Labin has narrow cobblestone streets, picturesque as if it is in the Italian countryside, Source: Donarreiskoffer on Wikipedia, CC BY-SA 4.0

Small-town Croatia gives young families 60,000-euro plots of land for free

Small-town Croatia gives young families 60,000-euro plots of land for free

Labin has introduced an ambitious aid scheme, which would provide exponential value to the local community

Last week, authorities in Labin, Croatia, announced a new scheme to attract young families to the town. The scheme is extremely generous towards would-be residents, as authorities plan to give them plots of land where they could build their new homes.

Local authorities will give families municipal plots of land for a period of 99 years and, according to a statement by the town, each plot is valued at around 60,000 euros. More importantly, the recipients will have the opportunity to mortgage the land, giving them enough capital to then build their dream homes in the picturesque Croatian countryside.

The only cost to residents for the programme will be getting the necessary building permits from authorities, which can be paid in instalments over a period of ten years. Additionally, when paid, they will be counted towards the value of the property.

Furthermore, people will also have a chance to buy the land from the municipality during the 99-year lease, in instalments paid directly to the local government. Authorities have also said that the cost of the building permit will be subtracted from the value of the land if the residents decide to buy it out from the town.

Bringing the wind back into young families’ sails

According to Mayor Valter Glavičić, the idea for the land-lease scheme was born from public consultations with young people in the city. He also explained that helping families secure a space to live would solve some of their biggest issues and offer them a significant boost in life.

The land-lease scheme would technically cost the local government close to nothing, except for the actual land that it would provide for the families. At the same time, however, the land would not bring any benefits if there is no one living on it or no enterprises are working on it. If the new residents wish to buy it, the town would be able to recoup the costs.

By handing it out to young families for a period of 99 years, local authorities are trying to gain a vibrant new population, which will have an incentive to stay in Labin and contribute to the local culture and the economy.

Mayor Glavičić acknowledged that this is a risky programme in terms of monetary value because the town would lose the land for 99 years. However, the added value from the new residents would be even greater, so he looks forward to the first four families scheduled to get their land soon.



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