The Croatian county is the largest peninsula in the Adriatic the region, located between the Gulf of Trieste and the Bay of Kvarner.

What's so special about it?

Even though Istria has only 31% of Croatia's available tourist accommodation it represents 43% of total Croatian tourism. Tourism generates 1bn in revenue and represents nearly 17% of the county's economy.

The Balkan war did not reach Istria and is long forgotten in most parts of Croatia, which the European Tour Operators' Association last year voted its top European destination.

Best kept secrets Istria has many hidden tourist gems such as the famous white truffle . . . eaten extensively in the region and home to the largest one ever found in the world.

Porec is filled with Romanesque and Venetian architecture, including the Euphrasius' Basilica. The Lim canal is the only genuine fjord and a protected nature reserve and Pula is famous for its well-preserved Roman amphitheatre and what are supposedly dinosaur footprints on its sea shores.

Who lives here?

Writer James Joyce lived here from October 1904 to March 1905, rocket engineer Herman Potocnik was born in Pula, Georg Ritter von Trapp, who was immortalised in The Sound of Music, lived in Pula.

Formula One legend Mario Andretti was born in Istria, Josip Broz Tito holidayed here and famous Venetian lover Giacomo Casanova romanced many women here.

What's the property market like?

"Istria is no longer an emerging market, it has already emerged, " says Liliane Scully of Irish agents Adriatic Riviera. However she believes there is still a lot of room for capital appreciation, which is currently about 15-20%.

When Croatia enters the EU, projected to be by 2010, it is thought that prices will rise by another 20%. Scully reports that while it has always been popular with the British and Germans the Irish are only beginning to discover Istria. But with direct Ryanair flights from March to October from Dublin to Pula its profile is rising.

The influx of foreigners has pushed prices up but, with the increased availability of mortgages, locals are able to compete on an equal footing. Scully points out that Istria is not the place for those looking to flip immediately or after a quick exit strategy . . . it's more for those looking for a second home in the sun.

Stevo Zufic, of developers IMG, reports that areas such as Novigrad, the Brioni islands and Rovinj are protected by government plans to prevent largescale development seen in Spain and therefore in many areas planning is difficult to achieve.

How do you go about buying property?

There are some English language newspapers such as the Croatian American Times, HINA News Line, Nacional and Voice of America. Agents can be sourced through the AIPP or FOPDAC.

There are some restrictions on buying as approval from the Ministry of Justice in Croatia must be obtained for foreigners, however, while this is usually straightforward, it can take about six months.

During this time the purchase can be processed with the Land Registry Office. Another method if you plan to rent is to set up a limited company, which will entitle you to the same rights as a domestic company.

This can be arranged by a Croatian solicitor and usually takes about four to six weeks. However it incurs set-up and maintenance costs and VAT is 22%, although this may be reclaimable.

It should be noted that if a buyer does not fulfil the terms of the contract they may forfeit their down payment and on secondhand homes title registration in Croatia can be very slow.

Where are the best places to buy?

Irish investors generally prefer to buy on the coast, which is more expensive.

However locals and other Europeans are not as fussy and buy inland. Pula is the largest city and home to the main airport, however the main tourist town is Porec.

The most exclusive areas are Rovinj and the beautiful but protected islands of Brioni. Other popular areas are Novigrad and Umag . . .which are quieter than Porec but still right by the coast.

What's the rental market like?

Istria is generally not a large rental market but it is one of the main tourist areas in Croatia and in the Holidaylettings. co. uk 'summer trend tracker' Croatia as a whole was the top emerging destination in 2007 and overall was the seventh most popular location for tourists looking to rent abroad. Rental yields average about 9% and about 10-12% in the high-summer season.

What's the resell market like?

Scully says the resale market is developing, especially now that locals have access to mortgages.

What type of property is available?

Average property prices?

It may be still possible to get cottages inland from 40,000 but these often need just as much invested in renovation costs. New properties close to the coast start from about 150,000 and large villas start from in excess of about 1,850 per sq ft, depending on location.

What are the tax breaks with Ireland?

Croatia and Ireland have a double taxation agreement.

For capital gains there are no taxes payable if you retain the property for three years, otherwise it is 35%. Rental income is taxed at 15% and there are some local taxes to be paid which depend on the location.

USEFUL CONTACTS Honorary Consul of Ireland in Zagreb:

00385-163 100 25;

irish. consulate. zg@inet. hr Embassy of the Republic of Croatia in Dublin: 01-476 7181;

croatianembassy@eircom. net HINA News Line: www. hina. hr Nacional: www. nacional. hr Voice of America:

www. voanews. com Global Property Guide:

www. globalpropertyguide. com Association of International Property Professionals:

www. aipp. org. uk FOPDAC: www. fopdac. com Overseas Cafe:

www. overseascafe. com My Overseas Property:

www. myoverseasproperty. ie Istria Of"cial Tourism Website:

www. istra. hr Guide to Istria: www. istria. info Istrian Regional Government:

www. istra-istria. hr The Economist (Croatia):

www. economist. com/countries/Cr oatia/