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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As of 1 January 2026, the new Spatial Planning Act applies, and the previous act has been repealed.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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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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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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Matrimonial property

According to the Croatian Family Law, spouses can have matrimonial property and their own property. Matrimonial property is the property that the spouses have acquired through work during the duration of the marriage union or originates from this property. Therefore, the property owned by a spouse at the time of marriage is his own property. It is interesting to note that the author's work represents the own property of the spouse who created it, however, property benefits from copyright and related rights acquired during marriage represent matrimonial property, as are the winnings from games of chance. Spouses are co-owners of the matrimonial...

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Croatian Law on Investment Promotion – Supports for justified costs and other supports

Tax supports are not the only supports provided by the Law on Investment Promotion, but there are also the following types of supports for beneficiaries. Supports for justified costs of new jobs associated with the investment project For example, a support beneficiary who ensures the creation of new jobs related to an investment project in counties where the registered unemployment rate is more than 15% will be granted non-refundable financial support for the justified costs of creating new jobs related to the investment in the amount of up to 30% of the eligible costs for opening of a new job, in the...

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Croatian Law on Investment Promotion – Tax support

Pursuant to the Law on Investment Promotion, the purpose of investment promotion is to stimulate economic growth and the realization of the economic policy of the Republic of Croatia, its inclusion in international exchange flows and the strengthening of the investment and competitive ability of Croatian entrepreneurship. Beneficiaries of support are entrepreneurs (micro, small, medium, and large entrepreneurs), that is, a trading company or a natural person (craftsman) who is liable for profit tax, registered in the territory of the Republic of Croatia. Beneficiaries of investment support cannot be legal or natural persons who have been legally convicted of economic crime. Tax...

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Bankruptcy in Croatia

Financial instability is present in European as well as in Croatian capital market. Therefore legal persons are much more careful when entering into new business. One must always bear in mind the possibility of bankruptcy of his/her business associate. Thereat, all legal persons must be aware of certain legal consequences of bankruptcy: If the bankruptcy creditor, over the last sixty days prior to the bankruptcy petition or afterwards, by courts enforcement or by forced courts insurance, obtains a separate satisfaction right or similar right on debtors property within the bankrupt’s estate, this right ceases i.e. the ongoing procedure stops when bankruptcy...

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Alterations in tax laws

In February 2012, the Government of the Republic of Croatia adopted the whole package of tax law alterations that significantly change the taxpayer’s position. With the Value Added Tax (VAT) Act being changed and the current 23% tax rate increased on 25%, certain amendments to the Profit Tax Act, Income Tax Act and Contributions Act were also adopted. New, higher standard VAT tax rate of 25% entered into force on 1st March 2012 as well as a lower VAT tax rate of 10% set for edible oils and fats, children’s food, water and white sugar. From 1st January 2013 this lower...

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Act on the time limit for performance of a monetary obligation

Act on the time limit for performance of a monetary obligation entered into force on 1st January 2012, and therefore, the provision from article 174 of the Civil Obligations Act, ceased to have effect. According to this, now invalid provision that refers to commercial contracts, the debtor was liable to fulfill his monetary obligation within 30 days, unless a (shorter) time period was determined by the commercial contract. This Act now defines the time limit for performance of monetary obligations among the entrepreneurs themselves, i.e. the entrepreneurs and corporate bodies under public law, it defines legal consequences of late payments, with...

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