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Administrative law

Law firm Vaić & Dvorničić Ltd. > Administrative law

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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Sick leave and inspection control

Sick leave, or temporary work incapacity, is one of the most common employment-related issues and often a source of uncertainty for both employees and employers. The onset and duration of temporary work incapacity are determined by the selected primary healthcare physician, who assesses the period of incapacity based on the type of illness or other reason for inability to work, in accordance with the insured person’s health condition and medical indications. In other words, only the selected primary care doctor is authorised to determine the beginning and end of temporary work incapacity. The period of temporary work incapacity for which the insured...

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EU Citizens and Health Insurance in the Republic of Croatia

Citizens who receive a pension from an EU Member State are entitled to use health insurance in the Republic of Croatia – thanks to EU regulations on the coordination of social security systems. These rights are governed by two key regulations: Regulation (EC) No. 883/2004 on the coordination of social security systems Regulation (EC) No. 987/2009 (implementing regulation) According to these regulations: “A person receiving a pension or pensions under the legislation of one or more Member States who is not entitled to benefits in kind under the legislation of the Member State of residence shall nevertheless receive such benefits for themselves and their family...

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Short-term stay of third-country nationals in the Republic of Croatia

In the Republic of Croatia, the Foreigners Act is in force, which regulates the conditions for the movement of third-country nationals within the territory of the state.Third-country nationals are defined as foreigners who are not nationals of the Member States of the European Economic Area (the European Union, the Principality of Liechtenstein, the Kingdom of Norway, the Republic of Iceland) or the Swiss Confederation, and who hold the nationality of a third country or are stateless persons.Since the Republic of Croatia is part of the Schengen area, the Schengen Borders Code also applies to third-country nationals. A short-term stay refers...

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Compulsory and supplementary health insurance in the Republic of Croatia

In Croatia, all citizens are legally required to be included in the system of compulsory health insurance, administered by the Croatian Health Insurance Fund (HZZO). This type of insurance provides access to basic healthcare services, but it does not cover all treatment costs. For this reason, many individuals choose to purchase supplementary health insurance to avoid co-payments for doctor visits, hospital stays, or prescribed medications. Supplementary insurance is offered by the HZZO at a fixed price, and it is also available from other insurance providers, who often offer different packages and benefits. Compulsory health insurance Compulsory health insurance in Croatia is administered by...

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Overview of the Croatian healthcare system

The primary objective of the healthcare system is to improve public health, prevent diseases, enable timely diagnosis, ensure effective treatment, and provide rehabilitation. It is founded on the principles of solidarity and universality, and its main governing body is the Croatian Health Insurance Fund (HZZO). Healthcare services in the Republic of Croatia are delivered at the primary, secondary, and tertiary levels, as well as through public health institutes. In addition to public institutions, private healthcare providers also operate within the system. These private entities often lease premises in state-owned health centres and must meet specific criteria, including a minimum number of...

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Croatian employment service – rights and obligations of unemployed persons

The status of an unemployed person in the Republic of Croatia entails certain rights and obligations, which are regulated by legislation and the regulations of the Croatian Employment Service (HZZ). One of the key rights is the right to financial compensation, with clearly defined conditions for its entitlement. Additionally, unemployed persons have access to counseling services, education, and health insurance. Right to financial compensation The right to financial compensation during unemployment in the Republic of Croatia is regulated by the Labour Market Act and represents a key form of financial protection for unemployed persons during periods without employment. To be eligible for financial...

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Croatian employment service – active employment policy measures

The Croatian Employment Service (Hrvatski zavod za zapošljavanje) is a public institution that regulates the labor market in Croatia, providing support to unemployed individuals and employers through counseling, financial assistance, and training programs. Active employment policy measures are introduced at the beginning of each calendar year. For each measure, the Croatian Employment Service determines the following: target groups, the amount of support (which depends on the education level of the subsidized individual), the minimum gross wage, and the duration of the measure Measures catalog for 2025 Employment support and Green/Digital employment support – This support is intended for employers who hire vulnerable groups,...

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Immigration to Croatia

Croatia is positioned centrally in Europe, which means that the majority of Central European countries can be easily reached by car from northwestern Croatia. For example, from Rijeka you can reach by car in 6-8 hours Milan in Italy, Lugano in Switzerland, Munich, Germany, Vienna in Austria, Bratislava in Slovakia, Budapest in Hungary. Also has a very mild climate suitable for life, and a very low rate of street crime. Considering the above mentioned, Croatia has very good preconditions for immigration, especially business people outside the EU who want to create a new business and the vital center of the EU,...

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Amendments to the foreigners act

Amendments to the Aliens Act

The draft proposal for amendments to the Foreigners Act was open for public consultation from February 28 to March 14. The purpose of these amendments is, among other things, to align with the new EU Blue Card Directive, which aims to facilitate the arrival of highly skilled labor. Additionally, the goal is to increase the efficiency of employing foreign workers, better regulate employment conditions for foreign workers, protect domestic workers, ensure the return of emigrated Croatian citizens, and secure the necessary workforce for the economy. The law entered into force on March 15th, 2025. Changes The validity period of residence and work...

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