Glavina presented the new Hospitality Activity Act: stricter oversight of short-term rentals and digital accommodation registration

Glavina presented the new Hospitality Activity Act: the state is introducing stricter oversight of short-term rentals and digital accommodation registration

Minister of Tourism and Sports Tonči Glavina presented on 17 April 2026 the Draft Proposal of the new Hospitality Activity Act, a document through which the Government seeks to establish a firmer regulatory framework for the accommodation, hospitality and related tourism services market. At the heart of the proposal are the suppression of unregistered short-term rentals, the implementation of European Regulation (EU) 2024/1028 on the collection and sharing of data relating to short-term accommodation rental services, the full digitalisation of administrative procedures, and changes to the property classification system. This is one of the more significant interventions in tourism legislation in recent years, especially because it attempts to address several parallel problems: the growth of platform-based accommodation, unfair competition on the market, administrative opacity, and the increasingly pronounced need of the state to monitor the actual situation in the sector more precisely.

The current Hospitality Activity Act was adopted in 2015, and since then it has been amended and supplemented nine times. In the meantime, the Croatian tourism market has changed substantially. Short-term rental of private accommodation has grown strongly, digital platforms have become the dominant channel for advertising and reservations, and public authorities have increasingly openly warned about the grey area of business operations, namely situations in which accommodation is rented out without a valid permit or outside the rules that apply to registered service providers. The Ministry of Tourism and Sports therefore argues that partial amendments are no longer sufficient and that a new, comprehensive law is needed that will consolidate the changes made so far and adapt the system to European rules and domestic development goals.

The central message of the law: a blow to unregistered accommodation

The greatest political and operational emphasis has been placed on the fight against unregistered short-term rentals. Minister Glavina presented the proposal as the most serious attempt so far by the state to reduce the space for the black and grey economy in the tourism sector. According to the draft, a single registration procedure for renters is being introduced, as well as a mandatory registration number for each accommodation unit. It is precisely this number that should become the key point of the new system, because without it advertising on online platforms should not be possible.

Such a model is closely connected to the European STR regulation, namely Regulation (EU) 2024/1028, which imposes on Member States the obligation to establish a more reliable system for collecting and sharing data on short-term rentals. The aim of the regulation is not only administrative record-keeping, but the creation of a standardised framework in which the competent authorities will be able to identify more accurately who is renting, which unit is being rented, and under what conditions they operate. The European rules apply from 20 May 2026, so the Croatian law is appearing at a time when the state must ensure its own implementation mechanism. In this context, the Ministry states that the registration number and digital monitoring of advertisements are intended to close the space for the practice in which properties that are not formally recorded appear on the market and yet compete with legal renters.

For registered renters, the new rules should, at least according to the interpretation of the proposers, mean more equal market conditions. Those who have already been operating in accordance with the regulations have for years warned that unregistered accommodation drives prices down, avoids the costs of fees and taxes, and creates imbalance among service providers. On the other hand, for part of the market the new model also brings additional obligations, especially in the part relating to adaptation to digital registration, alignment of documentation, and monitoring of new procedures. It is precisely the content of the public consultation that will show whether the sector will perceive these measures primarily as a tool for organising the market or as a new administrative burden.

A wider circle of supervision: in addition to the inspectorate, the Customs Administration and municipal wardens are also being included

One of the most practically significant innovations concerns supervision. According to the proposal presented by the Ministry of Tourism and Sports, supervision over the provision of hospitality services without an obtained permit would no longer be only the job of the State Inspectorate. The Customs Administration and municipal wardens would also be involved in the implementation. Such an expansion of competences suggests that the state wants to treat the problem of unregistered work more broadly than before, that is, to connect tourism, fiscal and local supervision.

This change has several possible consequences. First, the probability of detecting illegal business activity increases because the control mechanism no longer relies exclusively on one institution. Second, the local level gains a greater operational role, which is important in destinations with heavy short-term rental pressure. Third, the message is strengthened that unregistered renting is not viewed only as an administrative omission, but also as a matter of a fair market, fiscal discipline and the relationship to space. The State Inspectorate already has within its remit supervision over hospitality activity, unregistered provision of services and tourist tax, but the inclusion of additional bodies points to the intention to make the implementation of the law faster and more visible in the field.

Digitalisation of procedures and the Central Register as the backbone of the new system

The second major pillar of the reform is digitalisation. The Ministry announces that all administrative procedures, from submitting requests for classification to issuing decisions, would be conducted digitally through the Central Register. Formally speaking, this is a modernisation of public administration; in substance, it is an attempt to consolidate data that until now have often been scattered across different procedures, levels of government and records.

For hospitality operators and renters, the digital system could bring faster submission of applications, fewer physical visits to institutions, and a clearer trace of the status of the procedure. For the state and competent authorities, such a register means easier linking of data on the property, category, decision, fees and any irregularities. In theory, this opens up space for a more transparent and efficient system. In practice, however, much will depend on the technical implementation, the interoperability of databases, and how simple the system will be for users who are not used to more complex digital procedures. In recent years, Croatian public administration has significantly expanded digital services, but experience shows that the success of such reforms depends not only on the regulation, but also on the quality of implementation.

Reclassification becomes more regular for apartments, rooms and holiday homes

The draft law also brings a new dynamic to reclassification, which is particularly important for the segment of private and smaller accommodation. For the group of other hospitality accommodation facilities, including rooms, apartments, studio apartments and holiday homes, mandatory reclassification is introduced every ten years. For hostels, mountaineering and hunting lodges, overnight accommodations and similar facilities, a period of five years is envisaged. For renters, the obligation of reclassification every ten years is also introduced after alignment with the new ordinance. At the same time, for hotels and campsites the period is extended, so instead of the current reclassification every four years it would be carried out every five years.

