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Croatia the latest tourist-trap nation to mull short-term rental controls

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Croatia the latest nation to consider restricting short-term tourist rentals

With rents rising and a housing shortage, Croatia is taking steps to tax short-term holiday lets. Meanwhile, sustainable tourism gets a push

Tourists throng the Old Town of Dubrovnik, in southern Croatia. The nation is facing rising rents driven by holiday lets to visitors that create a housing shortage. Photo: Getty Images

Croatia is set to become the latest European country to tackle a tourism-related housing price crunch, although some property owners fear the proposed legislation will affect business.

A package of draft laws was approved in the Croatian parliament last week, but the final nationwide legislation will only be passed after wider discussion and likely amendments.

Cities from Malaga and Barcelona in Spain to Athens, Greece, and Budapest in Hungary have clamped down on short-term rentals to alleviate housing shortages and reduce prices for local people.

Such moves in popular tourist destinations might have an impact on platforms such as Airbnb and Booking.com.

The old town of the southern Croatian city of Dubrovnik. Photo: AFP

The old town of the southern Croatian city of Dubrovnik. Photo: AFP

This year Croatian coastal tourist trap Dubrovnik banned new private rental permits in its historic Old Town to keep young people from leaving as a result of high costs.

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