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Author: Admin

Law firm Vaić & Dvorničić Ltd. > Articles posted by Admin

The Mediation Act and what it specifically brings for parties before filing a lawsuit

Mediation is not always mandatory, but in certain matters it becomes procedurally important The new Mediation Act does not introduce a general obligation to mediate before every lawsuit. Its practical importance is narrower, but very specific: namely, before initiating civil proceedings arising from probate proceedings and before initiating civil proceedings for damages in small-value disputes, the parties are required to attempt to resolve the dispute through mediation. This does not mean that they must conclude a settlement. The Act requires an attempt, that is, participation in the prescribed preliminary step before filing a lawsuit. When the parties are nevertheless not required to...

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Affordable Housing Act

The Affordable Housing Act introduces a new legal framework for publicly supported housingconstruction, the rental of apartments under affordable conditions, support for a first residentialproperty, and the activation of vacant apartments. It repeals the previous Act on SociallySupported Housing Construction, better known as POS, subject to transitional rules forproceedings that have already been initiated. The concept of affordable housing For the first time, the Act systematically defines affordable housing. The key criterion is not onlythe market price of an apartment, but the total monthly housing burden. Housing is consideredaffordable where the rent, or the loan instalment or annuity, increased by average utility...

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Posting and assignment of third-country workers from Croatia to Germany

The employment of workers from third countries, for example from India, Nepal or the Philippines, first in Croatia and then their engagement in work in Germany, is an increasingly common business model. Such a structure is not prohibited in advance, but it is legally sensitive because it is simultaneously subject to Croatian rules on the residence and work of foreign nationals, European rules on the posting of workers, and German rules on minimum working conditions, notifications and the hiring-out of workers. Lawful start in Croatia The starting point of any permissible model is the lawful work of the worker in Croatia. A...

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Energy and real estate: three typical risk situations

As of 1. 1. 2026., the new Energy Efficiency Act applies, noting that certain provisions will enter into force on 1. 1. 2027. (Art. 43(6)–(8)). Although this is primarily a statute setting public policies, measures and instruments, its practical impact is clear: energy efficiency is increasingly finding its way into your decisions and contracts, whether you are selling, leasing, renovating or financing a property. Energy costs and the predictability of consumption have already become part of value and risk assessments, and documentation that previously passed on trust is now increasingly subject to formal checks. In practice, the risks most often...

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Real estate investments after 1 January 2026: key changes under the new ZPU

As of 1 January 2026, the new Spatial Planning Act applies, and the previous act has been repealed. Although at first glance it may seem like a technical statute for planners and public administration, the changes are very concrete for investors and landowners: faster and more digital procedures, clearer deadlines, a stricter regime on the coast and in tourism, and mechanisms that can unblock projects that have been stuck for years due to infrastructure. One of the biggest changes is a full shift towards digital planning. Spatial plans are prepared and adopted in the information system through ePlanove, and the decision...

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New Building Act and Faster Permits

As of 1 January 2026, the new Building Act is in force. In official announcements it has been emphasised that obtaining building permits should be significantly faster, with communication and monitoring of procedures through digital systems (eDozvola). In practice, for years the most time was lost not on design, but on waiting for various statements: special conditions and connection conditions (electricity, water and sewerage, transport, municipal infrastructure, etc.). The new Act is drafted so that this part of the procedure becomes predictable: it introduces deadlines, accountability and, most importantly, clear consequences when deadlines expire. The central novelty is in Article 48 of...

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Establishing a Commercial Company in the Republic of Croatia for Non-EU Nationals: Is an “Approval” Required under the Foreign Direct Investment Screening Act?

In practice, the term “foreign investment” is often equated with “setting up a company by a foreigner.” However, the legal framework distinguishes between the procedure for establishing a commercial company and the security mechanism for screening foreign investments. Company Formation and the Foreign Investment Screening Act When a person from outside the EU wants to start a company in Croatia, everything is often lumped under the same label of “foreign investment,” creating the impression that every new company must be specially approved. However, the Ministry of Finance clearly states in its information that the Foreign Investment Screening Act does not change the procedure...

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Foreign worker recruitment agencies: when are you the employer, and when are you only an intermediary?

In practice, the term “agency for the employment of foreigners” often conflates two different models: 1. The agency employs the worker for the purpose of assigning/seconding them to a user undertaking (temporary-work agency / labour leasing). 2. The agency provides recruitment/intermediation (searching, screening and matching employer and worker), but the employment contract is concluded between the client–employer and the worker. The difference is not merely terminological: it determines what records you must keep, what contracts you enter into, what you may charge, and who must meet the requirements in residence and work permit procedures. When the agency hires directly (temporary-work agency) If the agency hires...

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Legal capacity and mental Illness

In the legal system of the Republic of Croatia, there is no direct statutory definition of legal (business) capacity. Instead, the Obligations Act defines legal capacity as a person’s ability to create legal effects through their own declaration of will, and it provides that legal capacity is acquired upon reaching the age of majority. Legal capacity therefore represents the foundation for independent participation in legal transactions. However, in the case of persons with mental illnesses or other impairments affecting their ability to reason, the question arises as to the extent to which they are able to make legally valid decisions. Deprivation...

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Voidness of a contract

Voidness of a Contract Voidness of a contract refers to a situation in which a contract does not produce the legal effects that would arise if it were valid, meaning it contains such defects and violations of legal provisions that it produces no legal effect. According to the Obligations Act (Zakon o obveznim odnosima), a contract is void if it is contrary to the Constitution of the Republic of Croatia, mandatory legal provisions, or the morality of society, unless the purpose of the violated rule indicates another legal consequence or the law provides otherwise in a particular case. Any party to a contract...

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