Why invest in Croatia and the City of Rovinj-Rovigno?
Cost competitiveness
Competitive business expenses:
Availability of highly trained workforce guaranteeing high productivity and the related lower costs.
CROATIA IS ONE OF ONLY FIVE EU COUNTRIES THAT HAS MARKED THE REDUCTION OF LABOUR COSTS IN THE PAST FEW YEARS!
The quality of Croatian experts has long been recognised worldwide. They are knowledgeable, innovative, enthusiastic and committed to excellence in all aspects of business process. These characteristics are integrated into our business activities and initiatives. Usually starting as local ideas, they turn into global products or business models.
Attractive investment destination
More than 15,000 foreign companies chose Croatia as their business location
Incentives equalling as high as 60% investment costs
Tax relief for retained earnings
Foreign companies continuously expand their business operations in Croatia
8O%
Croatia has attractive tax incentives, it is signatory of double taxation avoidance agreements with numerous countries and it is part of the single EU customs area
0% corporate income tax up to 10 years
No customs for the EU members
Double taxation avoidance agreement with as many as 55 countries
Location
Croatia boasts an exceptionally favourable geostrategic position. For numerous countries, it is the gate accessing the EU market.
The shortest transit transportation time from the Far East to Central Europe (Rijeka, Pula, Zadar, Split, Šibenik, Ploče, Dubrovnik)
Several of the most important Pan-European Corridors pass through the territory of the Republic of Croatia (VII, X, Vb, Vc)
4 river harbours belong to the Rhine-Main-Danube navigation route (Vukovar, Sisak, Slavonski Brod, Osijek)
Access to a market of 500 million people
Talent
Croatia offers highly efficient, innovative, highly trained and multilingual workforce that will guarantee your business success!
High quality of education – The University of Zagreb has been listed among 500 best universities according to the Academic Ranking of World Universities 2012
The number of patents in Croatia is above the average among the EU member countries.
Did you know that the necktie, the fountain pen, the parachute and the MP3 are only some of the Croatian inventions?
Investment guide
Dear investors, please check the following link http://www.aik-invest.hr/en/investment-guide/ for more details and the official information provided by the Agency for Investments and Competitiveness to learn about investing in Croatia.
Tax and customs system
Tax System
Tax treatment of residents and non residents is equal. Taxation of non residents is conducted respecting double taxation avoidance contracts which Croatia has signed with 61 countries.
Basic tax types in Croatian taxation system:
Taxes | Tax rate |
Corporate Income Tax (Profit Tax) Tax rate is 12% if a company generated revenues up to 3.000.000,00 kuna in the tax period, or 18% if the revenues in the tax period were higher than 3.000.000,01 kuna. |
12% and 18% |
Corporate income tax by withholding is 15%, except for dividends and profit shares for which the tax rate is 12%. The tax rate is 20% on all types of services paid to persons or companies who have headquarters or control of operations in countries considered as tax havens or financial centres, except the EU member states and the countries that have signed and implemented contracts on double taxation avoidance with Republic of Croatia, and the country is published in the list of states issued by the Minister of Finance. |
12% 15% 20% |
Capital Income Tax from interests, as well as from capital gains is paid at the tax rate 12%. | 12% |
Income Tax Annual income tax on taxable income up to 210.000,00 kn is paid at the rate of 24%, while the amount that exceeds 210.000,00 kn is paid at the rate of 36%. |
24% and 36% |
Value Added Tax is 25%. Reduced rate of 5% is applied to certain categories of products (bread, milk, books, medicines, medical equipment, newspapers and magazines). Reduced rate of 13% is applied to the following services: tourist accommodation, water supply, electricity supply, collecting mixed municipal waste, as well as certain categories of products (edible oils and fats, baby food, children’s car seats, seedlings and seeds, fertilizers and pesticides, and food for animals, except for pets). |
25% |
Real Estate Transfer Tax Real Estate Transfer Tax is paid at a rate of 4%. |
4% |
Tax exemptions
Corporate Income tax (withholding) is not paid if the compensation is paid as income attributed to domestic business unit of foreign entrepreneur.
Taxpayers who perform their business activities in the area of the City of Vukovar (determined in accordance to a special legislative on the reconstruction and development of the City of Vukovar), and who employ more than five permanent employees, under the condition that more than 50% of its employees have residence and live in the supported areas, classified in the first group according to their level of development, or in the City of Vukovar, do not pay corporate income tax.
Taxpayers who perform their business activities in the local self-government areas classified in the first group of development (determined in accordance to a special legislative on regional development of the Republic of Croatia), and who employ more than five permanent employees, under the condition that more than 50% of its employees have residence and live in the supported areas, classified in the first group according to their level of development, or in the City of Vukovar, pay 50% of the prescribed tax rate.
Real Estate Transfer Tax is not paid when the property is entered into the company’s equity capital nor (in accordance with the provisions of the Companies Act), when the property is acquired in the mergers and acquisitions, nor in the process of dividing a company into several companies.
More information about the Croatian taxation system can be found on the web pages of the Tax Administration.
Customs system
By the accession of the Republic of Croatia to the European Union, the area of the Republic of Croatia became a part of a single customs territory of the Union. The entry into a single customs territory of the EU means that, as of July 1, 2013, all customs control over entry of goods or trade between Croatia and the other Member States is abolished. Trade between domestic goods between persons in different Member States is not considered as imports and is not a subject to customs procedures and supervision.
The subjects of customs control are the goods brought from countries that are not EU members and which are subjects to customs supervision from the time of its entry. These goods require customs-approved treatment or use. Implementation of the new Customs Code, according to the EU Regulation 952/2013 started on 1 May 2016. Given that the application of the provisions of the Customs Code requires the development of new applications, or refinement of existing applications, Commission Implementing Decision of the Work Programme for the Union Customs Code of April 29, 2014 adopted the program that contains a list of electronic systems that need necessary transitional period that may last till December 31, 2020.
Investment incentives
All the currently offered state supports for your investments in the Republic of Croatia are listed on the following link http://www.aik-invest.hr/en/incentives/