The announcements of the introduction of property taxes and increases in flat rates for tourist beds last year provoked fierce reactions from private renters, who declared these government moves an attack on family accommodation. There was talk of destroying small renters, stifling tourism, and withdrawing from the business. However, while the public dramatically announced a collapse, official figures showed a completely opposite trend – the number of new apartments continued to grow, as did the prices per night.
Family accommodation today accounts for half of all tourist overnight stays in Croatia – there were 47.2 million last year. The system has more than 112,000 registered renters, with over 672,000 permanent beds, and it is estimated that they generate more than three billion euros in revenue annually. In the last ten years, the number of beds in private accommodation has increased by as much as 200,000, as low taxation systematically encouraged the construction of apartments – without real control and without a clear vision for development. Tourism was perceived as an inexhaustible resource, and an apartment as the simplest form of investment.
According to data from the Tax Administration, the number of tax subjects renting in tourism increased by 15,000 from 2022 to the end of 2024, while ten years ago there were only 63,000. The so-called non-commercial accommodation grew even faster, where owners only pay small flat tourist fees. Since it conceals the largest part of the gray tourist market, it is a thorn in the side of legal renters because it represents unfair competition.
However, behind the impressive numbers lies a very diverse picture: from modest rooms that bring owners a few thousand euros a year, to luxury villas that operate as serious entrepreneurial projects. Meanwhile, everyone pays the same flat fee, regardless of income level, location, or standard.
Despite the fact that half of all tourist overnight stays are achieved through zimmer frei, there is no detailed research on how many renters live exclusively from tourism, and how many see it as just additional income. Such a foundation could also serve for better shaping of tax and other policies.
Income Varies
– This should certainly be one of the key input data for creating new policies. In Croatia, especially on the coast, a huge real estate contingent has been created in private and non-commercial accommodation that exceeds the number of permanent residents, and the political elites, aware of the political weight of the problem, have long postponed any active management of this phenomenon – explains partner at the company Hotel and Destination Consulting Branko Bogunović.
Therefore, there are only estimates available for now. There is not even publicly available statistics on what share of renters one apartment has, and how many have turned tourism into a serious business.
In the text, through concrete examples from the field, we analyze how profitable zimmer frei really is, where the profitability threshold lies, how many renters truly live exclusively from tourism, and who sees it merely as a seasonal supplement to their household budget. We also provide estimates of how many – and who exactly – will be affected by the new tax and legal measures.
In discussions with tourism experts and representatives of renters’ associations, we also raise the question of fairer taxation – should the flat rate remain for all, or should the tax burden finally reflect the real differences among renters? Find answers to these questions, numbers, calculations, and practical experiences in the new digital and printed edition of Lider.
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