Yes, hosts must register and obtain permits:

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Yes, income earned from short-term rentals in Croatia is taxable. Hosts are required to pay:

Personal Income Tax from Rental Income

Residents of Croatia: If you are a Croatian resident, your rental income is subject to Croatian personal income tax. The tax rates are progressive, with current rates ranging from 12% to 40%. However, you can deduct a lump-sum expense of 30% from your gross rental income before calculating the final tax liability. Foreign Owners (Non-Residents): Non-resident landlords in Croatia are also subject to income tax on their rental earnings. The standard rate is 12%, with the same 30% lump-sum deduction allowed.

Property Tax

Croatia recently introduced a property tax, impacting both residents and foreigners owning real estate. Here’s how it works:

• Tax Rate: The property tax rate is a flat 1.5%.

• Tax Base: The tax is calculated based on approximately 70% of the estimated market value of the property. Local authorities determine the exact market value.

• Exemptions: There may be certain exemptions or reductions in property tax available depending on the type of property, its use, and the owner’s circumstances.

Important Considerations

• Double Taxation Treaties: Croatia has double taxation treaties with several countries that may provide certain tax benefits to foreign owners. Check if your country of residence has a treaty with Croatia.

• Tax Advisors: It’s always wise to consult with a tax advisor specializing in Croatian tax law, especially if you are a foreign owner. They can help you understand your specific tax obligations and optimize your tax compliance.

Croatia requires short-term rental hosts to collect a tourist tax, An additional duty, apart from the taxes, is the membership fee of the local Tourism Association. Every person letting short-term accommodation is by law a member of the Tourism Association of the municipality in which the property is located. Therefore, you need to file an annual membership fee calculation to the Croatian Tax Authorities by the 15th of January of the following year. For taxpayers who pay lump-sum income tax on income from property, the annual membership fee ranges from EUR 3,98 and 10,62 per bed, person or accommodation unit, depending on the kind of accommodation. The fee can be paid in one instalment by the 31stof July of the following year or in three equal instalments by the 31st of July, the 31st of August and the 30th of September of the following year.

Yes, hosts in Croatia are required to register all guests staying in their short-term rental properties with the national E-Visitor system, managed by the Croatian National Tourist Board. This online platform is connected to the Ministry of the Interior, ensuring that guest information is shared with local authorities, including immigration and law enforcement. Registration typically includes submitting guest identification details, check-in, and check-out dates. Failure to register guests can lead to fines, making it essential for hosts to comply with this reporting requirement to maintain their license and ensure compliance with national security protocols.

Croatia mandates health and safety standards for all short-term rental properties. These standards include requirements for fire safety, emergency exits, smoke detectors, and sanitation. Property inspections are typically part of the registration process, and non-compliant properties may be denied licenses or fined until they meet safety standards.

Yes, online platforms have obligations under Croatian law:

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Absolutely, Croatia enforces anti-discrimination legislation:

• Anti-Discrimination Act: Prohibits discrimination based on race, color, sex, language, religion, political or other opinion, national or social origin, property, birth, education, social status, marital or family status, age, health condition, disability, genetic heritage, gender identity, expression or sexual orientation.

• Application to STRs: Hosts must not refuse service based on these protected characteristics.

DAC7 references the EU Council Directive 2021/514, which requires online companies such as Airbnb to collect and report taxpayer information on certain platform users who earn income on the Airbnb platform. If you have a listing for a property located within one of the 27 EU Member States or you are resident in an EU Member State, DAC7 impacts you. A person is “resident” for DAC7 purposes in a country in which the person has their primary address and, in addition, any other country in which the person has been issued with a tax identification number (TIN). So yes, Croatia mandates that short-term rental platforms share data with national authorities. The Croatian government requires platforms to report details about bookings, occupancy rates, and guest information through the E-Visitor system, which is overseen by the Croatian National Tourist Board. This data-sharing requirement helps ensure compliance with tourism laws and supports the collection of tourism taxes. Non-compliance by platforms or hosts with these data-sharing mandates may lead to penalties or restrictions on platform operations within Croatia.

Airbnb suggests that hosts obtain appropriate insurance coverage, including liability insurance, to protect against any damages or accidents that may occur during a guest's stay. Airbnb's own coverage options may not suffice, and personal homeowner or renter insurance policies should also be reviewed. Insurance and Safety Best Practices: Hosts are encouraged to provide safety information, maintain working smoke detectors, and ensure guests have access to emergency contact information.

Yes, Croatia enforces zoning and cultural heritage regulations to protect its historical and culturally significant areas from the impacts of short-term rentals. In cities like Dubrovnik, where historical preservation is crucial, short-term rentals are restricted in specific zones to prevent overcrowding and maintain the integrity of heritage sites. Additionally, these regulations limit rental licenses in certain regions and may require additional permits for properties within UNESCO World Heritage sites.

