European country loved by Brits ‘declares war’ on tourist black market - ‘new law in May'

Authorities in the popular tourist country of Croatia have pledged to “declare war” on unregistered accommodation providers, with plans to introduce sweeping new legislation to tackle illegal short-term tourist rentals (STRs). Tourism and Sport Minister Tonči Glavina confirmed that a new Hospitality Act will be sent into legislative procedure this spring, designed to strengthen oversight and eliminate so-called “black market” operations within the country's largest and most important sector. Tourism and Sport Minister, Tonči Glavina, confirmed that a new Hospitality Act will be sent into legislative procedure this spring, designed to strengthen oversight and eliminate so-called “black market” operations within the country's largest and most important sector.

“By May, we plan to send the new Hospitality Act into procedure, through which we are in a way declaring war on illegal renting and unregistered activity,” Mr Glavina said. A key element of the proposed law is the introduction of enhanced digital controls, in line with EU regulations governing STR platforms. Under the new framework, online platforms will not be permitted to list accommodation providers who are not officially registered or who do not possess formal approval to provide services. This measure aims to prevent illegal landlords from advertising properties to tourists through major booking platforms.

Each accommodation unit, whether a room, apartment or holiday home, will be required to have a unique identification number. This number will be monitored by Croatia’s Tax Administration, enabling authorities to receive daily data updates and track rental activity in real time.

This echoes similar laws brought in in Spain on July 1, 2025. As of July 1, 2025, all short-term, tourist, and seasonal rental properties in Spain must obtain a unique national identification number, known as the NRA (Número de Registro de Alquiler), in addition to existing regional licenses. This 53-character code is mandatory for listing on platforms like Airbnb and Booking.com.

Mr Glavina explained that the system will allow for comprehensive digital supervision without the need for constant physical inspections: “This is an obligation under European Commission provisions regarding large platforms, and it will enable us to carry out extremely significant control over what is happening without physically going into the field,” he said, according to CroatiaWeek.

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The Croatian government also plans to expand enforcement powers, with municipal wardens, customs authorities and the State Inspectorate expected to be granted additional authority to monitor and act against unregistered rental activity.

The move comes amid growing concerns about unfair competition, lost tax revenue and the impact of unregulated tourism on local communities. Voted the number one destination by European Best Destinations for 2025, beating Spain, Austria, Italy, and Greece, Croatia's tourism boom - now worth roughly 12% of GDP according to official statistics - has upended local quality of life.

In coastal cities like Dubrovnik, Split and Zadar, the surge in STRs has made long-term housing scarce and unaffordable. Professionals such as teachers, doctors and firefighters are increasingly priced out of the cities they serve. Local neighbourhoods are becoming ghost towns in winter and open-air museums in summer, with local artisans replaced by generic souvenir shops (often themed around Game of Thrones) and fast-food outlets.

Unregulated visitor flows have also led to sewage overflows, waste management failures and chronic traffic congestion that paralyses the streets in the summer months.