Croatia to crack down on illegal tourist rentals with sweeping new law

Croatia is preparing to introduce sweeping new legislation aimed at tackling illegal short-term tourist rentals, with authorities pledging to “declare war” on unregistered accommodation providers.

Tourism and Sport Minister Tonči Glavina confirmed that a new Hospitality Act will be sent into legislative procedure by May, Poslovni.hr reports. The law is designed to strengthen oversight of rental properties and eliminate so-called “black market” operations within the tourism sector.

“By May we plan to send the new Hospitality Act into procedure, through which we are in a way declaring war on illegal renting and unregistered activity,” Glavina said.

A key element of the proposed law is the introduction of enhanced digital controls, in line with European Union regulations governing short-term rental platforms.

Under the new framework, online platforms will not be permitted to list accommodation providers who are not officially registered or who do not possess formal approval to provide services. This measure aims to prevent illegal landlords from advertising properties to tourists through major booking platforms.

Each accommodation unit, whether a room, apartment or holiday home, will be required to have a unique identification number. This number will be monitored by Croatia’s Tax Administration, enabling authorities to receive daily data updates and track rental activity in real time.

Glavina explained that the system will allow for comprehensive digital supervision without the need for constant physical inspections on the ground.

“This is an obligation under European Commission provisions regarding large platforms, and it will enable us to carry out extremely significant control over what is happening without physically going into the field,” he said.

The government also plans to expand enforcement powers. Municipal wardens, customs authorities and the State Inspectorate are expected to be granted additional authority to monitor and act against unregistered rental activity.

The move comes amid growing concerns about unfair competition, lost tax revenue and the impact of unregulated tourism on local communities.

The issue of illegal rentals will be a central topic at the 5th Congress of Family Accommodation, where industry stakeholders are gathering to discuss regulatory changes and the future of private tourism rentals.

Barbara Marković, President of the Croatian Association of Family Accommodation (HUOS), highlighted that a special round table discussion will address the regulation of the “grey zone” of unregistered accommodation.

On the first day of the two-day congress, participants will focus on new rules and laws affecting family accommodation providers. The second day will be dedicated to answering questions and addressing concerns raised by stakeholders.

Tourism remains one of Croatia’s most important economic sectors, and authorities are keen to ensure fair competition and compliance across the industry.