An urbanized area in Croatia can gain the status of grad (which can be translated as town or city as there is no distinction between the two terms in Croatian) if it meets one of the following requirements:
- is the center of a county (županija), or
- has more than 10,000 residents, or
- is defined by an exception (where the necessary historical, economic or geographic reasons exist)
A city (town) represents an urban, historical, natural, economic and social whole. The suburbs comprising an economic and social whole with the city, connected with it by daily migration movements and daily needs of the population of local significance, may also be included into the composition of a city as unit of local self-government.