Latest Amendments to the Residential Lease Act in 2025 – What Landlords and Tenants Need to Know

The law is changing – are you ready?

If you rent out an apartment or plan to in 2025, you should know that the Residential Lease Act has been updated again. The new amendments bring significant changes for both sides – landlords and tenants alike – and aim to create a more transparent market and better protection for everyone involved.

Below is a summary of the most important changes that you need to know if you are involved in renting out property.

1. Mandatory registration of rentals and contracts

Until now, many landlords avoided registering their rentals. The new law tightens the rules:

• All rental contracts must be reported to the Tax Administration within 8 days.
• Failure to register is punishable by fines of up to €5.000.
• A registered contract is a prerequisite for exercising certain rights (such as tax relief or legal protection).

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2. Minimum lease term for tax relief

If you want to benefit from tax relief (e.g. a lower rate of income tax on rental income), the new law stipulates:

• The minimum contract term must be 12 months.
• Shorter contracts do not qualify for relief and are subject to the standard tax rate.

This is an attempt to encourage more stable, longer-term rentals.

3. Limits on rent increases

When a contract is extended or a new one is signed with the same tenant:

• Rent cannot be increased by more than 10% per year, unless there has been significant investment or renovation.
• This applies only to regulated long-term rentals, not to tourist rentals.

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4. Stronger tenant rights

The law defines more precisely:

• Notice periods for terminating a contract
• The landlord's obligations regarding repairs and maintenance
• The tenant's right to quiet enjoyment of the apartment without “unannounced visits”

This is particularly important for young people and families seeking security in a long-term rental.

5. Tourist rentals under closer scrutiny

Private apartment owners switching from long-term to short-term rentals:

• Must have their property registered as tourist accommodation
• Must meet categorisation requirements (often overlooked with “Airbnb apartments”)

The Tax Administration and tourist boards are working closely together in 2025 and using advanced tools to detect unregistered rentals.

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What does this mean for you?

If you are a landlord, the new amendments mean that:

• You must keep your documentation and taxes up to date
• Long-term renting becomes safer, but also more strictly regulated
• Transparency is no longer an option but a necessity

If you are a tenant, the law protects you more than ever:

• You are entitled to a predictable price
• You can demand the agreed conditions, repairs and peace and quiet
• You no longer need to fear being “thrown out overnight”

Conclusion: the end of the grey area in apartment rentals?

The year 1 brings a significant change in rental culture in Croatia. Although some landlords are unhappy about the stricter conditions, in the long run this means a safer, more predictable and fairer market.

If you are unsure how the law affects your rental, whether you are renting out or looking for an apartment, our team can help you. We follow all legislative changes, work with lawyers and offer advice on secure renting, with no surprises.