To everyone renting out without a licence: from 1 May 2027, things will get much harder. Accommodation without a registration number will no longer be allowed on online rental platforms, and enforcement is moving to classified ad sites and Facebook groups as well. The good news is that the way out is closer and cheaper than you think.
What it actually costs to be legal
Many people rent out without a licence out of habit, or because they think going legal is too expensive and too complicated. The numbers say otherwise. The flat-rate tax does not depend on how much you earn, only on the number of beds. In the Town of Krk it is currently 100 euros per bed. The tourist tax for 2027 in the Town of Krk is 65 euros per bed, and 65 or 68 euros in the other municipalities on the island. The tourist board membership fee is also a flat rate of 5.97 euros per standard bed.
For a house with six beds in the Town of Krk, it looks like this:
| Obligation | Per year |
|---|---|
| Flat-rate tax (€100 per bed) | 600,00 € |
| Tourist tax for 2027 (€65 per bed) | 390,00 € |
| Tourist board membership fee (€5.97 per bed) | 35,82 € |
| Total | 1.025,82 € |
The government has announced a higher minimum flat-rate tax from 2027: 150 euros per bed in the first group. If it applies, the same house would pay around 1,330 euros a year. The amounts differ in other municipalities on the island, but they are of the same order.
Now compare that with a fine. For a private individual providing accommodation without a licence, the proposed fines range from 2,600 to 10,000 euros. A single fine wipes out several years of legal operation.
The other side of the calculation matters even more: a legal house earns more. A house rented out off the books lives on word of mouth, regular guests and a few weeks in July and August. A legal house is sold on every platform and through agencies, fills up in the pre-season and post-season too, and guests find it on their own. For houses that have moved from the grey zone into the system, earnings are typically two to three times higher. Seen that way, a thousand euros a year is not a cost but the best investment you can make in the house.
All obligations are explained in detail in our article on taxes for private holiday rental owners on Krk.
Neighbours now have someone to call
Until now, reporting an unregistered rental often led nowhere. That is changing. Unregistered accommodation will also be monitored by municipal wardens, with the same powers as tourism inspectors, and the fines they collect stay with the town or municipality. Local government thus gains both the authority and a clear financial interest in carrying out checks.
The rest of the system is also targeting ad sites and social media. The State Inspectorate is being given the power to carry out covert monitoring of classified ad sites and social media groups. Checks are already stricter, and a large number of properties have been sealed this year alone.
On Krk, everyone knows whose house is full of guests all summer without a sign on the wall. People who pay all their obligations have been annoyed by this for a long time. Now they finally have someone to tell, and someone in the same municipality at that.
| Offence | Proposed fine |
|---|---|
| Private individual renting out without a licence | €2,600 to €10,000 |
| Owner without a registration number or not displaying it | €2,000 to €6,600 |
| Company or sole trader advertising unregistered accommodation | up to €6,000 |
“Only to friends” and family
The owner of a holiday home may stay there with family and host friends, but everyone who spends the night in the house must be registered in eVisitor within 24 hours of arrival and checked out on the last day of their stay. For friends and extended family, the tourist tax is paid for every night.
The law also sets a clear limit. If more than 15 people who are not the owner's immediate family stay in a holiday home between 15 June and 15 September, the owner is considered to be providing hospitality services. The Ministry says openly that the rule on hosting family and friends is being abused to disguise unregistered renting, so the new law tightens it further.
That story no longer works with inspectors anyway. A house that hosts “friends” all summer whom nobody in the village has ever seen will be the first thing they check.
Slovenians, Austrians and other foreign owners
Some foreign owners have been renting out without a licence for years, through acquaintances and ads in their home country, usually because they think the Croatian system is too complicated. For citizens of the EU, the EEA and Switzerland, the route is the same as for Croatians: a categorisation licence in their own name. Citizens of non-EU countries can no longer obtain one as private individuals and need a different model, usually a company.
The tax side is simpler than it looks. Since 2025, there has been a model with an EX number: an owner who meets the conditions and works through a Croatian agency does not have to register for VAT in Croatia. EU owners who provide the service directly to guests, with a turnover below 60,000 euros a year, can pay income tax as a flat rate. Which model applies to whom depends on how the accommodation is sold, and everything is explained in our guide for non-residents.
For a few hundred euros a year, a foreign owner can be fully legal. Without that, from May 2027 they lose the platforms, and with ad sites and word of mouth they walk straight into the focus of enforcement.
A house without papers: three situations
| Situation | What to do |
|---|---|
| The house has an occupancy permit or other proof of fitness for use | Apply for categorisation |
| The house was built without a permit before 21 June 2011 | Legalisation (certificate of as-built status), then categorisation |
| The house was built without a permit after 21 June 2011 | Legalisation is not possible, an architect's advice is needed |
| You rent out under a temporary licence | Valid until the end of 2030, but legalisation must be completed |
For houses built before 21 June 2011, an application for legalisation can once again be submitted at any time since this year, but only with complete documentation. New temporary licences are no longer issued, so anyone starting legalisation now cannot rent out legally until the procedure is finished.
That is why winter is the right time. Those who start now have a realistic chance of going into the 2027 season with their papers in order. Those who wait for spring will be standing in the same queue as everyone who woke up when the platforms took their listing down.
The deadline for the registration number and the fines are given according to the final draft of the Hospitality Industry Act and may change before it is adopted.
Krk danas Editorial Team
Portal partner
You have a house but no licence?
Krk Adria / Visit Krk helps owners on Krk with categorisation and then takes over guest registration, invoicing and sales. Foreign owners can also work through the EX number model, without registering for VAT in Croatia.
Cooperation with owners on KrkHave a question about this topic? Write to the editorial team.
Sources
tportal.hr, 12 Nov 2026: Glavina presents the new Hospitality Industry Act
tportal.hr, 21 Oct 2026: The state will also monitor ads
financije.hr, 21 Oct 2026: Fines under the final draft of the act
DubrovnikNet, 24 Oct 2026: Municipal wardens and fines
IUS-INFO: Hosting family and friends
gov.hr: Guest registration and check-out
RRIF: Taxation of EU foreign owners
Official Gazette 48/2026: Amendments to the act on illegally constructed buildings
