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Legal Articles

Limited partnership

A limited partnership is one of the forms of commercial companies in the Republic of Croatia, where two or more persons join together for the permanent performance of business activities under a common company name. At least one member (general partner – komplementar) is liable for the obligations of the company jointly and unlimitedly with their entire assets, while at least one member (limited partner – komanditor) is liable only up to the amount of their investment in the company. The company is established by a partnership agreement , which must specify the members who hold the position of general partners...

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General partnership

A general partnership is one of the forms of business entities in the Republic of Croatia. It is a business entity in which two or more persons unite for the purpose of permanently conducting business under a common company name. A member of the partnership can be any legal or natural person, with certain exceptions explicitly stated in the Companies Act (e.g., persons who have been convicted of the criminal offense of financing terrorism or money laundering for the duration of the legal consequences of the conviction, etc.). Liability of General partnership members The liability of general partnership members is...

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Croatia and OECD membership: new property ownership regime

The Republic of Croatia is in the final phase of joining the Organisation for Economic Co-operation and Development (OECD), an international organization aimed at promoting economic development and global trade. Becoming a member of the OECD brings a series of reforms in various areas, including legislation related to property ownership. A key focus is on the rights of citizens from other OECD member states regarding property purchases in Croatia. Liberalization of the real estate market for OECD Citizens JOne of the key requirements for OECD membership is the further liberalization of the economic and legal system, including easier access to the real...

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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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Real Estate Valuation

The valuation of real estate in the Republic of Croatia is regulated by the Real Estate Valuation Act, which was enacted on July 3, 2015, and has been in force since July 25, 2015. The valuation of real estate must be conducted with the diligence of a competent expert, taking into account all available evidence to ensure that the result is sustainable upon verification. Real estate valuation is used in property transactions, determining the value of collateral objects, property insurance, dissolution of co-ownership communities, investment and property value enhancement matters, encumbrance and depreciation issues, land development procedures, urban land consolidation, expropriation, and...

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Obligations of real estate lessors in Croatia

Given the rich tourism industry, which represents 1/5 of Croatia’s GDP, the owners are making the most of their properties by putting them in profitable use by short term rentals to tourists during the season. This article aims to present the methods of registration, taxation and administration for getting the most from the tourist lease. The Law on the hospitality provides simplified requirements for small lessors, who can offer the following domestic hospitality services: rooms, apartments or vacation houses leasing services, with the capacity up to 20 beds; camp leasing services with the capacity up to 10 units, but no more than 30...

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Real estate tax

Croatia, with approximately 3.87 million inhabitants, has over 2.4 million housingunits, including 600,000 unoccupied ones and 231,000 holiday homes. These figuresand the issue of long-term housing availability have prompted the government todraft a new Real Estate Tax Act. The primary aim is to reduce the tax disparitybetween income earned through labor and rental income, as rental income has sofar been taxed more favorably. This act, part of a broader tax reform, focuses onencouraging investment in productive sectors rather than solely in real estate. Thegoal is for this tax to completely replace the holiday home tax. Key changes The first change involves the...

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New act on building management and maintenance

The new Act on Building Management and Maintenance introduces a range of measures aimed at improving the condition of multi-apartment buildings in Croatia, many of which are poorly maintained, causing numerous problems for co-owners, including financial difficulties. Since the Act on Ownership and Other Real Rights came into force in 1997, there have been no detailed legal regulations for building maintenance. Instead, its rules were supplemented by the Regulation on Building Maintenance, which addressed only some aspects of maintenance. These previous provisions have proven legally inadequate and unsuitable for the complex issues of building management. The new act aims to establish...

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