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 supports for micro-entrepreneurs are specifically prescribed by this Law; however, it is necessary to highlight the possibilities of obtaining supports for larger investors as well.
Tax support
For investments in the amount of 150.000,00 EUR to 1.000.000,00 EUR, the profit tax rate for the beneficiary is reduced by 50% of the prescribed profit tax rate for a period of up to ten years from the year of the start of the investment, with the condition that at least five new jobs are created related to investment, i.e. for investments in centres for the development of information and communication systems and software in accordance with this Law, and for the amount of 50.000,00 EUR to 1.000.000.00 EUR the profit tax rate is reduced by 50% of the prescribed tax rate on profit for a period of up to ten years from the year the investment began, with the condition of opening at least ten new jobs related to the investment.
For investments in the amount of 1.000.000,00 EUR to 3.000.000,00 EUR, the profit tax rate for the beneficiary is reduced by 75% of the prescribed profit tax rate for a period of up to ten years from the year the investment began, with the condition of opening at least ten new jobs related to investment.
For an investment in the amount of more than 3.000.000,00 EUR, the profit tax rate for the beneficiary of the support is reduced by 100% of the prescribed profit tax rate for a period of up to ten years from the year of the start of the investment, with the condition of opening at least fifteen new jobs related to investment.
The total amount of tax support that the beneficiary of the support can use during the period of use of tax support is determined in the absolute amount of the difference between the calculation of the due amount of profit tax calculated based on the regulations regulating the profit tax and the amount calculated based on this Law, respecting the maximum intensity of the support.
Beneficiaries of supports are obliged to consider the minimum period of preservation of the investment project in question and the number of newly created jobs determined by
this Law, therefore, for more detailed information, it is recommended to contact a legal expert.