Croatia Moves to Target Tourism Rentals to Tackle Housing Crunch
- Government proposal focuses on rentals in apartment buildings
- Proposal echoes moves of tourism centers like Barcelona
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Croatia is seeking to tackle a housing shortage in the European Union nation by effectively curbing the rental of private apartments in the crucial tourism industry to make living space more affordable for families.
Tourism makes up about 20% of Croatia’s economy, while low property taxes and minimal inheritance levies encourage people to invest in rental properties. But that’s helped drive a scarcity of apartments for sale, causing a surge in prices for both purchases and rentals, with Deputy Prime Minister and Construction Minister Branko Bacic saying about a million apartments, or 40% of the total housing fund, is used for commercial purposes.