CROATIA Law and Practice Contributed by: Marko Paulinović and Dino Vukoša, Buterin & Partneri
intended for the maintenance of municipal infrastruc - ture and constitutes revenue of local self-government units. This fee is paid by the property owner; how - ever, the law allows, and it is common practice, for the obligation to pay this charge to be contractually
ings only quiet and non-disruptive business activities may be carried out, while other types of activities may be conducted only subject to special permits and approvals. 6.14 Tenant’s Ability to Alter and Improve Real Estate The law prescribes that a tenant/lessee may use the property in accordance with its agreed contractual purpose and may not undertake alterations, adap - tations or improvements without the consent of the landlord/lessor. As a general rule, any construction intervention requires the prior written consent of the landlord/les - sor. The rent or lease agreement may also stipulate the lessee’s obligation to submit project documentation, obtain the necessary permits for works and restore the premises to their original condition upon termination of the rent agreement/lease. Irrespective of the contractual provisions, such works remain subject to public law restrictions under the Construction Act, including the obligation to obtain the appropriate permits or documentation where required by law. 6.15 Specific Regulations The statutory framework distinguishes between two principal categories of real estate based on their pur - pose: residential and commercial. Residential rent agreements are regulated by the Apartment Rent Act, while leases of commercial prem - ises (including offices, retail premises and industrial facilities) are governed by the Commercial Premises Lease and Sale Act, both in conjunction with the Civil Obligations Act as the overarching legal framework governing contractual relations. Special legislation most commonly applies to real estate owned by the state, such as forests, agricul - tural land or formerly socially owned property. Additional regulation has recently been introduced in relation to short-term accommodation rentals, requir - ing the consent of two-thirds of the co-owners of the
transferred to the lessee. 6.12 Insurance Issues
Insurance of the real estate itself is most commonly arranged by the lessor. The risks typically covered include fire, earthquake and natural disasters. The cost of such insurance may be contractually passed on to the lessee, either directly or through mainte - nance and operating costs. Lessees, on the other hand, usually procure insurance policies covering equipment and inventory located within the leased premises, as well as liability insur - ance covering damage caused to third parties in the course of carrying out their business activities. With regard to claims against insurers for reimburse - ment of rent payments and other costs incurred by lessees during the COVID-19 pandemic, Croatian court practice has not recorded a significant number of such disputes. During the main financial impact of the pandemic, lessees generally addressed requests directly to lessors seeking rent reductions or tempo - rary suspension of rent payments. In that context, courts primarily examined the legal doctrines of force majeure and changed circumstances. 6.13 Restrictions on the Use of Real Estate In lease agreements, the contracting parties may agree on restrictions regarding the manner in which the real estate may be used. In practice, such restric - tions most commonly relate to the prohibition of struc - tural alterations to the property and the requirement that the premises be used in accordance with their designated purpose. Co-owners of residential and mixed-use buildings may regulate the manner of use of the property through house rules, which are binding upon all co-owners and occupants. In addition, statutory regulations provide that in multi- apartment and mixed residential-commercial build -
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