Renting Out Property in Croatia to Tourists

To achieve the highest possible return on your new property in Croatia as an investment, you should aim for occupancy across as much of the year as possible. Unlike long-term lets of residential property, with property in Croatia you need to bear in mind that the frequent turnover of holiday guests creates extra work. This should be handled as professionally as possible so that guests are not annoyed and you do not collect poor reviews on the relevant portals. There are several German- and English-speaking agencies that specialise in renting out holiday property in Istria, Kvarner Bay or Dalmatia. Year after year, Croatia sets new records in the tourism sector.

Tips and information on renting out holiday property to tourists in Croatia - Panorama Scouting.

Rising numbers are not only down to factors such as fear of terrorism (Egypt, Tunisia, Turkey) or political tensions, but also to a large number of new holiday homes that fully meet high Central European standards. For Croatia we expect interest in holiday property on the Croatian Adriatic coast to keep growing in the coming years. Although property prices on the coast have risen, there are still very attractive opportunities, and compared with Italy, Spain, France or Germany, prices are still lower.

What conditions must be met to rent out a property in Croatia?

For EU citizens as private individuals, renting out a property in Croatia to holiday guests is possible without major difficulty. Owners from non-EU countries are subject to different rules - they must set up a business or a company in Croatia before they are allowed to let. Even so, a few points should be observed - EU citizens included:

• you must be the owner of the property and be registered accordingly in the land register (Croatian: "zemljisna knjiga") and the cadastre.

• the property must have a use permit (Croatian: "uporabna dozvola"). This is a very important document, which is also essential when buying property in Croatia. If there is no use permit, the property cannot be let, or lengthy objection procedures etc. have to be initiated.

• are the minimum requirements for letting met? This requires a property inspection , normally carried out by an employee of the local municipality. The accommodation is then categorised. Once you have received your categorisation with a number of stars, you must put up a blue sign showing the number of stars awarded in a visible place on your accommodation, at your own expense. To apply for categorisation of the property with the municipality, you need a copy of your identity card / passport and, where applicable, a health certificate.

• As a rule, you then have to apply to the local tourist board for personal online access for letting. This is where you will find information on the taxes payable, guest registration etc.

• Finally, you will normally also have to apply for a PDV number (VAT number). This is done through the Croatian tax administration (usually possible online). German citizens generally need a so-called certificate of residence from the tax office at their place of residence (because of the double taxation agreement) to be able to apply for a PDV number in Croatia.

Once you are entitled to rent out your property in Croatia to holiday guests, you can do so privately, through local letting agencies or through portals such as kroati, booking, airbnb, etc.

Important: legal requirements (online registration of holiday guests, payment of the tourist tax and bed tax, etc.) must be complied with. Checks are sometimes strict, and you can expect heavy fines if you have not followed these rules. We recommend having the letting handled by a suitable agency.

1. When can you achieve the highest rental income?

Take school holidays into account! By far the highest rental income is achieved during the school holidays – pay particular attention to the countries from which most tourists travel to Croatia. In 2025 Croatia recorded a record year with around 21.8 million arrivals and over 110 million overnight stays - Germans are still the largest group of guests, which makes communication even easier for German-speaking landlords. You should also keep an eye on the holiday calendars of Austrians, Italians and Czechs and exclude these periods from your own use.

2. Marketing – highlight the advantages of your property's location!

Does your property have a genuine unique selling point? Are there major events, exhibitions, trade fairs or festivals nearby? Is there a nature park, special places for recreation or a wide range of leisure activities near your property? Highlight these advantages in your listing and keep your offer up to date.

3. Marketing - Which features "pull in" holiday guests?

Which target group do you want to rent to? Remember: "the bait has to suit the fish, not the angler" – define a target group for which your property is best suited. While some ‚must-haves‘ such as a stable, fast internet connection, proximity to the sea, sea views, a swimming pool, a balcony etc. matter to all target groups, there are significant differences in the needs of couples, business travellers and families. If, for example, you mainly want to rent to families, make sure the furnishings are child-friendly. If business travellers are your main focus, pay attention to flexible check-in and check-out times, card payment, etc. Below are some features which, in our experience, very often lead to satisfied guests:

• Overflow (infinity) swimming pool

• Wheelchair-accessible entrance / lift

• Wi-Fi with a broadband connection

• Small gifts and nice gestures such as fruit baskets, magazines, a bottle of sparkling wine in the fridge, local specialities, a bottle of wine, etc.

• Modern furnishings, technology (TV, music systems, games consoles) and furniture

• Toiletries

• Can you offer your guests meals, especially breakfast (perhaps in a neighbouring café)?

• Information material about the area, excursions etc.

• Suitable, modern furnishing of holiday property for rent is also very important. We are happy to advise you on this - more information: Interior Design Croatia.

4. Build up regular guests!

Only satisfied holiday guests come back. Small touches and a property that is always clean will not only please your current guests but, ideally, turn them into regular guests. Regular guests often need little or no advertising spend and are normally easier to win back than new customers are to win. So stay in touch with your existing customers. Send them a Christmas or New Year card, for example.

5. Register as a landlord in Croatia for VAT and income tax.

Please remember to register your intention to let in Croatia. The registration and tax obligations of non-residents depend on whether the house is let directly to tourists or through a travel agency. If the house is let directly to tourists by a private individual, non-residents must register in the Croatian VAT system before the first letting. Income tax can be paid as a flat rate, for which an application must be made. Setting up a company is not compulsory, but a company can of course also buy a property and organise the letting as a company. In that case there is of course also an obligation to arrange Croatian bookkeeping. More information on setting up a company / d.o.o. in Croatia