By now, 192 protected tenants paid, over 200 apartments returned to owners

Pursuant to the Act on the Implementation of the European Court’s Judgments of the Statileo Group and the Constitutional Court’s Decision referring to housing care for protected tenants, 192 protected tenants have been paid and over 200 apartments have been returned to owners by now.

Let us recall, the Act entered into force in early April 2024, while the programme of measures applies since January 2025.

The Act regulates one of the transition issues related to protected tenants and thus concludes legal uncertainty of owners and protected tenants. The owners are entitled to asset recovery and payment of market rent, while the tenants have the possibility to acquire ownership rights under favourable conditions. This legal solution guarantees material rights to protected tenants, whether it be through payment or through favourable property acquisition. It is implemented through five programme measures for permanent resolution of the problem, with temporary measures facilitating the transitional period (rent subsidy, affordable purchase of apartment, solidarity surcharge, one-time financial aid to relocate).

Over 200 apartments returned to owners, 192 protected tenants paid

Since the beginning of 2025, apartment owners have been paid market rent (ranging from 7.5 to 9.375 €/m²), whereby half of the amount is paid by the tenant and half by the state. The owners have welcomed the measure, considering the previous rent of only a few euro cent per m². It is important to emphasise that the rent paid by tenants cannot exceed 25 % of the household income of the tenant - in which case the Republic of Croatia cover the difference.

By now, over 13 million euro for a total of 192 protected tenants has been paid, which covers the needs of 335 persons. Over 200 apartments have been returned to owners after more than eight decades.

The most frequently chosen measure is relocation to a state apartment, which also implies termination of the protected tenant status and return of the property to the owner. So far tenants have moved into five state apartments, while 12 of them have willingly moved out and await relocation. Protected tenants in state apartments pay rent in the amount of 2 €/m² and they are also entitled to buy the apartment at the reference construction price (1,315 €/m²) over a 20-year period with no interests.

It is important to note that on July 9, 2025, new information on reference construction price was published and that the amounts paid to protected tenants had increased. The payments now amount to 67,065 euro for singles in Zagreb or a coastal local self-government unit, and to 55,887 euro in other parts of the Republic of Croatia, with additional 13,150-15,780 euro per household member. The average payment so far is slightly over 70,000 euro.

Existing state apartments under renovation, new buildings in Zagreb, Split and Dubrovnik under construction

There are nearly 600 state-owned apartments that require renovation, while additional 250-300 apartments are planned for construction. The apartments are renovated by the company Državne nekretnine, which has published several public procurement procedures for projects and works on approximately 200 apartments.

The state has also initiated the construction of apartments for protected tenants in Split, while a building in Zagreb has obtained a valid building permit. A building in Split in Sirobuja will consist of 58 apartments, in Zagreb the procurement procedure is underway for a building od 152 apartments in Blato, and in Dubrovnik three buildings comprising 60 apartments are planned. If needed, additional buildings will be built in other cities as well. The means to implement the Act are secured through the state budget.

State-owned apartments are allocated according to a priority list prescribed under Article 44 of the Act, depending on several criteria. Priority is given to vulnerable groups, Croatian veterans and members of their families. The list is also determined according to the date of registering the apartments, and if apartments are registered on the same day, earlier requests are given priority.

It is important to add that in late January 2025 the Ministry designed a Register of apartments which accommodate protected tenants, where 1,349 apartments were initially registered. However, as cases get resolved, the number declines - currently there are 1,217 registered apartments. The Register represents a centralised list including data on all apartments owned or co-owned by natural and legal persons that accommodate protected tenants. Statistical data on the implementation of the Act are also published, including the number of apartments by local self-government units and the number of implemented measures.

Five programme measures to resolve the issue of protected tenants

Let us recall, the Act envisages five programme measures for permanent resolution of the protected tenant status in privately-owned apartments, including:
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• settlement between the parties that determines the amount of rent and an indefinite rental period
• payment to the protected tenant based on the reference value of the apartment they are entitled to (approximately 55,887-67,065 euro and additional 13,150-15,780 euro per household member)
• relocation of the protected tenant to a state apartment where they pay minimal rent, with the possibility to buy the apartment under favourable conditions
• exchange of apartments between the owner and the Republic of Croatia, with the possibility to buy the apartment under favourable conditions for the protected tenant
• purchase of the apartment from the owner by the Republic of Croatia, with the possibility to buy the apartment under favourable conditions for the protected tenant

Measures 4 and 5 are only open for discussion if the owner is willing to sell or exchange apartments. According to available data, most tenants choose measures number 3, 4, 5 and 2. Most requests have been submitted in Zagreb, Split, Rijeka and Dubrovnik.

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