NEW TOURIST RENTAL RULES IN CROATIA – WHAT PROPERTY BUYERS NEED TO KNOW
Buying real estate on the coast has always been one of the most sought-after investment options in Croatia. Whether it is an apartment for occasional family vacations or a property that will yield a stable return through tourist rentals, interest from both domestic and foreign buyers in attractive locations along the coast remains exceptionally high.
However, the beginning of 2025 brought significant legislative changes that fundamentally alter the rules of the game. With the entry into force of the new Building Management and Maintenance Act and amendments to the Hospitality Industry Act, buyers today must pay much closer attention to documentation, property types, and the new legal framework before purchasing.
Don’t worry, the story of buying rental properties in Croatia is far from over – it has simply been given new, clearer rules. To make your decision-making process easier, we bring you a clear and detailed overview of everything that has changed and what exactly this means in practice for you as a future owner.
Why did the rules change in the first place?
For years, tourist rentals in Croatia were fairly straightforward: you would buy an apartment, submit a categorization request, and within a few days, the keys were ready for your first guests. This brought an incredible boom to tourism, but over time, it also created serious challenges in daily life. Many multi-apartment buildings turned into “mini-hotels” overnight, leading to a decline in the quality of living, overloaded infrastructure, and frequent disagreements among tenants. The state decided to react in order to protect the quality of residential living and steer tourism toward a sustainable direction.
What do the new rules bring?
The main shift in this narrative relates to the division of the cards between apartments in buildings and holiday homes. The legislator decided to draw a clear line.
1. Apartments in buildings (Short-term rentals under scrutiny)
If a property is rented out for a period shorter than 30 days (i.e., classic Airbnb and Booking), it is now officially considered a short-term commercial rental.
- The 66% + neighbors rule: If you buy a classic apartment in a residential building today and want to engage in short-term tourist rentals, you must first obtain the written consent of other co-owners who hold more than 66% of the building’s total area before you can receive categorization papers.
- The most important detail: This 66% must strictly include your immediate neighbors – meaning everyone with whom the property shares a wall, as well as the apartments directly above and below yours.
2. Multi-occupancy rentals
The law has decided to put an end to overcrowded apartments. If you plan to rent an apartment to five or more adult, unrelated persons (which is often the case with accommodation for foreign workers or students), this is now considered “multi-occupancy rental.” For this form of rental, you also need the consent of 66% of the co-owners, including your immediate neighbors.
3. Buildings become legal entities (Community of Co-owners)
A completely new concept has been introduced – the “community of co-owners”. Buildings are now granted legal personality and their own OIB (Personal Identification Number). What does this mean for you? It will drastically simplify all administrative and legal proceedings. More importantly, it will be far easier for buildings to apply for EU funds and subsidies intended for facade renovation, energy retrofitting, and the installation of solar power plants. In the long run, this increases the value of the property itself.
4. Streamlined decision-making in buildings
To avoid situations where a single problematic tenant blocks the entire building, the required majorities for making key decisions have been reduced:
- Emergency repairs: Consent from co-owners is no longer required at all; the building manager reacts immediately.
- Necessary repairs (e.g., roof or elevator repair): Consent from one-third (33%) of the co-owners is sufficient (previously, it required over 50%).
- Regular management (choosing a tenant representative, installing a new elevator): Consent from more than 50% of the co-owners is required.
- Investment maintenance (major new investments in the building): Consent from 80% of the co-owners is required (previously, 100% was required).
5. Extensive powers for municipal wardens
Municipal wardens now have the legal authority to enter properties and monitor compliance with the law. They can order urgent measures to remedy irregularities if they notice:
- Unauthorized construction work that compromises the building’s structural integrity (e.g., knocking down load-bearing walls in an apartment).
- Illegal enclosing of balconies or loggias.
- Installation of air conditioning units or other devices on the street-facing facade of the building.
6. Stricter misdemeanor fines
The new law introduced serious financial penalties for non-compliance:
- For building managers who fail to do their job: from €700 to €5,500.
- For co-owners (apartment owners) who break the rules or perform illegal modifications: from €400 to as much as €10,000.
- For contractors performing illegal work on a building: from €5,500 to €10,000.
