Croatia released a draft Law on Hospitality Activity to improve monitoring of its travel sector. The goal is to stop illegal short-term rentals and make sure national rules align with new EU regulations.
Tourism and Sports Minister Tonči Glavina presented the proposal on Friday, 17 April 2026. He called it a major revamp for one of the country’s most vital economic sectors.
If adopted, the law will become one of the most substantial changes to Croatia’s tourism framework in recent years.
Registration number for every rental
The draft introduces a single registration system for all short-term rental providers. Each property must have its own registration number.
The system follows the European Union’s new rules on short-term rentals.
Properties without a valid number cannot be advertised online. Platforms like Airbnb and Booking.com must check that all listings are registered, or they will face heavy fines.
Glavina said that the law aims to address several issues, including unregistered listings and cases where commercial rentals are presented as private use.
A public consultation will run for 30 days, from 17 April to 18 May 2026. The government plans to finalise the text after this period.
Tighter rules for private renters
Only property owners and their immediate family would qualify to operate as private renters. If they fail to pay the tourist tax, authorities can revoke their permits.
This gives regulators a clear way to act against repeat offenders.
The draft also expands inspection powers. In addition to the State Inspectorate, customs officers and local wardens can check and act on illegal rental activity.
It also removes the option to grant hospitality permits for apartments and rooms in residential buildings under certain conditions.
The draft sets clearer definitions for services provided in households. It also includes a ban on serving or allowing the consumption of energy drinks in hospitality venues.
Chasing lost revenue
Private renters failed to pay about €13 million in tourist taxes last year, based on official figures in the proposal. The government plans to address this by tying tax compliance directly to licensing.
The reforms also respond to housing shortages in coastal areas and the growing strain on local infrastructure. Early data shows a possible shift, with fewer short-term rentals and more properties moving to long-term leases.
Officials said that these changes are part of a wider plan to support sustainable tourism, create fair market conditions, and improve housing affordability affected by the growth of short-term rentals.
Digital register, new ratings
All administrative processes, from categorisation requests to permit issuance, would move to a central digital register. The goal is to simplify procedures, reduce paperwork, and improve transparency across the sector.
The draft also updates accommodation categorisation rules by introducing set review periods. Private accommodation, such as rooms, apartments, and holiday homes, would be reviewed every 10 years.
Hostels, lodges, and boarding houses would follow a five-year cycle. Hotels and campsites would shift from a four-year to a five-year cycle.
Agricultural businesses listed in the official farmers’ registry would be allowed to use names like “agrotourism” or “tourist farm”, which were not previously regulated.
A transition period will give businesses and private landlords time to adjust.
Meeting Europe’s new border tech
The Croatian reform comes at the same time as a major change in how Europe tracks travellers.
The Entry/Exit System (EES) became fully operational on 10 April 2026 across 29 European countries, including Croatia. The European Travel Information and Authorisation System (ETIAS) is set to launch in the last quarter of 2026 across 30 countries.
Both systems collect detailed data on non-EU visitors staying for short periods.
EES records each entry and exit, along with biometric data (such as fingerprints or facial scans), the date, and the border crossing point. This could allow authorities to compare arrival data with guest records from registered accommodation providers in Croatia.
The proposed central digital register follows the same digital-first approach as EES and ETIAS. Under the Croatian draft, customs authorities will also have access to EES data.
This could support joint action against operators who host unregistered or overstaying guests.
Penalties for online platforms would add a national layer of enforcement on top of EU-level traveller checks. A visa-exempt tourist would need ETIAS approval to enter Croatia, and any booked property would need a valid Croatian registration number.
Travellers who are mindful of costs may feel the combined impact of the €20 ETIAS fee, biometric checks under EES, and stricter rental rules. Early signs suggest that Croatia’s move away from short-term rentals could speed up, as informal or undeclared stays become harder to maintain.
However, there are limits. EES and ETIAS do not track where travellers stay within the Schengen area, so they cannot directly identify illegal rentals without national data sharing.
The draft does not state whether Croatia’s new digital register will connect with EES data.
Reform heading towards adoption
The draft Law on Hospitality Activity shows a clear shift towards tighter regulation of a sector that has long relied on flexibility.
New requirements, such as registration numbers, stronger enforcement, digital permits, and updated categorisation rules, would make the system more controlled.
Officials said that these changes aim to address ongoing issues with unregulated or informal activity.
The public consultation will end on 18 May 2026. After that, the government plans to move forward with the law as part of its wider tourism reform.