Croatia enjoys a favourable geo-communication position, being positioned in Central Europe, with exit to Adriatic Sea and encompassing part of the Danube valley.
Croatia has excellent transport connections nationally and internationally (Via ship, rail, plane, and road). It has great agricultural potential having 1.25 million acres of arable agricultural land. There are great possibilities for investing in the fields of geothermal energy. Croatia legalised a Digital nomad status legislated from 1.1.2021. There is a big potential for investment in tourism as well. EU membership provides a stable regulatory framework, promoting transparency and legal certainty. Entrepreneurs benefit from a harmonized set of regulations and standards, streamlining business operations and minimizing bureaucratic hurdles. Additionally, Croatia’s alignment with EU policies opens doors to various funding programs and support initiatives, empowering businesses to thrive and innovate.
The tourism sector, a cornerstone of Croatia’s economy, offers a plethora of opportunities for entrepreneurs. The country’s breath-taking landscapes, historic sites, and vibrant cultural heritage attract millions of visitors annually. Starting a business in hospitality, recreation, or related services taps into the ever-growing tourism market. The emergence of sustainable and eco-friendly tourism aligns with contemporary consumer preferences, presenting entrepreneurs with a chance to cater to environmentally conscious travellers. From boutique hotels to adventure tourism, the possibilities within the tourism sector are diverse and promising.
Croatia’s commitment to technological advancement and innovation is evident in the development of research and development (R&D) centres. The country recognizes the importance of fostering a knowledge-based economy and actively supports initiatives that promote innovation. Entrepreneurs keen on technology-driven ventures can capitalize on Croatia’s growing reputation as a hub for research and development, collaborating with local institutions and accessing a pool of skilled professionals.
The country’s well-educated and skilled workforce, as well as broadly speaking English language is another compelling reason to consider Croatia for business endeavours.
The easiest and a most common way of doing business is setting a company as a Ltd company. The minimum funding capital is 2.500 EUR, but a company could be set up even with a funding capital of just 10 EUR (so called simple LTD company). For most of the activities, no special permits are needed. The manager can be a foreigner as well. The VAT rate is 25% and the profit tax is 10% if revenues up to EUR 1,000,000.00 were realized in the tax period, or 18% if the income in the tax period exceeds EUR 1,000,000.00.
The founder(s) could be a physical person(s) or a firm(s).
Besides that a breach office (subsidiary) of the foreign firm could be established as well. The subsidiary acts in the name and on behalf of the parent company
Third country foreign persons performing economic activities and national or international economic association may establish a representative office in Croatia. Representative offices may be established exclusively for the purpose of market research, promotional and information activities and representation.
The representative offices cannot perform activities within the founder’s scope of activities or conclude business transactions for the founder.
Article written by
Rudjer Anic,
Attorney at Law, Zagreb, Croatia
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