Croatia's Bold Stance on Tourist Housing: The Price Crunch Showdown

Croatia is introducing legislation to curb high housing prices linked to tourism. This move, similar to actions in other European cities, may affect short-term rental platforms. The draft laws aim to increase taxes on rental properties but exclude long-term housing units. Some locals support the changes to revitalize depleted communities, though property owners express concern about financial impacts.

Croatia is poised to address a tourism-induced housing price surge with new legislation, which some property owners believe could harm their businesses.

The Croatian parliament has approved a draft law package, with the final law subject to wider discussions and likely amendments, following similar restrictions in other European cities.

Croatian Finance Minister Marko Primorac outlined that the laws would increase taxes on rental properties, aiming to offer locals market-price rental opportunities, though property owners are apprehensive about potential financial consequences.

(With inputs from agencies.)