Croatia vs. France: Where to Buy a Million-Euro Holiday Home in 2026

Croatia vs. France: Where to buy a million‑euro holiday home in 2026 — quick verdict

Hook: If you’re weighing a stylish Montpellier villa or Sète designer house against an Istrian stone villa, a Dubrovnik‑coast dram or a Hvar hideaway, you’re probably overwhelmed by conflicting price lists, seasonal rental rules and island logistics. This guide cuts through the noise with 2026 trends, practical comparisons and step‑by‑step decisions for buyers and buy‑to‑let investors.

In one sentence

Value: Croatia usually gives more square metres, direct sea access and stronger summer rental premiums for the same million‑euro budget; Montpellier and Sète offer steadier year‑round demand, urban lifestyle and easier transport links. Investment-wise: expect higher gross seasonal yields on Croatian islands, but higher regulatory and management effort.

Why this matters in 2026

Fast forward to 2026: remote work, longer shoulder‑season travel and smarter short‑term rental rules have reshaped where holiday‑home buyers get the best returns. European buyers favor properties that combine authenticity with flexible income — and Croatia’s coast has matured as a premium market since the euro and Schengen moves of 2023. Meanwhile, French regional markets like Montpellier keep winning buyers wanting city comforts and reliable infrastructure.

How I compared properties

I matched equivalent million‑euro properties across two profiles: a French designer house/apartment (ex. Montpellier / Sète region) and Croatian coastal equivalents in Istria, Dubrovnik Riviera and Hvar. For each I evaluated:

• Price per square metre and usable space
• Rental potential (nightly rates, occupancy, seasonal spread)
• Running costs (maintenance, property management, taxes and fees)
• Lifestyle fit (transport, amenities, privacy, marina access)
• Regulatory risks (short‑term rental rules, licences, local planning)

Snapshot: Typical million‑euro properties (2026)

These are representative, not listings — but they reflect market realities for 2026.

Montpellier / Sète (France) — designer house or central apartment

• Typical asset: Renovated designer house (3–4 beds) or historic apartment in centre.
• Size: 120–160 m²
• Price drivers: proximity to city centre, architectural finish, TGV access to Paris.
• Transport: Montpellier airport (+ seasonal routes), TGV connections.
• 2026 trend: steady demand from domestic buyers & long‑stay foreign tenants; STR regs are moderate and predictable.

Istria (Croatia) — stone villas & trulli‑style homes

• Typical asset: Restored stone villa with garden and sea or bay views.
• Size: 160–300 m² (more land for same price versus France)
• Price drivers: direct sea frontage, proximity to Poreč/Pula, private pools.
• Transport: Pula/Dubrovnik/Zadar airports with expanding low‑cost links (2024–25 growth continued in 2026).
• 2026 trend: agritourism & wellness stays extend shoulder season; newcomers include remote‑worker bookings.

Dubrovnik Riviera (Croatia) — classic coastal luxury

• Typical asset: Luxury cliffside villa or stone maisonette near Dubrovnik Old Town or Cavtat.
• Size: 100–200 m² but premium location commands high price per m².
• Price drivers: Old Town proximity, private mooring, views and exclusivity.
• Transport: Dubrovnik airport (more year‑round routes since 2024), ferry connections to islands.
• 2026 trend: strong high‑season demand, municipal pressure on cruise and STR numbers has tightened supply.

Hvar (Croatia) — party island prestige or secluded coves

• Typical asset: Luxury villa with pool, terraces and private mooring or renovated village stone house.
• Size: 120–250 m²
• Price drivers: proximity to Hvar town, private dock, and seasonal events (July–August).
• Transport: catamarans, private boat owners, helipad options for ultra‑luxury; Split airport access.
• 2026 trend: high nightly rates but shorter season; more buyers seeking multi‑week rentals (workation weeks). See how festival-driven demand changes short‑term performance in our piece on pop-up retail and festival strategies.

Price and space: how far does €1 million go?

