Croatia is rapidly emerging as one of the most popular retirement destinations in all of Europe. With its abundant sunshine, comparatively low real estate costs, and its renowned Adriatic coastline, an increasing number of foreigners have chosen to make it their second home. Although property prices are rising quickly, it is still far less expensive than Italy, France or Spain. The unhurried pace of life, relatively low overall cost of living and convenient access to the rest of Europe have all contributed to Croatia's reputation as an idyllic spot for those on a fixed retirement income.

Croatia is poised to become a member state of the European Union in 2007 or 2008, and many foreign investors believe that property values will increase dramatically once that occurs.

There is an increasing number of retirement developments under construction, especially on the Istrian peninsula, where 'The New Tuscany' theme is being heavily promoted.

Currently (2004) Croatia does not tax foreign residents on their retirement and social security pensions. However, since tax laws and regulations change frequently, it is strongly advisable to consult a tax professional to determine your precise tax liability prior to moving anywhere abroad. The basic rule of thumb in most countries is to tax residents on their worldwide income, often including pensions. Double tax treaties can have an impact on tax liability as well.