Who is a “host” and who is not?
One of the biggest changes is the introduction of the official term “host”. A host is considered a renter who has a registered residence in the county or island where the property is located (e.g., renting a room in the house where they live). However, the law clearly emphasizes: a renter who provides accommodation services in a multi-apartment or commercial-residential building is not considered a host. This means that buying an apartment in a building with the intention of tourist rental is now legally considered a purely commercial activity, regardless of where the owner lives.
What about existing categorizations and transitional periods?
The law has also taken existing renters into account, leaving a transitional period of 5 years (until December 31, 2029) during which existing renters in buildings must align their consents so they do not lose their right to operate. Because of this, it is extremely important to check every property and its existing documentation individually.
Local taxes tailored by cities
There are no more universal rules for the entire country. From 2025, cities and municipalities have been given the right to independently determine the property tax rates and flat-rate taxes per bed. Certain cities can further restrict the issuance of new licenses in overburdened zones (such as old town centers) through their own local decisions, meaning that local spatial plans must also be studied in detail before purchasing.
What does all this mean for you as a property buyer?
These changes do not mean that buying a rental property is a bad idea – on the contrary, they introduce order to the market and protect your investment in the long run from unfair competition and neglected buildings. However, the profile of highly sought-after properties has shifted, and buyers’ focus has moved to two secure options:
A) Detached houses and villas
Since the majority of the new legal restrictions apply to multi-apartment buildings, standalone properties, family houses, and luxury villas with pools are completely exempt from these rules. With them, there is no gathering of tenants’ signatures or dependence on neighbors. That is why our buyers increasingly choose:
- houses with a pool,
- villas with a higher level of privacy,
- new constructions,
- properties in quieter locations,
- and properties that can be used year-round.
If you still prefer apartments, we direct you toward properties that already have a clean rental history or projects that are legally defined for tourist purposes from the very start.
B) Apartments in buildings with an established business or purpose-built new constructions
If you still wish to buy an apartment, it is crucial to check the co-ownership relationships in the building, whether the building has proper documentation (use permit), and what the local taxes are (which each municipality and city prescribes autonomously from 2025).
Properties from our portfolio that are already successfully rented
Our portfolio currently includes several properties that are already being used for tourist rentals and enjoy very good occupancy rates during the season.
Take a look at a selection of our featured offers:
- Beachfront apartment in Privlaka
- House with a pool in Kožino
- Modern house with a pool in Murvica
- Holiday home in the vicinity of Ražanac
- House with a pool in Zaton near Nin
- Modern holiday home in Zaton near Nin
- Luxury villa on the island of Ugljan – Kali
Emporia Advice: Don’t navigate the regulations alone The real estate market has become more professional, which is actually good news for serious buyers. High-quality properties with clean documentation, good locations, and clear usage possibilities are increasingly in demand.
When buying real estate for tourist rental, it is important to clearly define the property’s utilization plan from the start – whether for your own vacation, occasional rental, or long-term investment. Location, property type, and the features that will be most important to the buyer in the long run often depend precisely on this.
At Emporia Real Estate, we strive to provide buyers with as much relevant information as possible regarding the property itself, its documentation, and its usage possibilities, making the entire process as clear and simple as possible.
Especially when it comes to properties attractive for tourist rental, we can highlight buildings that are already successfully used during the tourist season or possess characteristics currently highly sought-after by guests – such as a great location, proximity to the sea, privacy, a pool, or high-quality new construction.
The new rules do not change the fact that coastal real estate in Croatia remains highly sought after. They simply further emphasize the importance of a quality property, proper documentation, and good preparation before buying.
Want to learn more?
On our blog, you can find additional information, tips, and current topics related to buying real estate, tourist rentals, and the real estate market in Croatia: https://www.emporia-realestate.com/real-estate-blog/
Contact us
📍 Emporia Real Estate – Zadar
Ulica Svetog Vinka Paulskog 32, 1st floor
23000 Zadar
📞 +385 23 300 000
📍 Emporia Real Estate – Sukošan
D-Marin, Main Building, Dr. Franje Tuđmana
24 23206 Sukošan
📞 +385 23 300 000
