Housing prices boosted by tourism boom - Croatia proposes laws to regulate short-term rentals
Croatia is tackling rising housing prices caused by the tourism boom with proposed laws to regulate short-term rentals in destinations such as Split and Dubrovnik.
The legislation, still under discussion, includes higher rent taxes and requires 80% of tenants in apartment buildings to approve short-term leases, causing anxiety among property owners.
Barbara Markovic, President of the Croatian Accommodation Association, expressed concern about the impact on smaller-scale hosts. "Someone with an apartment shouldn't need to get consent from other tenants," she said.
Larger-scale operators, she added, can't provide high-quality service if they don't live near the rental. Markovic highlighted the rapid growth of short-term rentals, noting: "We grow by 30,000 beds a year. Mass housing has not brought benefits."
In Split, locals say short-term rentals are wiping out communities. In the capital Zagreb, various apartment owners have raised concerns about the requirements for the consent or approval of neighbors and the increase in taxes.
The tax treatment has suddenly increased from 2% to over 600% per year, while experts believe that the laws could force the closure and sale of apartments.
Tourism, which accounts for 20% of Croatia's GDP, could face far-reaching impacts from the changes.
While some locals see the reforms as necessary to revitalize communities, the final legislation awaits further discussion in parliament.
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