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News

Law firm Vaić & Dvorničić Ltd. > News (Page 2)
17 April
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Matrimonial property

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

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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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25 March
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Croatian Law on Investment Promotion – Tax support

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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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12 March
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Contractual non-competition agreement and contractual penalty according to the Labor Law

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Non-compete agreement A contractual non-competition agreement exists when the employer and the employee agree that for a certain period after the termination of the employment contract, the employee may not be employed by another person who is in market competition with the employer, and that he may not, for his own account or for the account of a third party, enter into business with which he competes with the employer. It must be concluded in writing and cannot last longer than two years from the date of termination of the employment relationship. It does not bind the employee if the purpose of...

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12 March
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Extraordinary termination of the employment contract

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Extraordinary termination is termination without the obligation to comply with the prescribed or agreed notice period. The employer and the employee have a justified reason for the extraordinary termination of the employment contract concluded for an indefinite or fixed period, if due to a particularly serious violation of an obligation from the employment relationship or some other particularly important fact, while considering all the circumstances and interests of both contractual parties, the continuation of the employment relationship is not possible. Each party has the right to demand compensation for damages due to non-fulfilment of the obligations assumed by the employment contract...

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09 March
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Stay and Work of Foreigners in Croatia

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Temporary Stay of Foreigners in Croatia Foreigners who wish to stay in Croatia for more than 3 months or work in Croatia must regulate their stay in the country. Reasons for which a temporary stay may be granted: Family reunification Education (secondary level) and studies Scientific research Humanitarian reasons Employment Work of a transferred worker The application for a temporary residence and work permit can be submitted by the employer to the police authority or police station at the foreigner’s future place of residence. The temporary stay permit is issued for a period of up to 1 year. The application for an extension of the temporary residence permit must be submitted...

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09 March
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Foreign Workers in the Republic of Croatia

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Regarding the legal regulations for foreign workers in Croatia, there are several categories of foreigners. 1. EU Citizens and Their Family Members This group also includes citizens of European Economic Area (EEA) countries as well as citizens of the Principality of Liechtenstein, the Kingdom of Norway, Iceland, and Switzerland, along with their family members. These individuals can work and provide services in Croatia without the need for a residence or work permit or registration, in accordance with the fundamental principles of freedom of services and free movement. If EEA citizens temporarily stay in Croatia for work (from 3 months up to a year),...

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09 March
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Dissolution of an Inheritance Community

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After a probate procedure, heirs generally become co-owners of a property, which may be a piece of land, a house, or an apartment. For an individual heir to use their inheritance, rent, sell, or mortgage the property independently and without the consent of the others, they must be the owner of the entire property. The co-owners can therefore try to amicably divide the property into parcels or the house into floors or apartments, so that each co-owner's share in the property forms a complete unit. However, if the amicable division does not occur, the co-owners can initiate an uncontested procedure to dissolve...

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09 March
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Exit of a Shareholder from the LLC

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When a shareholder exits, their involvement in the company and all related rights and obligations end. Generally, the exit is associated with a valid reason for leaving, but a shareholder can also leave the company by selling their shares, provided there are no restrictions. The Croatian Companies Act (HGG) provides two types of exit from the LLC. One type is already included in the company's Articles of Association. The second type allows a shareholder to request an exit through a lawsuit if the legal conditions are met. Lawsuit for Exit from the LLC If the Articles of Association do not provide an exit option, any...

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09 March
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Apartment ownership of foreign naturalpersons in Croatia – practical issues

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According to the positive regulations, foreign natural persons who are the apartment owners in Croatia still cannot categorise their apartments, neither rent them and pay tax for it. Therefore, foreign natural persons often use their apartments to host either their real friends or fictive friends, and that way illegally earn their weekly rent in cash. At the same time, one should bear in mind that a house owner can host his friends in apartment under condition of registering them with the tourist board or the police within 24 hours after the arrival and signing of within 24 hours after the departure as...

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