Regulation on the criteria, standards and procedures for leasing real estate owned by the Republic of Croatia to civil society organisations now open for public consultation

The Ministry of Physical Planning, Construction and State Assets opens public consultation for the proposal of the Regulation on the criteria, standards and procedures for leasing real estate owned by the Republic of Croatia to civil society organisations. Public consultation will be available until November 3, 2025.

The regulation governs the criteria, standards and procedures for leasing real estate owned by the Republic of Croatia, managed by the relevant Ministry, and to the benefit of civil society organisations through a public tender or a direct agreement. The lease can be used for performing a registered activity and/or for implementing programmes and projects of public interest.

The provisions referring to civil society organisations also apply, as appropriate, to religious communities, trade unions, chambers and art organisations, while certain provisions on leasing through a direct agreement apply to freelance artists as well.

The programmes and projects of public interest are considered, inter alia, those who contribute to the protection and promotion of human rights, the rights of national minorities, persons with disabilities and children with developmental difficulties, the elderly and infirm, to equality and equity, peacemaking, combating violence and discrimination, fostering the values of the Homeland War and protecting the interests of veterans and victims. This category also entails programmes for protection, care and education of children and the youth, the development of demographic political culture and similar goals.

The amount of the rent is determined in accordance with the general act of the local self-government unit (LSGU) where the real estate is located, or if such an act does not exist, in accordance with the act of the nearest LSGU. In the event of changing the criteria, the rent is adjusted by concluding an annex to the contract.

Managing real estate through a public tender

The Ministry can manage real estate through a public tender or a direct agreement, in accordance with the Act on Management of Immovable and Movable Property Owned by the Republic of Croatia.

Managing real estate through a public tender is carried out in the form of a public call to submit written applications, for a 10-year period. The public call can be adjusted to the activity performed in said real estate, depending on the space type and size. It is published on the website of the Ministry and the Government’s Office for Cooperation with NGOs. The Ministry publishes information on conducted tenders, lease agreements and real estate on lease.

The Regulation defines the content of the public call, the criteria the applicants need to fulfil and the documentation they are required to submit. Furthermore, it prescribes quantitative and qualitative criteria for assessing applications (years active, number of permanent employees, number of members and volunteers, secured financial resources for programmes and projects, activities of public interests carried out in the last 12 months, number of partner organisations of the civil society, programme quality).

For specialised public tenders, for instance associations stemming from the Homeland War or those active in the field of culture and art, special assessment criteria are envisaged in cooperation with competent ministries.

The Regulation also clearly determines the Committee for application assessment. The Committee consists of seven members, including a president and deputy president. Their task is to verify whether the applicant fulfils the conditions, to assess the applications, to form a priority list and to suggest to the minister the adoption of the decision on leasing the real estate.

Managing real estate through a direct agreement

A lease contract can be concluded with organisations which fulfil the conditions prescribed by the Act and the Regulation, and which, on the date the Act entered into force, were already in possession of real estate owned by the Republic of Croatia but did not have a valid contract. This also applies to organisations using real estate over which ownership of the Republic of Croatia was established after the Act entered into force.

Such contracts are concluded for a five-year period, with the possibility of extending it for additional five years, provided that the organisation meets all the prescribed conditions and duly fulfils its obligations.

The Ministry will not conclude a contract through a direct agreement if the real estate used by the association is essential to it, but it will offer another suitable real estate to the organisation.

The Regulation thoroughly prescribes the conditions and necessary documentation the organisation needs to submit in order to conclude a contract.

Concluding a lease contract

A lease contract is concluded on the basis of a tender or a direct agreement. The decision on concluding a contract with the elected applicant or direct user is made by the minister acting on a proposal from the Committee.

The Regulation clearly stipulates mandatory content of the lease contract and the reasons for its termination. The lease terminates upon the expiration of the contract, the expiration of the notice period or upon the termination of the contract within a 30-day period since the termination. The Ministry can terminate the contract under the conditions prescribed by the Regulation.

Since the reserve fee is often higher than the rent paid by civil society organisations, the Ministry assumes the obligation of paying the reserve fee for real estate owned by the Republic of Croatia used by said organisations upon the entry into force of this Regulation.

All interested parties and professional public can participate by giving their opinions, suggestions and remarks, with prior registration, through the eSavjetovanja portal no later than November 3, 2025.

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