July the 2nd, 2026 – Croatian short-term rental owners who work in the tourism sector are furious and have staged a revolt against a new law they feel unfairly targets them at their most profitable time of year.
A group representing small family rental owners in Croatia has launched an urgent appeal against a proposed new hospitality law, warning that it could threaten the livelihoods of more than 110,000 registered rental families across the country.
is this unconstitutional? some claim yes…
Index reports that the association “Save Small Family Renters” (SMOi) has sent letters to the Croatian Parliament, parliamentary groups, and key committees, demanding that the vote on the proposed Law on Hospitality Activities be postponed and that certain provisions they consider harmful and unconstitutional be removed.
One of the biggest points of controversy is what renters describe as a “neighbour veto”, which is a rule that would require apartment owners who rent to tourists to obtain written approval from other co-owners in their building before continuing to operate. According to the association, neighbours would not be required to explain a refusal, and there would be no right of appeal.
The group argues that this requirement unfairly targets tourist renters because similar restrictions do not apply to other businesses operating in residential buildings. SMOi also claims that the proposed law could retroactively affect existing rental permits. Under the new rules, owners who fail to obtain neighbour approval could lose permits they have already legally received from the state, even if they have been operating for years. The association says this would violate constitutional protections of acquired rights and could potentially expose Croatia to legal challenges under European human rights law.
New Reclassification Rules Raise serious Concerns
Another controversial part of the proposal is mandatory reclassification of rental properties every single decade. The exact future requirements would be determined later through additional regulations.
SMOi warns that thousands of existing rental approvals could be placed under uncertainty and that the administration may not have enough staff or resources to process such a large number of reviews. The association also objects to rules that they say could prevent small renters from professionalising their businesses. They argue that people who want to move from private rental activity into a registered business structure could lose the ability to legally rent apartments located in residential buildings.
Different Rights Depending on Location
The proposed law would also create differences between renters depending on where they live and what type of property they operate. SMOi has stated that owners who don’t have permanent residence in the same county as their rental property, as well as some apartment-building renters, could lose certain rights associated with being recognised as a “host.” The group argues that two people offering the same service in the same town could end up with different rights simply because of their home address.
SMOi says the government failed to provide sufficient economic, social, or financial impact analysis before introducing legislation affecting so many families and local tourism economies. The association is therefore calling on lawmakers to reject the proposal in its current form and return it for further review, with more transparent consultation and analysis.
“Tourism that doesn’t benefit Croatian citizens shouldn’t even exist,” the group concluded.
