Croatia Approves New Hospitality Act to Regulate Short-Term Rentals and Align Tourism Sector with EU Rules by 2027

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Anamika Talukder

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June 28, 2026 4:35 PM

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The Croatian government has approved a draft Hospitality Act that proposes sweeping reforms to the country’s fast-growing short-term accommodation sector. The legislation is designed to modernize the regulatory framework, strengthen oversight of private tourist rentals, and align Croatia with new European Union requirements governing short-term accommodation services.

If adopted by the Croatian Parliament, the law will introduce a unified registration system, tougher enforcement against illegal rentals, fully digital administrative procedures, and updated property classification standards. The government aims to bring the legislation into force on January 1, 2027, marking a significant step toward improving transparency, consumer protection, and sustainable tourism management.

As one of Europe’s most popular holiday destinations, Croatia has experienced rapid growth in vacation rentals over the past decade. While the expansion has boosted tourism revenues and provided income opportunities for property owners, it has also created regulatory challenges related to compliance, taxation, housing availability, and fair competition within the hospitality industry.

Aligning Croatia with New European Union Regulations

A central objective of the proposed Hospitality Act is the implementation of EU Regulation 2024/1028, which establishes common rules for collecting and sharing data on short-term accommodation rentals across European Union member states.

Under the new framework, every legally registered short-term rental property will receive a unique registration number. Online booking platforms will be required to display this official identifier on accommodation listings, making it easier for authorities and consumers to verify whether a property is operating legally.

The single registration system is expected to improve transparency throughout the tourism marketplace by creating a standardized database for accommodation providers. It will also facilitate information sharing between national authorities and digital platforms, helping ensure that only compliant businesses can advertise their services.

Officials believe harmonizing Croatian regulations with EU standards will simplify oversight while supporting a more competitive and trustworthy tourism sector.

Stronger Measures Against Illegal Accommodation

The proposed legislation also introduces stricter measures to combat unregistered short-term rentals, an issue that has become increasingly important in many European tourism destinations.

Under the new rules, properties that fail to complete the required registration process will no longer be permitted to advertise on digital booking platforms. Authorities hope this restriction will significantly reduce the number of unauthorized accommodation providers operating outside the legal framework.

The draft law also provides for higher financial penalties for businesses and individuals found operating illegal tourism services. By increasing sanctions, the government aims to discourage tax evasion, improve consumer protection, and ensure fair competition between registered businesses and unauthorized operators.

Enforcement responsibilities will be expanded beyond traditional tourism inspectors. The Croatian Customs Administration will join other regulatory bodies in monitoring compliance, strengthening the government’s ability to detect illegal commercial activity and enforce the new rules more effectively.

Officials argue that broader interagency cooperation will help close regulatory gaps that have allowed some accommodation providers to avoid registration and taxation.

Digitalization Through the eTurizam Platform

Another major pillar of the reform is the continued digitalization of administrative procedures.

The government plans to centralize accommodation registration, licensing, updates, and other administrative services through the eTurizam digital platform. The system is intended to reduce paperwork, simplify interactions between property owners and government agencies, and accelerate the processing of tourism-related applications.

Instead of relying on traditional in-person procedures, accommodation providers will be able to complete most regulatory requirements online. Officials expect the digital platform to improve efficiency while reducing administrative costs for both businesses and public authorities.

The expanded use of digital services also supports Croatia’s broader strategy of modernizing public administration through technology-driven solutions.

Tourism businesses are expected to benefit from faster approvals, improved record management, and easier compliance with evolving regulatory requirements.

Updated Property Classification Standards

The proposed Hospitality Act also introduces updated rules governing the categorization and quality classification of tourist accommodation.

Regular reviews and re-categorization procedures will help ensure that hotels, apartments, guesthouses, holiday homes and other tourism facilities continue to meet established quality standards throughout their operating life.

Officials say maintaining consistent accommodation standards is increasingly important as Croatia competes with other Mediterranean destinations for international visitors.

Modern classification systems not only improve transparency for travellers but also encourage property owners to invest in maintenance, sustainability improvements and service quality.

The government believes these measures will strengthen Croatia’s reputation as a high-quality tourism destination while enhancing consumer confidence in accommodation offerings across the country.

Supporting Sustainable Tourism Growth

The proposed reforms reflect a broader effort to balance tourism growth with effective regulation.

Croatia’s tourism industry remains one of the country’s most important economic sectors, contributing significantly to employment, investment and export earnings. However, the rapid expansion of private accommodation has also generated concerns about housing affordability, seasonal overcrowding and unequal regulatory treatment between traditional hotels and short-term rental operators.

By improving oversight, enforcing registration requirements and strengthening market transparency, policymakers hope to create a more sustainable tourism ecosystem that benefits businesses, residents and visitors alike.

The reforms are also expected to improve the accuracy of tourism data, enabling authorities to make more informed decisions regarding destination management, infrastructure planning and tourism policy.

Legislative Path Toward 2027 Implementation

Following approval by the Croatian government, the draft Hospitality Act will now proceed to the Croatian Parliament for legislative debate and consideration.

Lawmakers will review the proposed measures before voting on the legislation. If approved, implementation is scheduled to begin on January 1, 2027, providing accommodation providers, digital booking platforms and regulatory agencies with time to prepare for the new requirements.

During the transition period, authorities are expected to issue detailed guidance on registration procedures, platform obligations and compliance measures to ensure businesses can adapt smoothly to the updated framework.

Looking Ahead

Croatia’s proposed Hospitality Act represents one of the country’s most comprehensive tourism regulatory reforms in recent years. By integrating EU Regulation 2024/1028, strengthening enforcement against illegal rentals, expanding digital administration through the eTurizam platform and updating accommodation classification standards, the government aims to create a more transparent and efficient short-term rental market.

The legislation reflects broader European efforts to improve oversight of the rapidly growing vacation rental sector while supporting sustainable tourism development and fair competition. If the bill receives parliamentary approval, Croatia will enter 2027 with a modernized regulatory system designed to protect consumers, support compliant businesses and preserve the country’s reputation as one of Europe’s leading travel destinations.

For accommodation providers, digital booking platforms and international travellers alike, the proposed reforms signal a new chapter in Croatia’s tourism governance—one that emphasizes accountability, innovation and long-term sustainability in an increasingly digital travel marketplace.