Croatian Short-Term Rental Owners Protest Tax Increases Amid Government Efforts to Address Housing Crisis

Short-term rental owners in Croatia protested against proposed tax hikes, claiming the measures unfairly target low-income earners and threaten their livelihoods. The government argues the changes aim to tackle a housing crisis driven by tourism demand.

Owners of short-term rental properties gathered in protest in Zagreb on Saturday, 23rd November, opposing the Croatian government’s proposed draft laws aimed at addressing a tourism-related housing affordability crisis.

The legislation, which was approved by lawmakers last week but awaits final approval following broader consultations and potential amendments, includes measures to raise taxes on short-term rental properties and increase the lump-sum tax on tourist rentals. However, long-term rental properties remain unaffected.

Protesters argued that renting out properties is a vital source of income for many, helping pensioners and their families avoid poverty. "We have gathered here to express our opposition to the entire legal package proposed by our government with the sole and exclusive aim of reducing the number of beds in our property. These laws are anti-social and hit those with the lowest incomes the hardest," said Vedran Tomac, a protester from Rijeka.

Brankica Grmoja, from the coastal resort town of Makarska, highlighted how the laws would hurt families like hers. "My father started building it (house) when he was 18 years old. They (her parents) together have a (monthly) pension of 1100 euros, and they both worked full time. If it weren't for that, they would be just poor, and like this, they can go to restaurants, go on trips," she explained.

Tourism is a cornerstone of Croatia's economy, contributing around 20% of the nation’s GDP, with millions of visitors arriving annually. Approximately 125,000 people are employed in the home rentals sector.

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