General price guidance (ranges for prime locations, 2026):

• Montpellier/Sète: €1m typically buys ~120–160 m² in a renovated or designer property in a good location.
• Istria: €1m often secures 180–300 m² villa with land and private pool — more outdoor space per €.
• Dubrovnik Riviera: €1m buys smaller interior space (100–180 m²) but rare direct sea access and high exclusivity.
• Hvar: similar to Dubrovnik by price per m², but you may get more terraces and dock access vs interior area.

Rental potential and real examples

Below are illustrative scenarios — use them to model your own returns.

Scenario A — Hvar luxury villa (€1,000,000)

• Average summer nightly rate: €600–€900 (peak weeks higher)
• Estimated occupancy: 50–65% annually (high season weighted)
• Gross annual income (midcase): €600 x 0.6 x 365 ≈ €131,400
• Net after manager, cleaning, utilities, commissions (≈40–55%): ≈ €60,000–€80,000 — budget for professional hosting fees; see advice for small hosts and resilient operations in resilient claims & hosting playbooks.
• Net yield ≈ 6–8% gross, 4–6% net — strong for a coastal buy‑to‑let but highly seasonal.

Scenario B — Montpellier designer house (€1,000,000)

• Average nightly rate (short let): €250–€450
• Occupancy: 40–55% (more even year‑round thanks to business & city tourism)
• Gross annual income (midcase): €350 x 0.5 x 365 ≈ €63,875
• Net after costs (≈40–50%): ≈ €32,000–€38,000
• Net yield ≈ 3–4% — steadier but lower upside than Croatian coast for same price.

What this means

On paper, Croatian coastal properties often show higher gross yields because of peak summer rents and unique beachfront premium. Montpellier properties produce steadier year‑round income and lower management friction. Your choice depends on whether you prioritise cash flow spikes and private outdoor lifestyle (Croatia) or predictable, lower‑effort returns and urban convenience (France).

Costs beyond purchase price — what to budget for in 2026

Buyers commonly forget recurring or one‑off costs. Below are the main ones and what to expect for Croatia vs France.

Transaction taxes & legal fees

• Croatia: buyers from 2026 should budget for the typical property transaction charges — including a transfer tax (commonly around 3% on purchases from private sellers) or VAT (25%) on new developments; notary and legal fees depend on your lawyer but plan 1–2% for closing costs. Always verify current rates and exemptions with a Croatian lawyer or notary.
• France: notary and registration fees generally add ~6–8% on older properties; new builds may be subject to VAT. Agent commissions vary but are often quoted separately by sellers.

Ongoing property costs

• Insurance: marine exposure in Croatia can raise premiums slightly vs inland French properties.
• Utilities & winter maintenance: islands can have higher utility logistics; Montpellier benefits from robust urban services — for a detailed look at heating and lifecycle choices consider commercial boilers vs residential heat pumps.
• Property management & cleaning: plan for 15–30% of rental revenue if using full service on Croatian islands; our host playbook highlights practical operating models for small hosts: resilient claims & hosting.
• Local tourist tax: charged per guest night in Croatia and France — you collect and remit if renting short‑term.

Regulatory landscape: 2024–26 changes you must know

Short‑term rental rules tightened across Europe after 2020. Key 2026 takeaways:

• Croatia: many coastal municipalities introduced stricter rental registrations and licensing rules during 2023–2025. By 2026 enforcement is more consistent — expect mandatory property registration for holidays, safety inspections for pools, and clear rules on advertisements. Budget time and cost for compliance.
• Dubrovnik & Hvar: local municipalities have capped certain rental licences in popular historic cores; being outside town centres often makes approvals easier — local heritage and planning pressures make historic-area compliance a realistic constraint.
• France (Montpellier): cities are refining tourist tax collection and some are tightening limits in historic districts, but regulations are generally predictable and serviced by established hotel‑tax frameworks; see how hotels and membership models are adapting in membership & micro-subscription shifts.

Practical rule: Treat regulatory compliance as a line item in your investment plan. If you want to run STRs in Croatia in 2026, permit and registration timelines can be 6–12 weeks depending on location.

Lifestyle tradeoffs: morning espresso in Montpellier or cliffside sunset in Hvar?

