Croatian landlords petition EU over proposed hospitality law

The association ‘Save Small Family Landlords’ (SMOi) has filed an official objection with the European Commission regarding Croatia’s proposed Hospitality Activity Act. Using the EU’s TRIS notification system, the group is requesting that the Commission examine the law’s compatibility with EU regulations before it is adopted by the Croatian Parliament.

SMOi argues the legislation threatens the livelihoods of approximately 110,000 small family landlords, who provide roughly 60 percent of Croatia’s total tourist accommodation capacity. Key points of contention include a mandate for the re-categorization of all accommodation units every ten years, regardless of whether physical changes have occurred. The association notes that the costs of this process would fall on landlords and that the specific criteria for categorization are set by the Ministry of Tourism and Sport outside of parliamentary procedures.

Additionally, the association has raised concerns regarding new rules for ‘host’ status and requirements for landlords in multi-apartment buildings. Under the proposal, landlords may need to obtain consent from two-thirds of co-owners and every immediate neighbor to continue short-term rental activities, a rule that SMOi claims could allow a single neighbor to shut down a business.