Croatian Economic Diplomacy

GUIDE FOR INVESTORS IN CROATIA

Attracting investments represents one of main economic priorities of the Government of the Republic of Croatia. In this respect, the basic aims of strategic economic developments are: increase in GDP; proportional regional employment; and balanced foreign trade. In this context, it is essential to increase the amount of investments, both domestic and foreign, and therefore, the adoption of the new Law of Investment Incentives represents a key step forward.

The new Law provides transparent and integral system of incentive measures, and tax and custom incentives aimed at strengthening production and processing activities, the use of new technologies, stepping-up development and research activities, and the stimulation of employment. Its entry into force will extend stimulus, security and stability grounds for investors in Croatia. The Law will in addition harmonise State and regional support with the European Union legislation. It is focused to encourage successful entrepreneurs and investors who are generators of newly created values. Likewise, we would like to mention that soon procedures will be undertaken for the amendments in the Law of Free Zones, which will conform the system of incentives which are acquired through various legal acts.

Incentive measures are divided into six groups:

• tax incentives;
• customs incentives;
• support for justified costs relating to new job creation relating to the investment;
• support for justified costs for the additional education of the workforce relating to the investment;
• incentive measures for the establishment and development of Technology and Innovation Centres and activities for strategic business support;
• incentive measures for large investment projects which are of important economic interest.

The attraction of investment represents a methodical and coordinated group of measures and activities which include a large number of entities which, each in it framework of competence, participates and contributes in the realisation of the defined priorities. Even though the Ministry of Economy, Labour and Entrepreneurship and the Trade and Investment Promotion Agency are the competent institutions relating to the investment incentives, a crucial role, in particular in attracting foreign investment, by all means has the Croatian Economic Diplomacy, that is economic counsellors in the Diplomatic/Consular Missions of the Republic of Croatia and employees of the Directorate for International Economic Cooperation in the Ministry of Foreign Affairs of the Republic of Croatia, which has in its everyday activities the promotion of the economic interests of the Republic of Croatia, through direct contact with institutional partners and support to potential investors, by giving quality information regarding the legal framework and opportunities for investment in the Croatian Economy.

The aim of this column is Dear Users and Potential Investors, to give correct, relevant and up-to-date information in the domain of investments. We would also like to invite You to send your questions in the column „Questions and Answers“ - Ask the Directorate.

More details about this topic can as well be found on Trade and Investment Promotion Agency website.