Croatia: The Croatian Ministry of Tourism and Sport has launched a public consultation on proposed changes to the country’s Hospitality Industry Act, including looking at how to redefine what a ‘holiday rental’ is.
One of the key amendments is introducing the term ‘host’ into law in Croatia – i.e. someone who owns and rents out accommodation [e.g. an apartment] in the same area where they are officially registered as a resident.
‘Hosts’ will be allowed to provide breakfast unless the property owner is renting out a flat in a multi-dwelling building, regardless of whether they live in the same building as not.
The government is introducing the regulation as it wants to discourage property owners and landlords from converting residential properties into holiday rentals.
Beforehand, all short-term rental property owners and operators were given the same treatment under Croatian law, no matter if they rented out a property in their primary residence or if it was in a secondary location or abroad.
In other changes to the law in Croatia, hosts may soon reportedly be eligible for a more favourable tax rate than other types of rental property operators.
Meanwhile, from now on, all rental property owners in multi-dwelling buildings will now require consent from 80 per cent of other residents in the same building before renting out their flats as holiday rentals. A similar law was passed last month by Spain’s Supreme Court, which gave homeowner associations the power to prohibit short-term rentals in residential buildings and complexes with a majority vote of residents [three fifths / 60 per cent].
Finally, as 15,000 properties are still undergoing a legalisation process, their temporary operating permissions will now be extended from 2024 to expire at the end of 2026.
Official data has revealed that more than 220,000 apartments and rooms are currently available for rent in 125,000+ properties in Croatia.