The Croatian parliament recently approved a package of draft laws aimed at curbing the impact of tourism on the housing market, although the final legislation will undergo further discussion and amendments before being passed.
In recent years, several European cities, including Malaga and Barcelona in Spain, Athens, and Budapest, have implemented similar measures to tackle housing shortages and rising prices for local residents. These actions are particularly targeted at popular tourist destinations and may have significant implications for platforms like Airbnb and Booking.com.
In Croatia, the coastal city of Dubrovnik has already banned new private rental permits in its historic Old Town, aiming to prevent young people from being priced out of the area. Croatian Finance Minister Marko Primorac stated that the new laws will increase taxes on properties used for tourist rentals but will not affect long-term housing or properties owned by individuals for personal use.
Some locals see this as an opportunity to revive towns that are primarily empty outside the tourist season. “What bothers the citizens of Split, as well as Dubrovnik and other coastal towns, is that they are emptied of residents,” said Zaklina Juric from the “Tenants Together” initiative. “There are no shops in the center, the town is dead, and someone has to finally acknowledge that,” she added, expressing support for the proposed laws.
Tourism is a significant contributor to Croatia’s economy, accounting for roughly 20% of the country’s GDP, and providing jobs for about 125,000 people in the short-term rental sector. However, many property owners who rely on these rentals are concerned that the new legislation could negatively impact their businesses.
