Croatia is exploring new measures to tackle its housing shortage by proposing restrictions on short-term apartment rentals. The suggested changes reflect a strategic effort by the Croatian government to balance the scales between the lucrative tourism sector and the pressing need for affordable living spaces for its residents.
Tourism, a cornerstone of the Croatian economy, contributes approximately 20% to the nation’s GDP. However, this thriving industry, buoyed by attractive property tax benefits and lenient inheritance levies, has inadvertently fueled a housing crisis. The appeal of rental properties as investment opportunities has created an imbalance in the real estate market, with nearly 40% of the housing stock—around one million apartments—dedicated to commercial use, according to Deputy Prime Minister and Construction Minister Branko Bacic.
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The latest proposal from the Croatian government seeks to address this issue directly by introducing strict regulations on short-term rentals within apartment complexes. According to the new plan, 80% of building owners would need to approve the use of their units for commercial purposes. The regulation is expected to affect popular tourist cities such as Dubrovnik, Split, and Zagreb, and would also impose limits on the number of tenants in rental apartments.
“The goal is to restore these apartments to their original purpose,” Bacic stated. “By increasing the availability of housing, we hope to make it more accessible to young families and other citizens looking to purchase or rent,” said the Deputy Prime Minister.
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With a population of approximately 3.9 million, Croatia currently has around 100,000 registered short-term rental units—a figure that has seen a steady increase in recent years. This development comes in the wake of similar measures adopted by other tourist-heavy cities across Europe. Barcelona, for instance, has announced plans to ban all short-term rentals to mitigate the impacts of mass tourism and improve housing affordability for its residents.
Neighboring Slovenia is also considering restrictions on short-term rentals, with a proposed law that could limit rentals through platforms to a maximum of 30 days per year. This proposal is still under review and has not yet been formally introduced to the Slovenian parliament.
Neighboring Slovenia is also considering restrictions on short-term rentals, with a proposed law that could limit rentals through platforms to a maximum of 30 days per year. This proposal is still under review and has not yet been formally introduced to the Slovenian parliament.
