Geneva, a city on the northern coast of the Adriatic Sea, is the country’s first to offer cheap accommodation to Syrian migrants.
The city council said on Thursday that hotels in the tourist town would be free for the first three months of the new arrangement.
The scheme was developed in cooperation with the local NGO SOS Adriasis, which is based in the neighbouring town of Bruges.
It is a welcome development for the region, which has long faced the challenge of dealing with the influx of migrants arriving on its shores.
Last year, the EU imposed a ban on migrant arrivals in Croatia, with the first arrivals arriving in the European Union, after Slovenia and Serbia agreed to accept more migrants from Kosovo.
The number of migrants coming to Croatia increased from 12,000 in 2014 to 24,000 this year, according to the European Commission.
In 2016, Croatia received 2,827 asylum applications, of which 1,912 were granted asylum.
The rest were rejected or were not returned.
This year, around 2,500 asylum seekers are expected to arrive in Croatia.
About 90 percent of them are Syrian.
According to the Migration Policy Institute, almost half of all the refugees entering the EU are Syrian refugees.
The influx has led to a rise in the number of illegal crossings, as well as to more asylum applications.
In the EU, a total of 2.6 million migrants have crossed the Mediterranean Sea since 2015, according the UNHCR.
In 2017, Italy saw the highest number of asylum applications of any country, at 1,818.
In Hungary, where the country borders Croatia, the total number of refugees is estimated to be at least 10,000.