Croatia, blessed with stunning natural beauty, over 1,500 kilometers of picturesque coastline, and abundant sunshine, has become increasingly popular as a vacation destination. According to local media reports, the country welcomed more than 21 million travelers in 2024, surpassing pre-pandemic figures from 2019. Despite this influx, tourists are expressing frustration over rising costs, particularly as a new tourism tax is set to take effect.
Starting January 1, 2025, the Croatian government has implemented a new property tax aimed at regulating the real estate market. This tax will impose charges ranging from 60 cents to 8 euros per square meter on properties rented out short-term, with municipalities having the authority to set the specific rates based on local conditions. Finance Minister Marko Primorac explained to RTL, "Unfortunately, we have the problem where due to the low taxation of real estate and rental income, many citizens focus on short-term rentals." He intends for these changes to stabilize the housing market and prevent unrest similar to recent protests observed in tourist-heavy regions of Spain.
Under this new tax structure, the flat fee for vacation rentals could increase significantly. For example, the previous rate for a two-bedroom rental might jump from 200 euros to as high as 600 euros due to the new tax policy. This increase poses additional costs for landlords, who may pass them down to their guests. While properties rented for 10 months or more will be exempt from this tax, the overall impact on vacation rental pricing remains contentious.
For tourists opting for hotels or campgrounds, they will not be affected by this new tax, raising some optimism from the Croatian National Tourist Board, which believes the demand will remain stable due to Croatia’s diverse accommodation options. “Connectivity remains accessible for all budget classes,” they reassured.
Meanwhile, the cost of travel has surged beyond just the new tax. The Croatian government has also increased toll fees for the entire year, introducing a 10% surcharge during peak season. For vacationers driving themselves, these elevated tolls—applied based on distance traveled—add to the overall travel expenses. Campers and those seeking self-driven exploration will feel these financial impacts disproportionately.
Since the introduction of the euro, there have been substantial increases reported by tourists frequenting popular destinations. Travelers shared anecdotes of staggering prices: for example, burgers priced at 22 euros, glasses of Aperol Spritz for 11 euros, and café lattes costing 7 euros. Many local business owners have reportedly seized the opportunity to hike their prices up, citing increased costs across the board due to regional economic conditions. The Croatian Tourist Board, when contacted by travel journalists, sought to downplay these increases, attributing them to difficulties faced by the economy, including the rise of energy and service costs.
While inflation has become less of a concern recently, with rates settling between 1.8% and 2.4% by the summer of 2024, complaints about high prices from travelers have persisted. For budget-conscious travelers wanting to explore Croatia without breaking the bank, it’s suggested they seek less prominent tourist destinations where prices are more reasonable.
Regions located just outside the most visited cities offer viable alternatives, and travelers will have opportunities to experience Croatia’s rich cultural heritage without the price tag attached to well-trodden sites. For example, those wanting to skip the heavy crowds of Dubrovnik may wish to explore places like Zagreb or the picturesque nature park surrounding Lonjsko Polje.
To mitigate some of the financial burdens without sacrificing enjoyment, visitors should thoroughly research accommodations, as self-catering facilities can significantly reduce meal costs if properly utilized. Similarly, venturing away from tourist traps may also yield more affordable dining experiences.
Despite these hurdles, Croatia’s status as a desirable travel destination remains unshakeable, bolstered by its stunning landscapes and rich cultural fabric. The government’s hope is for these tax measures to not only manage tourist activity but also to maintain local living standards and prevent the kinds of protest seen elsewhere.