Dubrovnik traffic zone sparks legal battle with car rental firms

The special traffic zone around Dubrovnik’s historic Old Town has brought significant relief from congestion but also growing frustration among car rental companies.

Sixteen rental firms have asked the High Administrative Court to review a City Council decision that makes rental companies—rather than drivers—liable for traffic violations within the zone.

“My cars are parked because I don’t want to go to court, and the fine is 1,650 euros. I should also point out that we received one fine in November last year, but it only arrived three days ago,” said Maro Franić, the owner of a local rental company.

The companies claim the city has issued around 40 million euros in fines so far.

In response to criticism, the city has introduced a new policy requiring rental companies to provide driver details for each violation within three days.

“Just last week we received 1,000 requests at once for violations dating back to June last year. That’s a direct attack on our business—we have to identify these people and respond within a very short timeframe,” said Danijel Drenški, another rental company owner.

However, the companies’ lawyer, Fran Olujić, argues the new rules still leave rental firms effectively liable.

“This is legal nonsense and sets a dangerous precedent. It shifts responsibility from the person who committed the violation to the vehicle owner and its representative. It is unprecedented in Croatia and in Europe,” said Olujić.

Dubrovnik Mayor Mato Franković rejects the criticism, accusing some rental agencies of enabling illegal taxi operations and using the legal challenge to pressure the judiciary.

“They are not interested in the City of Dubrovnik or its citizens, but only in profit,” Franković said.

According to the mayor, platforms such as Uber and Bolt rely on vehicles leased long-term from rental companies and then used for taxi services, which he claims is illegal.

Under the city’s latest decision, fines have been reduced, but companies must still submit driver information within three days in an effort to speed up enforcement against those responsible for violations.