Croatia – Property Letting

How does the property letting process work in Croatia?

Renting out a residential property in Croatia follows a structured sequence governed principally by the Zakon o najmu stanova (Law on the Lease of Apartments). Before putting a property on the market, landlords should confirm that it meets minimum habitability requirements and secure an energy certificate, which must be made available for inspection by any prospective tenant or buyer.

Properties are typically advertised through online listing portals such as Njuš, through real estate agencies, and through personal networks. Tenant screening is largely an informal affair — there is no centralised tenancy register or credit referencing system comparable to those operating in other parts of Europe — so landlords generally assess prospective tenants by reviewing employment documents, recent payslips, and personal references before proceeding to contract.

A written tenancy agreement sets out the rent, the rights and responsibilities of each party, and the notice periods that apply. Under this arrangement, the landlord undertakes to make the property available for the tenant’s use, and the tenant in turn agrees to pay the agreed rent throughout the tenancy period.

Any enforceable ugovor o najmu stana (rental contract) must be drafted in Croatian. Bilingual versions combining Croatian with another language are permitted, but in any dispute it is the Croatian text that carries legal weight. In contrast to legal systems in some common-law countries, where an oral agreement may create binding obligations, a verbal tenancy arrangement in Croatia is not enforceable before a court.

Where either party is a foreign national, the contract should be notarised by a javni bilježnik (notary public), as this is required when registering an address with the police. Landlords renting to overseas tenants should obtain notarised contracts in any event to ensure the agreement can be relied upon legally. Following execution of the contract, landlords are obliged to declare their rental income to the Croatian Tax Administration.

Standard long-term tenancy agreements in Croatia are typically concluded for a period of one year, with any continuation or renewal negotiated between the parties. Any rent adjustment must be mutually agreed; in practice, because most agreements run for just twelve months, landlords are able to revise rental amounts each time a new agreement is entered into.

What types of rental arrangements are available in Croatia — long-term, short-term, and holiday lets?

Croatian law draws a firm distinction between long-term residential letting and short-term tourist accommodation, with each category subject to its own regulatory framework, licensing conditions, and tax rules. That distinction has sharpened considerably in the wake of extensive legislative reform introduced in 2025.

Long-term residential letting falls under the Law on the Lease of Apartments. Such tenancies normally run for twelve months or more, with rents set by agreement between the parties, and the landlord’s key obligations centring on maintaining the property in a habitable state. Income from this type of letting is subject to a straightforward flat-rate tax regime, as described in the tax section below.

Short-term and holiday letting — through platforms including Airbnb and Booking.com — was until recently one of the most commercially significant segments of the Croatian rental market. Estimates suggest that roughly 40% of Croatia’s housing stock has at some point been channelled into short-term tourist rental rather than long-term residential use, a trend that has tightened availability for local residents and contributed to rising prices that have driven people out of larger cities.

In the summer of 2025, Croatia passed new tourism and property-rental legislation designed to curb the expansion of short-term holiday lettings along its coastline. The reforms introduce more stringent controls on private holiday rentals and are intended to encourage property owners to convert short-term units back into longer-term housing.

Among the most significant changes under the 2025 legislation is the rule applying to apartments within multi-unit residential buildings. Owners wishing to continue using such apartments for tourist lettings must now obtain the written consent of at least 80% of their fellow building residents. The law also redefines the concept of a “host” to mean someone with their permanent registered address within the same local administrative unit as the rental property — a change that prevents landlords living nearby but outside that unit from accessing the benefits associated with traditional host status, even where the properties are in close geographical proximity.

Croatia additionally requires all tourist accommodation providers to report the personal details of foreign guests — including passport information — to national immigration authorities through the eVisitor system within 24 hours of each arrival. This obligation ensures that authorities can maintain accurate records of international visitors for both security and tourism statistical purposes.

What rental income can landlords expect in Croatia, and how are rates set?

Croatia does not operate rent controls, rent pressure zones, or any form of statutory rent indexation for private residential lettings. There is no ceiling on the rent a landlord may charge, and market conditions — chiefly local supply and demand — determine what is achievable in any given area.

