croatia

Foreign exchange transactions with foreign countries are based on
GENERAL the Foreign Exchange System, Foreign INFORMATION
Exchange Operations and Tra-
STATE AUTHORITY
ECONOMY
CULTURE
SPORTS
ADDRESSES
CROATIAN SPECIALTIES
Foreign Exchange
System
de in Gold Act, which states that foreign currency is freely available
and that trade in foreign currency must be carried out through the foreign currency market.
In legal terms, a foreign entity is a legal person that has its headquarters abroad or a physical person with residence
abroad. International payments and credit transactions are carried out through authorised banks (i.e. tho-
se licensed for international transactions) that are responsible for their own solvency regarding payments to for-
eign countries. Foreign legal entities may hold foreign currency accounts with authorised banks in convertible currencies,
through which they can freely make foreign currency transactions and payments abroad. Foreign legal entities
may deposit foreign currency into their foreign currency accounts held with licensed domestic banks.
Profits made from the investment of foreign capital in Croatia may be transferred freely to foreign accounts
abroad provided that all legal obligations have been settled in Croatia. Profits made by foreign contractors involved
in investment projects in Croatia can be freely transferred abroad.
Foreign entities may accept receivables in domestic currency in accounts held with domestic banks licensed to
carry out business abroad under the conditions prescribed by the Croatian Government. Such receivables in domestic
currency can be used by foreign legal entities for transfer abroad, for payments in Croatia, for loans to domestic legal
entities as provided by law, and for transfer to another foreign legal entity’s account (in domestic currency). Foreign
currencies and securities denominated in foreign currency can be freely brought into Croatia.
The payment and collection of payments in international transactions can be carried out with the following
regular instruments of payment: documentary letters of credit (revocable and irrevocable, confirmed and unconfirmed,
transferable and non-transferable, back-to-back, single and revolving, red-clause letters of credit,
stand-by letters of credit); cash remittance; documentary collections; cheques; bills of exchange; promissory
notes; bank guarantees.
Domestic legal persons can also claim their credits from abroad in foreign currency, with a special approval
from the Croatian National Bank.
At their request, the Croatian National Bank will authorise domestic legal persons to settle their obligations
and claims by clearance, cession, assignment, debt take-over or another form of obligations and claims settle-
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