New Croatian tourism law aims to curb illegal rentals and more

Tourism and Sports Minister Tonči Glavina (Photo: Ministry of Tourism and Sports)

Croatia has unveiled a draft of a new Law on Hospitality Activity aimed at tackling illegal short-term rentals, modernising the tourism sector and aligning national legislation with new EU rules.

Tourism and Sports Minister Tonči Glavina presented the proposal on Friday, outlining a wide-ranging reform designed to address the rapid growth of short-term rentals and longstanding regulatory gaps.

At the centre of the proposed law is a strong push to combat unregistered accommodation and the grey economy.

Authorities plan to introduce a unified registration system for all short-term rental providers, alongside a mandatory registration number for each accommodation unit.

This measure, aligned with the EU’s new short-term rental regulation, will prevent unregistered properties from being advertised on online platforms and enable more effective oversight by authorities.

Inspection powers will also be expanded. In addition to the State Inspectorate, both customs authorities and local communal wardens will be authorised to monitor illegal hospitality activities.

The draft law places a significant emphasis on digitalisation. All administrative procedures, from categorisation requests to the issuing of permits, will be handled through a central digital register.

The move is expected to streamline processes, reduce administrative burdens and increase transparency across the sector.

The proposal introduces a comprehensive overhaul of accommodation categorisation rules, including mandatory re-categorisation periods:

• Private accommodation (rooms, apartments, holiday homes): every 10 years

• Other accommodation types (hostels, lodges, boarding houses): every 5 years

• Hotels and campsites: extended from every 4 to every 5 years

The aim is to ensure that quality ratings accurately reflect current conditions and that standards are consistently maintained.

New rules for hospitality operations

Among other changes, the draft law removes the possibility of issuing hospitality permits for apartments and rooms within residential buildings under certain conditions, while also providing clearer definitions for services offered in households.

Agricultural businesses registered in the official farmers’ registry will now be able to use commercial names such as “agrotourism” or “tourist farm”, a practice not previously regulated.

The law also introduces a ban on serving or allowing the consumption of energy drinks in hospitality venues, and adds non-payment of tourist tax as grounds for revoking operating permits.

The government says the reforms are part of a broader strategy to promote sustainable tourism and ensure fair market conditions, while also addressing housing affordability concerns linked to the expansion of short-term rentals.

A transition period will be provided to allow businesses and private landlords time to adapt to the new rules.

Public consultation open

The draft law has been opened for public consultation for 30 days, running from 17 April to 18 May 2026.

Following feedback, the government is expected to finalise the legislation as part of its ongoing reform of tourism management in Croatia.