Achievable rental levels vary widely by location. Zagreb, Split, and Dubrovnik consistently attract the highest rents, especially for well-positioned furnished apartments in central neighbourhoods. Coastal areas throughout Dalmatia and Istria benefit from intense seasonal tourist demand, which has historically exerted strong upward pressure on rents — a dynamic that the 2025 reforms are directly seeking to moderate.

A combination of robust demand, inflationary pressure, elevated property purchase prices, and constrained supply has led to a cooling in the pace of growth in the residential real estate market. A comparable shortage of available commercial and office premises is also evident, most acutely in Zagreb.

There is no national authority that publishes standardised reference rents. Landlords and their agents typically gauge appropriate asking rents by surveying comparable local listings, seeking valuations from local agencies, and checking platforms such as Njuš and Crozilla. Consulting a local letting agent and reviewing live market data before settling on a rental figure is strongly recommended. Rental figures shift regularly, so always verify current levels through up-to-date local sources.

Do landlords need to provide a furnished or unfurnished property in Croatia?

Croatian law does not impose any obligation on landlords to supply a furnished property for long-term residential letting. The position is governed by whatever the parties agree in the tenancy contract. Where the contract is silent on the matter, the expectation is that the tenant will provide their own furniture and principal appliances.

In practice, however, the Croatian rental market — particularly in Zagreb and other major cities — has a strong established culture of furnished lettings. Furnished properties generally command higher rents and attract a broader range of prospective tenants, including those relocating internationally. For short-term tourist accommodation, a fully furnished and properly equipped property is effectively a commercial necessity.

It is advisable to include in the tenancy contract a comprehensive list of all appliances and equipment supplied with the property — televisions, washing machines, refrigerators, and similar items. Having these recorded in the agreement gives the tenant a clear basis for seeking repair or replacement should any appliance fail, particularly if the landlord is reluctant to act. Landlords should prepare a detailed, jointly signed inventory of all furnishings and fittings at the commencement of the tenancy to minimise the risk of disagreement when the tenancy comes to an end.

The level of furnishing provided does not directly affect the income tax rate applicable to long-term residential lettings. However, properties used for tourist accommodation must satisfy official categorisation criteria that specify minimum standards of equipment and furnishing. Landlords should consult the relevant local government office or the Ministry of Tourism for the current categorisation requirements.

Do you need a licence or registration to let a property in Croatia?

The registration and authorisation requirements differ considerably depending on whether a property is let on a long-term residential basis or as tourist accommodation.

Long-term residential letting: No separate landlord licence is required to let a property for long-term residential purposes. Landlords are, however, obliged to declare rental income to the Croatian Tax Administration and to register as taxpayers. Following the amendment to the VAT law that came into force on 1 January 2025, the tax registration obligations of non-resident and domestic landlords were equalised. Non-resident landlords must now register in the tax register within 8 days of commencing any rental activity.

Short-term tourist letting: This model requires a formal Decision on Authorisation permitting the provision of hospitality or domestic accommodation services. Once a resident citizen has obtained this Decision from the relevant Office of Public Administration — or from the City Office for Economy in the case of Zagreb — they are required to submit a copy of it to the competent Tax Administration Local Office within 8 days of issue, in order to complete registration in the taxpayers’ register.

To operate as a tourist rental provider, the property must be formally registered and a categorisation certificate obtained from the appropriate authorities, confirming that the accommodation meets the prescribed standards for the relevant property type.

For apartments located in multi-unit residential buildings, further requirements apply. Owners who wish to continue letting their apartments to tourists will need to secure the consent of at least 80% of fellow building residents within a five-year transition period. Landlords should always confirm current requirements directly with their local municipality (općina) or city office, as procedures and thresholds remain subject to change.

How do you obtain a landlord licence or register as a landlord in Croatia?

The procedures differ depending on whether the property will be let on a long-term residential basis or as short-term tourist accommodation. Both routes are described below. Always verify current documentation requirements, applicable fees, and procedures with the relevant authority, as these are subject to periodic revision. The official Croatian Tax Administration website is at porezna-uprava.gov.hr and the official government portal at gov.hr.

