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Legal Articles

Vaic Law Office
Vaic Law Office > Legal Articles (Page 5)
26 October
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Temporary employment agency and posting of agency workers abroad

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Temporary Employment Agency The operation of temporary employment agencies in the Republic of Croatia is regulated by the Labor Law. According to Article 44, paragraph 1 of the aforementioned law, a temporary employment agency is an employer who, based on a worker assignment agreement, posts a worker to another employer (the user) for the temporary performance of tasks. The posted worker is an employee whom the agency employs for posting to the user. The agency may carry out worker postings to users provided that it is registered in accordance with special regulations and entered in the records of the ministry responsible for...

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16 October
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Long-term residence and permanent residence of foreigners in Croatia

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Third-country nationals who have a regulated residence in the Republic of Croatia can apply for long-term residence or permanent residence after a certain period of time. Long-term Residence Long-term residence may be granted to a third-country national who, on the day of submitting the application in the Republic of Croatia, has continuously held an approved temporary residence, asylum, or subsidiary protection for five years. It is considered that a third-country national has continuously resided in the Republic of Croatia even if they have been absent from Croatia multiple times for a total of up to ten months within a five-year period or...

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09 October
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Short-term and temporary residence of foreigners in the republic of Croatia

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Third-country nationals (citizens of non-EEA countries) in the Republic of Croatia can obtain the right to short-term or temporary residence, as well as long-term and permanent residence. This text will focus on short-term and temporary residence. Short-term Residence Third-country nationals can stay in the Republic of Croatia on a short-term residence for up to 90 days within any 180-day period (90 days of stay can be used either once or multiple times). In addition to their stay in Croatia, these 90 days include stays in any Schengen Area member state. During their short-term stay, third-country nationals must have registered accommodation, and the person...

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02 October
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Changes on the side of the debtor

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In the context of legal relationships, changing the subject of the obligation on the part of the debtor can be done in several ways. The obligation of a debtor under a contract can be transferred to a third party – by assuming debt, accessing debt, or assuming fulfillment. Debt assignment and assumption agreement By assuming debt, the acquirer takes the place of the previous debtor, and the latter is released from his obligations. The debt is assumed by a contract between the debtor and the acquierer, if the creditor has agreed to it. So, although the parties to the debt assumption contract...

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21 September
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Purchase of real estate in the republic of Croatia for foreigners

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Foreign nationals, i.e. foreign natural and legal persons, may acquire property on the territory of the Republic of Croatia. To be able to do so, certain legal requirements must be met. The difference between EU and non-EU citizens Citizens of EU member states can easily purchase real estate in the Republic of Croatia. Since Croatia’s accession to the European Union, citizens of the member states have been treated in the same way as Croatian citizens with regard to the purchase of building land and all related matters (homes, apartments, etc.). As far as agricultural land is concerned, citizens of the member states...

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07 September
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Tax-deductible expenses in a Croatian d. o. o.

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Limited liability companies are subject to corporate income tax. The difference between the increased or reduced revenue and expenditure according to the provisions of The Corporate Income Tax Law is used as the basis for tax assessment. There are several ways to reduce the tax basis. One of the best ways to do this and at the same time reward company employees is through tax-free payments to employees. Such payments increase the cost to the company, resulting in less tax being paid. The employer has a wide range of tax-free payments available to pay out to the employee. They are as follows: -...

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31 August
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Liquidation of the limited liability company

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The procedure of calculating and dividing the assets of a company in which the reasons for termination have appeared is called liquidation, and it is carried out if the members do not agree on a different method of calculation and division or if the company is not declared bankrupt. It is carried out by all members of the company as liquidators, if the decision of the members or the memorandum does not stipulate that it should be carried out by individual members of the company or other persons. Liquidators must complete the current operations, collect the company's claims, monetize the remaining assets,...

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28 August
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A simple limited liability company (j. d. o. o. )

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Establishment of a simple limited liability company (j.d.o.o.) is a procedure by which a legal entity is established that enables owners to operate under the protection of limited liability. This type of company is often a preferred option for small and medium-sized enterprises, as it provides some certainty and flexibility in the conduct of business. The business of a simple d.o.o. can be started with the lowest amount of share capital of EUR 1,00 paid in full in cash, and the lowest amount of business stake is also EUR 1,00. A simple limited liability company is established using pre-prepared forms and...

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25 August
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A limited liability company (d.o.o.)

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Limited liability company is the most common form of company in the Republic of Croatia. It is defined by Article 385 of the Law on companies as a company in which one or more legal or natural persons contribute to the pre-agreed share capital. The minimum amount of the share capital of a limited liability company is 2,500.00 EUR. Establishing a limited liability company makes sense for several reasons. One of them is certainly tax. Thus, the d.o.o. that generated revenue up to 995,421.06 EUR pays the tax at the rate of 10%, while the d.o.o. that generated revenue above 995,421.06 EUR...

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29 June
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Tax specifities and differences between Germany and Croatia

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This article lists the tax specifics, i.e. the differences between the Federal Republic of Germany and the Republic of Croatia in terms of real estate levies, inheritance taxes and tax liabilities depending on the taxpayer’s residence. The differences in the tax arrangements of these two countries are not negligible, thus we present some of them. Real estate levies In the Republic of Croatia, property owners do not pay the annual real estate tax, unless it is a holiday home, but a fee is paid in the form of a utility fee, which must be determined by a decision on the utility fee....

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