Choosing a property is also choosing a lifestyle. Consider:

• Access: Montpellier gives fast rail and airport links; Croatian islands rely on ferries and seasonal flights — verify year‑round access if you need off‑season visits.
• Privacy vs community: Croatian villas often offer more private outdoor space; French homes are closer to cultural life, restaurants and healthcare services — for local venue and cultural-fit ideas see our small boutique venue roundup.
• Marina & boating: If you need berthing, Dalmatian locations (Hvar, Dubrovnik) are strong but berths are scarce and expensive; Istria has growing marina infrastructure.
• Events & seasonality: Hvar’s festival season boosts short‑term rates heavily; Montpellier benefits from university and conference calendars for steady bookings — for festival and event strategies check pop-up & festival strategies.

Actionable checklist: How to decide and buy (8 steps)

1. Define goal: primary holiday use, buy‑to‑let or blended. That decides location and finish level.
2. Model returns: create a 5‑year cashflow with conservative occupancy and explicit costs for tax, management, utilities and compliance.
3. Visit in shoulder seasons: see access, services and rental demand outside July–August.
4. Hire a local lawyer and tax advisor: confirm transfer tax/VAT, ownership limits, and rental licence requirements in writing.
5. Check infrastructure: water, sewage, internet quality (critical for long‑stay remote guests), and marina availability if needed.
6. Negotiate & structure purchase: consider escrow, staged payments for renovations, and clear success metrics if buying sight unseen.
7. Register for rental & tourism compliance: obtain local registration and safety certificates before listing.
8. Plan property management: vet 3 local managers, compare fees and reviews; negotiate marketing fees and booking calendar control. Use the small-host operations guidance in resilient claims & hosting when comparing manager proposals.

Financing and residency notes (practical)

Non‑resident mortgages are available in both countries, but under different terms. French banks are conservative; Croatian banks finance foreign buyers but often require higher deposits and local income proofs. As of 2026:

• Expect deposit requirements of 20–40% for non‑resident buyers in both markets.
• Interest rates remain variable — shop across international banks and local lenders; euro pricing is simpler post‑2023 euro adoption in Croatia.
• Residency: property ownership in Croatia does not automatically grant residency — follow immigration rules if you plan to stay longer.

Final recommendation — who should buy what?

Buy in Croatia if:

• You prioritise sea access, outdoor living and higher summer rental returns.
• You can handle (or outsource) more complex property management and seasonal logistics.
• You want more land/space for the same price compared with French regional towns.

Buy in Montpellier / Sète if:

• You value stable, year‑round demand and city infrastructure (healthcare, trains, airports).
• You prefer fewer regulatory surprises and easier access for guests off‑season.
• You want a designer home with strong cultural life and resale liquidity in the French market.

Advanced strategy for 2026 buyers

Consider a blended portfolio: one primary home in Croatia for leisure and summer yield, plus a Montpellier apartment for winter rentals and a secure European urban foothold. This hedges seasonality, diversifies rental risk and plays to strengths of both markets.

Key takeaways

• Space vs stability: €1m buys more outdoor space in Croatia and more reliability in Montpellier.
• Yields: Croatian coast: higher gross seasonal yields; Montpellier: steadier net yield year‑round.
• Compliance: 2024–26 regulations tightened — budget time and costs for licensing, especially in Dubrovnik and Hvar.
• Transport & tenants: Montpellier wins off‑season guests; Croatia wins luxury summer travellers and workation groups.
• Do the maths: build conservative models, visit outside high season and hire local specialists before signing.

Next steps — practical offers

If you want an immediate, personalised comparison for your exact budget and preferences, do this now:

1. Download our 2026 Million‑Euro Holiday Home Checklist (free from croatian.top).
2. Book a hybrid viewing: 1 local scout inspection in Croatia + a European property adviser call to compare Montpellier options.
3. Request a 5‑year cashflow model from two property managers (one Croatian, one French) — we’ll send a template.

Call to action: Ready to compare specific properties and get a free 5‑year rent vs use model? Visit croatian.top/compare or email our property team to schedule a personalised walkthrough and compliance check for your target locations.

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