Registering for long-term residential letting

1. Execute a written tenancy agreement in Croatian (bilingual versions including another language are permitted). Where either party is a foreign national, the contract should be notarised by a javni bilježnik (notary public).
2. Register with the Croatian Tax Administration by completing the RPO form and submitting it to your local Tax Administration office within 8 days of the rental activity commencing. This obligation applies to non-resident landlords based outside Croatia just as it does to domestic landlords.
3. Obtain a tax identification number (OIB) if you do not already hold one. Foreign nationals can apply for an OIB through the Croatian Tax Administration or in connection with a property purchase transaction.
4. Declare rental income annually. The Tax Administration will issue a tax assessment, and payment is made in accordance with that notice.

Registering for short-term tourist letting

1. Apply for a Decision on Authorisation to provide hospitality domestic services at your local Office of Public Administration (or the City Office for Economy in Zagreb). You will need to present evidence of property ownership, proof of identity, and information about the accommodation.
2. Obtain a categorisation certificate confirming that your property satisfies the required standards for the category of accommodation in question (apartment, room, holiday house, and so on).
3. Lodge a copy of the Decision with the competent Tax Administration Local Office within 8 days of its issue, in order to be entered in the taxpayers’ register. The RPO Form must be completed and submitted alongside the copy of the Decision.
4. Enrol in the eVisitor system to meet the requirement to report guest arrivals to national immigration authorities, which applies to all tourist accommodation operators.
5. Determine your VAT position: Non-resident landlords must register in the tax register within 8 days of commencing rental activity. The small business tax exemption is available for annual revenues up to €60,000 but must be accessed through the cross-border scheme. This exemption is available regardless of whether the landlord lets directly or through an intermediary platform.

Processing times for categorisation certificates and authorisation decisions can vary significantly between municipalities. Fees charged by local government for categorisation inspections may apply; consult the relevant official website for current figures as these are updated from time to time.

What are the rules around deposits in Croatia?

Croatian law does not stipulate a maximum deposit amount. In practice, deposits in the private rental market tend to fall between one and two months’ rent, and are customarily paid by the tenant at the point of signing the tenancy agreement.

Unlike the statutory tenancy deposit protection frameworks that exist in countries such as the United Kingdom and Ireland — where landlords are required by law to register a tenant’s deposit with an independently operated, government-approved scheme within a defined time frame — Croatia has no equivalent national mechanism. The terms governing the deposit are instead a matter for the landlord and tenant to agree between themselves. In practice, no interest accrues on the deposit in favour of the tenant, and there is no requirement for the landlord to hold it in a separate designated account.

Because the deposit is held directly by the landlord and its return hinges entirely on the conditions set out in the tenancy agreement, it is essential that both parties specify clearly in the contract the circumstances in which deductions may be made — such as unpaid rent or damage exceeding fair wear and tear — along with the timeframe within which the deposit must be returned once the tenancy has ended. A detailed inventory signed by both parties at the start and conclusion of the tenancy remains the most effective safeguard available to landlord and tenant alike.

No statutory cap on deposit amounts is currently in force in Croatia, though the market convention of one to two months’ rent is widely observed. Check the official government portal for any legislative updates affecting deposit rules, as Croatian tenancy legislation has been undergoing sustained reform.

Who is responsible for maintenance and repairs in Croatia?

Under Croatian law, the primary duty to keep the rented property in a condition fit for habitation falls on the landlord. The landlord is obliged to maintain the apartment in a proper state for use throughout the tenancy and to carry out any necessary repairs within a reasonable time, at the landlord’s own cost. Where a tenant has had to commission urgent repairs themselves — or has done so because the landlord failed to act after being notified — the landlord is required to reimburse the tenant for those reasonable repair costs.

The obligation to hand over a property that is genuinely suitable for residential use, and to keep it in that condition throughout the tenancy, is a baseline statutory requirement that cannot be excluded by contract.

