Croatians have a serious cigarette habit. Figures indicate that some 27% of the population has a puffing problem with the attendant health ramifications (lung cancer, cardiovascular disease etc.). Considering the average salary in Croatia, cigarettes are comparatively expensive which hasn't brought down the smoking rate but has encouraged a thriving trade in smuggled cigarettes.
As it stands now, all bars larger than 50 sq m must have a separate non-smoking section and those smaller than 50 sq m must install a ventilation system. That may not satisfy those concerned about passive smoking but it appeases the hospitality industry to some extent. Smoking is allowed on outdoor terraces.
As for accommodation in Croatia, you can reserve smoke-free rooms in all five-star and four-star hotels. Many three-star hotels should be able to accommodate you; make the request when you make the reservation. As for private accommodation in Croatia--you can always ask but many of Croatia's inns and guesthouses are too small to set aside non-smoking rooms.
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