DistantNews
Croatia Tackles Undeclared Holiday Rentals Amid Tourism Boom
๐Ÿ‡ฆ๐Ÿ‡น Austria /Economy & Trade

Croatia Tackles Undeclared Holiday Rentals Amid Tourism Boom

From Die Presse · (11m ago) German

Translated from German, summarized and contextualized by DistantNews.

TLDR

  • Croatia is intensifying its crackdown on undeclared short-term rental properties to combat the shadow economy.
  • New regulations require registration numbers for all holiday accommodations, with penalties for non-compliance for both landlords and platforms.
  • Despite rising costs and government efforts to increase affordable housing, Croatia's tourism sector continues to see growth, with German tourists forming the largest group.

The Croatian government is taking decisive action against the rampant "wild" rental of holiday homes, a practice that has proliferated with the rise of online platforms. Tourism Minister Tonฤi Glavina has declared that the "bell has tolled for undeclared landlords," emphasizing that unregistered accommodations will be barred from online advertising. This move aims to curb the shadow economy and address the scarcity of affordable housing in coastal cities, which has been exacerbated by the conversion of residential properties into short-term rentals.

Die Glocke fรผr die Schwarzvermieter hat geschlagen

โ€” Tonฤi GlavinaThe Croatian Minister of Tourism announced the government's crackdown on undeclared short-term rentals.

While these regulatory efforts, coupled with rising wages and inflation, are increasing costs for the domestic tourism sector, they are also intended to improve the occupancy rates of hotels and registered apartments. The government highlights the success of its measures to encourage long-term rentals, noting a 14% increase in taxable rental income from properties previously used for short-term lets. This indicates a shift towards more formal and taxed rental arrangements.

Alles wird digitalisiert. Ohne eine Registrationsnummer wird die Werbung auf einer Plattform schlicht nicht mehr mรถglich sein.

โ€” Tonฤi GlavinaThe Minister of Tourism explained the new digital registration requirement for holiday accommodations.

Despite the increased cost pressure, Croatia's tourism remains remarkably resilient. The country reported significant growth in overnight stays and guest numbers for 2025, generating substantial revenue. This sustained popularity, even among German tourists who constitute the largest segment of visitors, suggests that the appeal of Croatia as a holiday destination outweighs the rising prices and regulatory changes. The government's strategy appears to balance the need for formalization and fair taxation with the continued booming success of its vital tourism industry.

Das ist genau das, was wir wollten.

โ€” Tonฤi GlavinaThe Minister of Tourism commented on the increase in property owners declaring income from long-term rentals.
DistantNews Editorial

Originally published by Die Presse in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.