The tenant’s obligations run in the opposite direction. Tenants must take reasonable care of the property and are not permitted to make alterations to the apartment, shared areas, or building installations without the landlord’s prior written consent. Tenants are also required to notify the landlord of any repairs needed, whether to the apartment itself or to shared parts of the building; they are legally liable for any damage they cause in accordance with the general law.

In practical terms, landlords bear responsibility for structural repairs, heating infrastructure, and the upkeep of installed fixtures and fittings, while tenants are expected to maintain cleanliness and attend to minor day-to-day matters. This broad allocation of responsibility is consistent with practice in many continental European jurisdictions, though the dividing line between structural and routine maintenance is less precisely defined in Croatian law than in some other systems, making it worthwhile to address these matters explicitly in the tenancy agreement.

It is worth noting that while basic rights and obligations are set out in statute, their practical enforcement is not guaranteed. In more serious disputes, engaging a lawyer may be the only effective means of compelling compliance with the law.

How are letting agents used in Croatia, and what do they charge?

Letting agents (agencija za nekretnine) are widely active across Croatian cities, most notably in Zagreb, Split, and Rijeka. Their services typically encompass property marketing, sourcing and vetting of tenants, conducting viewings, preparing tenancy contracts, and in many cases ongoing property management — a particularly valuable service for landlords who are based outside Croatia.

Unlike the United Kingdom and Ireland, where legislation imposes restrictions or caps on fees that may be charged to tenants, Croatia has no nationally regulated fee structure governing letting agents. Fees are market-determined and negotiated between the agent and their client. It is common in Croatia for agency commission to be split between landlord and tenant, with each party typically contributing the equivalent of one month’s rent, though this is not universal — some agents charge their fee solely to the landlord.

Full-service property management offerings — encompassing rent collection, maintenance coordination, utility management, and guest handling for short-term lets — are available from specialist firms, particularly in tourist destinations along the Dalmatian and Istrian coasts. Management fees for comprehensive holiday rental services generally range from 20% to 30% of gross rental income, though the precise figure varies by operator and location. Always obtain a written schedule of fees before committing to an agent or management company, and verify current market rates directly, as charges fluctuate. As of 2025, standard figures should be confirmed with local agents. The Croatian Chamber of Commerce (hgk.hr) and the Croatian Real Estate Association are useful references for guidance on professional standards in the sector.

What taxes apply to rental income in Croatia?

The tax treatment of rental income in Croatia depends on the nature of the letting — residential versus tourist — and on the landlord’s tax residency status. The framework is comparatively straightforward for long-term residential income, where a clear flat-rate regime applies.

Long-term residential letting

A standard deduction of 30% is automatically applied to gross rental income to account for associated expenditure — no receipts or supporting documentation are required to claim this deduction. The remaining 70% of gross rental income forms the taxable base, to which a flat rate of 12% is applied. No personal allowance is available against this income. Tax is assessed and collected by the Croatian Tax Administration (as of 2025).

This streamlined approach makes compliance relatively simple for most landlords without complex expenditure arrangements, since the lump-sum deduction removes the need for detailed expense accounting.

Short-term tourist letting

Income from tourist lettings is subject to a flat-rate tax calculated on a per-sleeping-unit basis rather than as a percentage of gross revenue. The applicable rate varies by municipality and is tied to the local tourism development index, ranging from €19.91 to €199.08 per sleeping unit. These figures reflect 2024–2025 rates; landlords should always verify the current rate with their local tax office, as amounts are periodically updated.

Property tax

A new property tax came into force in January 2025. The charge ranges from €0.60 to €8.00 per square metre per year, with the exact rate determined by each local municipality, which may establish multiple zones carrying different rates within its boundaries. The tax does not apply to a property that serves as the owner’s primary residence.

Non-resident landlords

Non-resident landlords earning rental income from Croatian property are subject to Croatian income tax on those earnings. The rate is 12%, and the same 30% lump-sum deduction applies as for resident landlords. The 2025 amendments to the VAT law formally equalised the tax treatment of non-resident and domestic landlords. Non-resident landlords are required to register in the tax register within 8 days of commencing any rental activity.

