The Croatian government has opened public consultation on the new Housing Tenancy Act — the first serious attempt to drag the rental market out of the Wild West. Here’s what it brings.
If you’re a tenant — this is probably the most important legal change for you in the last 30 years. If you rent out a property — same story.
Minister of Physical Planning, Construction and State Property Branko Bačić presented the draft new Housing Tenancy Act in early August, which would replace the current law from 1996 (with three amendments in between). The public consultation is open for one month, and the law brings sweeping changes for everyone living in a rental or renting out a property.
1. Contract at a notary — mandatory certification
The biggest novelty: every new tenancy contract will have to be certified by a notary public (drafted as a notarial deed). That means the end of the “I’ll email it to you, sign it and send me cash” story.
Notarization enables direct enforcement — if a tenant doesn’t pay, the landlord doesn’t have to go to court; they can go straight to enforcement. The same works the other way: if a landlord won’t return the deposit, the tenant can get their money faster. The minister claims disputes will be resolved twice as fast.
An extra bonus: through notarization the state will have accurate data on how many apartments are in long-term rental — which hasn’t been the case until now.
2. Deposit, handover and apartment inspections
The law sets the deposit at one month’s rent (the previous maximum was 3 months’ rent). At move-in, a handover report must be drafted with a description of the condition, meter readings and photos of every room.
A landlord may inspect the apartment no more than twice a year, with prior notice. So no more “I dropped by unannounced to check if my cat is alive” situations.
3. Rent increase cap
This is key protection for tenants:
- Rent may be increased at most once per year
- The increase is capped at the annual growth rate of housing prices according to the national statistics bureau (DZS)
- The landlord must announce the increase at least 30 days in advance
- Any clause allowing more frequent or larger increases would be null and void
4. Contract termination — new deadlines
Tenant: may terminate the contract without giving a reason, with a 60-day notice period.
Landlord: may terminate for breach of obligations (non-payment, damage, breaking house rules). Before terminating, they must send a written warning with a 15-day period to remedy the breach. If the tenant doesn’t remedy it, the eviction period is at least 30 days.
Termination without tenant fault: the minimum eviction period is 6 months (12 months if the tenancy lasted over 5 years). If a child lives in the apartment, the period is extended by an additional 6 months. A shorter period may be agreed by contract, but not shorter than 3 months.
5. The Workers’ Claims Agency (APOR) — a new player in the rental market
This is a complete novelty in Croatian legislation. APOR (the Agency for Securing Workers’ Claims) takes on the role of rent insurance.
How it works:
- The landlord voluntarily joins APOR with an annual membership fee of €40 to €150 (max 2% of the annual rent)
- A blank promissory note from the tenant up to €10,000 is provided with the contract
- If the tenant doesn’t pay, APOR pays the landlord’s claims
- The contract must be notarized and submitted to the agency
For tenants: this means more landlords will be willing to rent long-term — because they have payment security. For landlords: €40-150 a year for peace of mind.
6. State-owned apartments — maximum rent
For state-owned apartments, the rent base is €7.725/m² (annual, adjusted for inflation). For Zagreb and coastal towns this base is multiplied by 1.2, reaching €9.375/m².
Key rule: total rent + utilities must not exceed 30% of household income.
Around 4,000 protected tenants in “socially owned” apartments get the right to purchase, with the state mediating in the sale. Their rent is capped between twice the minimum building reserve and the rate for state apartments, limited to 30% of income.
7. Affordable rent program — concrete examples
Bačić also presented concrete figures: a family of three in Trešnjevka (53.4 m²) will pay €339 per month, while the state pays the owner €662 (median rent). The saving for the family: €323 per month — practically 50%.
958 properties have applied to the Affordable Rent Program so far, with 61 matches in progress. Under the new rules, co-owners who previously rented short-term can join the Program without waiting two years.
What’s next?
The draft law is in public consultation until early September 2026. Anyone interested can submit comments through the e-Consultations system. After that, the law goes to Parliament, and if passed, it’s expected to take effect in 2027.
Follow us — as soon as the law passes, we’ll bring you a detailed guide with concrete figures and deadlines.
* Information is based on the draft law in public consultation. The final text may differ.