Start Your Business in Croatia: A Strategy for Success

Why Launching a Business in Croatia is a Smart Move

Croatia, nestled in the heart of Europe, offers fertile ground for business development. Its strategic location, developed infrastructure, and qualified workforce make it an attractive destination for initiating operations across various industries. This overview explores key aspects to consider when launching a business in Croatia, including geographical advantages, economic and demographic structure, and the business environment.

Geographic Position and Advantages

Strategically positioned at the crossroads of important European trade routes, Croatia's membership in the EU and recent entry into the Schengen Zone further facilitate the movement of people and goods. Its developed maritime routes, especially in the Adriatic, and a modern highway system connect major cities and provide excellent road connectivity with neighboring countries. International airports ensure global connectivity, while the railway network, currently undergoing reconstruction, promises to further enhance logistics and transportation.

Economy and Demographics

Croatia boasts a high literacy rate of over 99%, resulting in an educated and skilled workforce. Service industries linked to tourism dominate in coastal regions, while the IT sector is most developed in urban centers. Unemployment varies by region, with a tendency for lower rates in larger cities. The available workforce is most abundant in service industries and tourism, with the highest demand and fluctuation in the market for IT sector personnel.

Business Environment

The tax system in Croatia is competitive, with a corporate tax rate of 18% for revenues above 3 million kunas and 12% for lower revenues, and a standard VAT of 25% with lower rates for certain goods and services. The state offers numerous incentives for entrepreneurs, including subsidies for self-employment and investment incentives. Along with favorable investment loan rates, the prices for commercial building land are also attractive: an average of 20 euros per square meter in the continental part and 50 euros on the coast, varying depending on the location's attractiveness. With a minimum wage of 840 euros gross, Croatia represents a very cost-effective location for investments. 

If you're looking to start a business or open a branch in Croatia, we offer temporary management services, which can include:

-    Business consulting in accordance with the current legal framework and market situation, tailored to the specifics of the industry and business requirements,

-    Fieldwork: setting up a company, finding a location, obtaining necessary documentation for regulators, communicating with local business partners and suppliers, negotiating with contractors, outfitting business premises,

-    Organization and administration: arranging business meetings, finding accommodation, recruiting necessary personnel,

-    Reporting: qualitative and quantitative analysis of options, situation analysis, action plans, and reporting on results.

The service fee depends on the scope of work, authority, and deadlines, starting from 400.00 EUR per week. The minimum possible engagement is for a period of one week, with a compensation option through equity participation for longer commitments.