Rental income derived from residential lettings is exempt from VAT. Where non-residents let property located in Croatia for non-residential purposes, they are treated as VAT obligors by default and are required to account for VAT at the applicable rate of 25% or 13% depending on the nature of the service provided.

Croatia maintains double taxation treaties with a substantial number of countries. Non-resident landlords — and particularly those from outside the EU — should consult the Croatian Tax Administration (Porezna uprava) and seek advice from a qualified local tax professional, given the complexity of cross-border tax matters and the volume of legislative change since 2025.

What are the rules around ending a tenancy or evicting a tenant in Croatia?

Croatian tenancy law establishes specific procedures for bringing a tenancy to an end, distinguishing between termination by the landlord and by the tenant and between situations where there is fault on the tenant’s part and those where there is not.

Tenant-initiated termination: A tenant may bring an open-ended tenancy to a close, but must give the landlord written notice of at least 3 months before the intended vacation date.

Landlord-initiated termination with cause: A landlord may terminate the tenancy agreement — following written notice and a 30-day period for the tenant to remedy the problem — in circumstances where: the tenant has not paid rent and other agreed housing costs within the agreed timeframe; the tenant has sublet without the landlord’s authorisation; the tenant or other occupiers are causing disturbance to other residents; the apartment is being used by a person not named in the tenancy agreement for more than 30 days without the landlord’s permission; or the property is being used for purposes other than residential occupation. The written termination notice must specify the reasons and set a vacation deadline of no fewer than 15 days.

Non-payment of rent: Where a tenant has failed to pay rent on two consecutive occasions, the landlord may terminate the tenancy without being required to observe the usual notice period. However, the agreement remains in force if the tenant pays all outstanding amounts before receiving formal notice of termination.

Repeated breaches: If a tenant has acted in breach of the tenancy agreement or the Law on the Lease of Apartments on more than two occasions, the landlord may terminate the agreement without issuing a prior written warning.

Formal eviction proceedings in Croatia are conducted through the civil courts and must follow due legal process. Tenants are entitled to proper notice and a reasonable opportunity to address any breach before court action can be initiated. Court-based eviction proceedings can be protracted — delays are particularly associated with Zagreb’s courts. Landlords confronted with a tenant dispute are strongly advised to instruct a qualified Croatian lawyer at the earliest stage. The Zakon o najmu stanova (Law on the Lease of Apartments) is the primary source of statutory authority and is available through the official Croatian legislative portal.

What should expat landlords know about managing property remotely in Croatia?

Remote management of a Croatian rental property is a common situation — particularly for owners of coastal and holiday properties — but it demands careful attention to legal and administrative preparation before the tenancy begins.

Power of attorney: Foreign landlords who cannot regularly be present in Croatia should consider granting a punomoć (power of attorney) to a trusted person or professional based in the country. This authorises an agent, solicitor, or property manager to execute contracts, interact with public authorities, and oversee day-to-day operational matters on the landlord’s behalf. The power of attorney should be notarised by a notary public and, where prepared in another country, should carry an apostille for recognition in Croatia.

Property management companies: A well-developed market in property management services exists across Croatia, with particular concentration in the coastal tourist regions. Management firms typically cover tenant sourcing, contract administration, rent collection, maintenance oversight, utility registrations, and — for short-term holiday lets — guest reception and eVisitor registration. It is essential to select a reputable and properly licensed operator; credentials can be verified through the Croatian Chamber of Commerce.

Tax registration and compliance: Following the VAT law amendments that took effect on 1 January 2025, non-resident landlords are subject to the same tax registration requirements as their domestic counterparts. All non-resident landlords must register in the tax register within 8 days of commencing rental activity. Non-residents should obtain an OIB (personal identification number) and complete registration with the local Tax Administration office before or immediately upon beginning to let the property.

Double taxation treaties: Croatia has entered into double taxation agreements with a significant number of countries. Non-resident landlords should establish whether a treaty is in force between Croatia and their country of residence, as this may eliminate or reduce the risk of being taxed twice on the same income. Advice from a tax professional experienced in international matters is strongly recommended.

