Croatia is set to become the latest European country to tackle a tourism-related housing shortage, although some landlords fear the proposed legislation could hurt their business.
A package of draft laws was approved by the Croatian parliament last week, but final national legislation will only be adopted following a wider debate and likely amendments.
Cities such as Malaga and Barcelona in Spain, Athens and Budapest have put the brakes on short-term rentals in order to alleviate the housing shortage and reduce prices for the local population.
These measures taken in popular tourist destinations could have an impact on platforms such as Airbnb and Booking.com.
This year, the city of Dubrovnik, a tourist trap on the Croatian coast, banned the granting of new private rental permits in its historic old town to prevent young people from leaving due to high costs.
Croatian Finance Minister Marko Primorac said the laws will increase taxes on rental houses and the flat tax on tourist rentals, but will not affect housing units in which people live long-term. term or in which people live in their own property.
Some residents say the move will allow them to rent at market rates and breathe life back into towns where apartment buildings fill up only during the holiday season.
“What bothers citizens of Split, Dubrovnik and other coastal towns is that they are being emptied of their residents,” said Zaklina Juric of the Tenants Together initiative.
“There are no more shops in the center, the city is dead and someone must finally recognize that,” Zaklina Juric said of the new laws, which the group supports.
Tourism accounts for around 20% of Croatia's gross domestic product (GDP), and around 125,000 people are employed in the accommodation rental sector. And some of those who rent their properties short-term are concerned about the proposed legislation.
“Apartment owners are panicking, many of them have taken out loans, invested in the apartments, logistics that will be challenged by this new law,” said Jurica Lepinc, owner of a rental agency in Zagreb , the capital of Croatia.
Klaudia Kapural, who rents her apartment in Zagreb through an agency, said taxes would skyrocket. She criticized a provision under which 80% of tenants will have to agree on rent in residential buildings, saying it will be difficult to achieve.
“Many apartments will be closed, prices … will probably increase by 20 percent next year,” said Natasa Luketic, who also rents an apartment.