Croatia has implemented sustainability initiatives for short-term rentals to promote eco-friendly tourism practices. Hosts are encouraged, and in some cases required, to implement waste reduction and energy-saving measures. Additionally, in popular coastal areas, restrictions are placed on certain practices, like excessive water usage, to protect local resources. Environmental agencies oversee compliance with these regulations, particularly in ecologically sensitive regions.

In Croatia, there are two types of rental contracts:

Long-term contract: An indefinite rental period with no set end date.

Short-term contract: A defined period with a clear start and end date.

Basic Renter Rights:

1. Apartment Maintenance:

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◦ Landlords must provide an apartment suitable for living and maintain it throughout the rental period.◦ Before moving in, renters should inspect the apartment for issues, and landlords must fix any problems.◦ After moving in, landlords are responsible for fixing appliances and resolving maintenance issues unless the renter caused the damage.

1. Building Usage: Renters can use common spaces like elevators and shared land. If only part of an apartment is rented, usage of other rooms depends on the contract.
2. Long-term Contract Termination:

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◦ Landlords can cancel the contract if laws are violated, rent is unpaid, or the property is misused, but they must give two written warnings.◦ Renters must give at least 3 months' notice to cancel the contract.

1. Short-term Contract Prolongation: If neither party cancels the contract 30 days before its expiration, it automatically extends.
2. Landlord Visits: Landlords must announce visits and cannot enter without permission.
3. Internet Access: Croatia made internet access a human right in 2015, ensuring renters have the right to it under the Law on Electronic Communications.

Yes, Croatia requires hosts to report foreign guests to national immigration authorities via the E-Visitor system. Hosts must log each guest’s personal information, including passport details, within 24 hours of their arrival. This process ensures that Croatian authorities can monitor and record the presence of international visitors for security and tourism data purposes. Non-compliance can lead to fines or penalties, making it crucial for hosts to comply with these reporting requirements to operate legally.

In Croatia, platforms are required to verify that listings meet national regulations before they can be posted. Platforms like Airbnb and

Croatia’s Consumer Protection Act and other tourism laws ensure that short-term rental contracts, comply with consumer protection standards. These laws mandate that hosts provide clear, accurate information regarding pricing, services, and amenities. Additionally, all STR properties must be registered with the Croatian National Tourist Board, and hosts are required to record guest information in the E-Visitor system for tracking and reporting purposes. The law also requires that any terms and conditions of rentals meet consumer rights guidelines, preventing unfair or misleading practices. These regulations serve to protect the interests of guests while ensuring hosts adhere to quality standards.

Non-resident owners in Croatia must adhere to regulations when operating short-term rentals. They are required to register their properties with the Croatian National Tourist Board and pay income taxes on rental earnings. Non-resident landlords in Croatia are also subject to income tax on their rental earnings. The standard rate is 12%, with the same 30% lump-sum deduction allowed. These measures ensure that non-residents contribute to Croatia’s economy while adhering to the same standards as local hosts. Non-resident owners are also permitted to operate short-term rentals, though they must fulfill the same registration and tax obligations as Croatian residents.

In Croatia, several different types of objects are considered accommodation for the purposes of renting.

The types of accommodation are:

• Objekti (objects)

◦ Sobe (private rooms)◦ Apartmani (private apartments)◦ Kuće za odmor (holiday houses)◦ Objekti za robinzonski smještaj (Robinson accommodation objects)

• Zemljište (land)

◦ Objekti za robinzonski smještaj (Robinson accommodation objects)◦ Kampovi (camps)◦ Kamp-odmorišta (camping rest area)

What is a Robinson accommodation object?

Robinson accommodation objects are accommodations located within nature and include unusual accommodation spaces and conditions. These objects are usually not connected to the water, gas, electricity, telephone, and other infrastructure (but they can be).

During national events or high-tourism periods, Croatia may impose additional regulations on short-term rentals. For example, in Dubrovnik and Split, stricter noise restrictions, curfews, and guest verification policies are often enforced during peak summer festivals. Additionally, there may be temporary limitations on maximum stay lengths, especially during crowded national holidays, to manage visitor flow and maintain public order. Compliance with these regulations is essential for hosts and platforms to avoid fines or operational disruptions.

• Fines for Non-Compliance: Property owners who use their apartments for short-term rentals without the necessary consent face fines ranging from 2,000 to 10,000 euros. This financial deterrent aims to prevent the misuse of residential spaces and ensure compliance with building regulations.

• Protection for Workers: The imposition of these penalties is particularly relevant for foreign workers, as it helps protect them from being placed in unsafe or unsanitary living environments.

Other penalties include property closure orders, potential legal action, and loss of eligibility to operate within the rental market.