Repatriation of income: Since joining the eurozone in January 2023, Croatia has used the euro, which simplifies income transfers within the EU. There are no restrictions on transferring rental proceeds out of Croatia for EU/EEA nationals. Landlords from outside the EEA should verify whether any exchange control considerations apply in their home jurisdiction. Cross-border tax and currency matters should always be reviewed with a qualified adviser.

Frequently Asked Questions

Can a non-resident own and let property in Croatia?

Yes. Foreign nationals — including non-EU citizens, subject to reciprocity conditions and any restrictions on agricultural land — can own property in Croatia and let it to tenants. The rights and obligations of non-resident foreign landlords have been brought into line with those of domestic landlords, giving all property owners — particularly smaller individual landlords — an equal footing in the rental market. Non-resident landlords must register with the Croatian Tax Administration within 8 days of commencing any rental activity (as of 2025).

Do I need a local agent to let my property in Croatia?

There is no legal requirement to engage a local letting agent for long-term residential lettings. For non-resident landlords in particular, however, appointing a local agent or property management company is strongly advisable for day-to-day management, tenant communication, and ensuring compliance with registration and reporting obligations. For short-term tourist lets, having local management in place is practically indispensable for meeting eVisitor guest reporting requirements and handling property turnovers between bookings.

Is rental income from Croatian property taxed in Croatia even if I live abroad?

Yes. Non-resident landlords earning rental income from property in Croatia are liable to Croatian income tax on those earnings. The applicable rate is 12%, with the same 30% lump-sum deduction available as for resident landlords, making the effective rate 12% on 70% of gross rental income (as of 2025). Where a double taxation treaty exists between Croatia and your country of residence, you may be entitled to relief to avoid being taxed twice on the same income. Always seek advice from a qualified tax professional for your particular circumstances.

Is there rent control in Croatia?

No. Croatian law places no restrictions on the rent a landlord may charge for private residential lettings. Rental levels are arrived at by free negotiation between landlord and tenant, which makes Croatia a comparatively open market by European standards. There are no rent pressure zones, statutory caps, or mandatory indexation requirements in force for private-sector tenancies (as of 2025).

How much deposit can I charge a tenant in Croatia?

There is no statutory cap on the deposit amount under Croatian law. In practice, the norm in the private rental sector is a deposit equivalent to one to two months’ rent. Unlike the UK’s tenancy deposit protection scheme, Croatia has no mandatory government-backed registration requirement for deposits, so the conditions governing the deposit are entirely a matter for the rental contract. It is essential to record all deposit terms clearly in writing.

Can I let my apartment in a residential building on Airbnb in Croatia?

This is now subject to substantial new restrictions. Under legislation enacted in 2025, owners of apartments within multi-unit residential buildings must obtain the written consent of at least 80% of other residents in the building before continuing to offer the apartment for tourist rental. Furthermore, to benefit from the tax treatment reserved for “hosts,” the landlord must be registered as permanently resident in the same local administrative unit as the rental property. Requirements in this area are actively evolving, and you should check current obligations with your local municipality and the Ministry of Tourism before proceeding.

What is the new property tax in Croatia, and does it affect foreign landlords?

Property tax was introduced in Croatia with effect from January 2025. The charge ranges from €0.60 to €8.00 per square metre per year, with rates set by individual local municipalities, which may create multiple zones with differing rates within their boundaries. The tax is not levied on a property that constitutes the owner’s primary residence. Both resident and non-resident foreign property owners are affected wherever their Croatian property is not their principal home.

How long does an eviction take in Croatia if a tenant refuses to leave?

Pursuing a formal eviction through the Croatian courts can be a slow and drawn-out process. Tenants have the right to proper notice and a reasonable opportunity to resolve any issues before court proceedings can be commenced, and once litigation begins, hearings can take many months — particularly in Zagreb, where court delays are well documented. Landlords should always follow the prescribed legal notice procedures, record everything in writing, and engage a qualified Croatian lawyer from the moment a dispute emerges to ensure they are in the strongest possible position throughout.