largely the same. If you're also interested in a city residence, take a look at our guide to buying an apartment in Zagreb. Do I need to pay tax in the destination where the apartment is located if I'm from another city? Property transfer tax and rental income tax are tied to the property's location and your tax residency, and we recommend consulting an accountant for an exact calculation based on your situation. How do I find a reliable apartment manager? We recommend looking for managers with proven experience in that specific destination and a clear fee structure, and checking references from existing clients before signing a management agreement.
We analyse the rental potential of each property, help you understand the true costs of ownership and management, and guide you through every step of the purchase, from document checks to the final handover, so you can make a confident, well-informed decision whether you're buying a personal holiday home or an investment property.