croatia

GENERAL INFORMATION
STATE AUTHORITY
ECONOMY
CULTURE
SPORTS
ADDRESSES
CROATIAN SPECIALTIES
Ministry issues a certificate on compliance with the conditions stipulated by the Investment Promotion Act,
and the applicant obtains the status of a beneficiary of investment measures, tax and tariff benefits.
Repatriation of Profits The Foreign Exchange System, Foreign Exchange Transactions and Trade in Gold
Act regulates the transfer of profits to a foreign country. According to this Act, the transfer of profits is unrestricted
and may be effected after all legal obligations in Croatia have been met. If a company with profits to
be transferred derives foreign currency income from exports of goods and/or services, then the transfer of prof-
its may be effected through the company’s own foreign currency account. A foreign investor may opt to keep
the profits earned in Croatian currency in its domestic currency account held at an authorised local bank. In
addition to the transfer of profits to a foreign country and payments in Croatia, these profits can be used for
loans to domestic entities in accordance with the law, and for transfers into domestic currency accounts of
other foreign persons.
Ownership Rights of Foreign Legal Entities If a domestic or a foreign person establishes a
company in Croatia, the company is considered to be a domestic legal entity and it may acquire real estate ownership
rights irrespective of whether the real estate is acquired for business operations or for another purpose.
Foreign persons are also allowed to acquire mortgage rights on real estate. Provided the condition of reciprocity
is met, foreign natural persons or legal entities are free to acquire real estate in Croatia. The acquisition
of real estate ownership rights is regulated by the Property and Other Proprietary Rights Act, and has to
be approved by the Ministry of Foreign Affairs.
Business Operations of Foreign Companies The Companies Act provides special stipulations
covering foreign companies and sole traders (headquartered outside Croatia) who carry out business activities
within the territory of Croatia. As a rule, foreign companies and foreign sole traders enjoy the same
rights as domestic legal entities in their operations within the territory of Croatia. The only condition that
must be met when starting such operations is that a branch must be established. Branches do not have the
status of legal entities. All the rights and obligations stemming from their business operations are trans-
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