This redistribution of deadlines shows that the Ministry wants to direct greater quality control toward that part of the market which has expanded the most in recent years and in which the differences between the formal category and the actual condition of the property are often the subject of debate. The idea is, according to the minister, that classification should not be a one-off administrative act, but an instrument that truly reflects the current condition of the property and the level of maintenance of standards. This simultaneously protects the consumer and seeks to raise the average quality of the offer. For some renters this will mean additional investment in furnishing and compliance, while others will probably welcome these changes as a way for the market to distinguish more clearly between quality and neglected offers.

Residential properties, agritourism and redefining certain business rules

In addition to the issues of supervision and registration, the draft also envisages several targeted interventions in the existing business rules. Among the more notable provisions is the deletion of the possibility of issuing permits to hospitality operators in residential buildings for apartments and rooms. Although the final interpretation of that provision will depend on the normative text and the explanation in the consultation, the political message is clear: the state wants to define more precisely what is permitted in the housing stock and what belongs to classic hospitality business.

At the same time, the possibility is opened for a hospitality operator who is entered in the Register of Farmers as an agricultural holding, whether it is a company, a trade business or another form, to also use a commercial name such as tourist agricultural holding or agritourism. This part of the proposal is especially important for rural and continental tourism because it gives such entities a clearer identity and market framework. Croatia has for years been trying to strengthen the dispersion of the tourism offer outside the coast and the main season, so every normative clarification that facilitates the recognisability of the agritourism offer also has a development dimension.

Energy drinks and tourist tax as additional points of regulation

The draft law also envisages a ban on serving, that is, allowing the consumption of energy drinks in hospitality establishments. This is a measure that goes beyond the narrow framework of tourism administration and enters the area of consumer protection and public health, and it is therefore likely to attract part of the broader public debate. At this moment, the Ministry has announced the ban as part of the package of new solutions, but further discussion will show which types of establishments, age groups or situations the provision will specifically apply to and how its implementation will look in practice.

Additionally, a new reason is prescribed for revoking a permit from a hospitality operator and renter if it is established that they do not pay the tourist tax. This provision fits into the broader direction of tourism policy in which the state is trying to link more strongly the right to provide a service with the proper fulfilment of financial obligations. In the legislative activities plan of the Ministry of Tourism and Sports for 2026, it has already been indicated that there are problems with the effectiveness of enforced collection of tourist tax, so the new Hospitality Activity Act is evidently intended to be part of a broader package regulating fiscal discipline in the sector.

Sustainable tourism, affordable housing and the political background of the legislative amendments

Glavina placed the proposal within the framework of sustainable tourism and affordable housing policies. This is a formulation that shows how the issue of short-term rentals is no longer viewed only through the number of overnight stays and tourism revenue, but also through the impact on local communities, housing prices and the availability of housing stock. In European cities and tourist regions, precisely the relationship between the growth of platform-based accommodation and pressure on housing has become one of the key political issues, and Croatia is now trying to respond through its own legislation to similar challenges in its destinations.

It should be noted, however, that the European regulation in itself does not prescribe national housing policies or rental quotas. Above all, it standardises data transparency and the obligations of platforms and Member States. But it is precisely better records and data exchange that create the precondition for national authorities and local self-government units to be able to make informed decisions about the market at all. In other words, without reliable data it is difficult to seriously discuss what the actual share of short-term rentals is, where they are most concentrated, and what effect they have on the local population, municipal infrastructure and housing availability.

What follows after the presentation of the draft

The Draft Proposal of the Hospitality Activity Act has been sent to public consultation for a period of 30 days, from 17 April 2026 to 18 May 2026. This period will be the first serious test for the proposed solutions. During it, a number of comments can be expected from private renters, hospitality operators, local units, professional associations and legal experts, especially regarding the issue of the registration number, the scope of powers of supervisory bodies, reclassification and the status of certain forms of accommodation.

The outcome of the consultation will also be important because the law is not being adopted in a vacuum, but at a time when European rules on short-term rentals are entering the implementation phase, while Croatian tourism is simultaneously seeking a balance between growth, sustainability and quality. If the proposed mechanisms truly come to life, Croatia could gain a more orderly and data-transparent system of tourist accommodation than it has today. If, however, the digital and supervisory solutions remain insufficiently developed or place too much burden on compliant service providers, the debate on the law could turn into a dispute between the state’s regulatory ambitions and the everyday reality of a sector that still carries a large part of the country’s tourist traffic. That is precisely why the upcoming consultation will not be merely a formal procedure, but a space in which it will become clear whether the new law can simultaneously strengthen order on the market, protect legal renters and preserve the competitiveness of the Croatian tourism offer.

Sources:

• - Ministry of Tourism and Sports of the Republic of Croatia – official announcement on the presentation of the Draft Proposal of the Hospitality Activity Act of 17 April 2026 (link)
• - e-Consultations – link to the public consultation for the Draft Proposal of the Hospitality Activity Act, open from 17 April 2026 to 18 May 2026 (link)
• - EUR-Lex – Regulation (EU) 2024/1028 on the collection and sharing of data relating to short-term accommodation rental services, including the obligation of a registration number and the framework for data exchange (link)
• - EU Tourism Platform / European Commission – summary of the implementation of Regulation (EU) 2024/1028 and information that the rules apply from 20 May 2026 (link)
• - State Inspectorate of the Republic of Croatia – description of the scope of tourism inspection in the field of hospitality, unregistered services and tourist tax (link)
• - e-Consultations – form of legislative activities of the Ministry of Tourism and Sports for 2026 with an explanation of the need for a new Hospitality Activity Act and separate amendments to the Tourist Tax Act (link)