Incentives for investment in the Republic of Croatia

Investment incentives are regulated as follows:

the Investment Promotion Act (Official Gazette 102/15, 25/18, 114/18, 32/20) regulates the granting of state aid to encourage investment. The objective and purpose of investment promotion is to stimulate economic growth and economic policy of the Republic of Croatia, its inclusion in international trade, and to strengthen the investment and competitiveness of Croatian entrepreneurship, while the objective and purpose of investment promotion at the level of economic entities is to build a competitive, transparent and attractive investment support system for legal or natural persons. Grants regulated by this Act relate to investment projects and improving the competitive capacity in:

  • production and processing activities
  • development and innovation activities
  • business support activities
  • high value-added service activities.

Moreover, grants regulated by this Act refer to projects that ensure environmentally safe entrepreneurial activity and one or more of the following objectives:

  • introduction of new equipment and modern technologies
  • higher employment and employee training rates
  • development of higher value-added products and services
  • balanced regional development of the Republic of Croatia.

The Act on Improving Entrepreneurial Infrastructure (Official Gazette no. 93/13, 114/13, 41/14, 57/18) regulates the issues of determining entrepreneurial infrastructure, the type and categorization of entrepreneurial zones and entrepreneurial support institutions, the establishment of the register of entrepreneurial zones and entrepreneurial support institutions, i.e., the development of a systematized database of entrepreneurial zones, entrepreneurial support institutions, and a support system, i.e., the preconditions and criteria for granting aid for the improvement of business activities of entrepreneurial zones and entrepreneurial support institutions. The objective or purpose of improving the entrepreneurial infrastructure and business environment is to stimulate economic growth through the planning and timely construction of entrepreneurial infrastructure that serves balanced regional development and faster growth of entrepreneurship, and to increase investment and employment within the area where entrepreneurial infrastructure is built or planned. At the level of economic entities, the objective and purpose of improving the entrepreneurial infrastructure and business environment is to create entrepreneurial areas with full infrastructure, a high level of location competitiveness that includes quality transport connections of these areas with major transport routes, and a system of incentives and benefits for doing business in these areas at both local and regional level.

The Small Business Development Promotion Act (Official Gazette No. 29/02, 63/07, 53/12, 56/13, 121/16) regulates the bases for the application of economic policy incentive measures aimed at the development, restructuring and market adjustment of small businesses.

USEFUL LINKS:

Ministry of Economy and Sustainable Development https://gospodarstvo.gov.hr/

Invest Croatia http://investcroatia.gov.hr/en/

Incentives in Croatia http://investcroatia.gov.hr/poticaji-2/

European Structural and Investment Funds https://strukturnifondovi.hr/