Why invest in Croatia?

Croatia, as the only country in the world which is central European, Danubian and Mediterranean at the same time, with its unique geographical location links Europe to the world. Modern transport and energy infrastructure, untarnished soil, unpolluted sea and rich sources of fresh water provide the foundations for Croatia to build its future on and further develop in the European and world markets.

 

Unique geographical location, modern infrastructure, political and economic stability, competent and highly educated workforce are only some of the reasons to invest in Croatia.

Easier access to European and world markets

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Croatia is situated at the heart of Europe, only two or three hours air distance to any European destination. With its unique geostrategic position and the farthest reaching European sea inlet, Croatia is a gateway to Central and Eastern Europe providing an easy access to European and world markets.

 

Croatia offers the shortest route over land and sea connecting Europe and other overseas destinations, thus making the sea route from Europe to the Middle and Far East advantageous offering up to several days shorter transit times than those of northern European ports.

Modern transport infrastructure

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Croatia has highly developed road and rail network, the network of international sea ports of great importance, the network of river ports and airports, as well as inland waterways and intermodal terminals.

 

The network of modern motorways place Croatia together with leading European countries, and let’s not forget that there are three Pan-European international corridors passing through Croatia, thus making it an essential part of all major European and international transport routes. The country is 100% digitized, with its entire territory covered by broadband Internet. Its highly developed natural gas distribution network places it at the very top of European countries.

Land connection to all European transport routes:

29,547 km of roads

2,726 km of rail network

 

2-3 hours air distance to any European destination:

7 international airports (Zagreb, Split, Dubrovnik, Zadar, Rijeka, Pula, Osijek) and 2 airfields (Mali Lošinj, Brač)

 

The inmost sea into the heart of European continent

6 seaports (Rijeka, Ploče, Šibenik, Zadar, Split, Dubrovnik)

4 river ports (Vukovar, Osijek, Slavonski Brod, Sisak)

 

One of the most developed natural gas distribution networks in Europe

100% digitized country

100% broadband Internet coverage

Reliable investment and business environment

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The Croatian legal framework governing foreign investment has been designed in a way that does not make any difference between domestic and foreign investors. All possibilities in relations between domestic investors are also open to foreigners investing capital in Croatia.

 

Moreover, foreign investors enjoy additional guarantees that are not given to domestic investors. The Croatian Constitution provides that no law or other legal document shall reduce the rights granted to a foreign investor at the time of investment in Croatia. It also guarantees the free repatriation of profits or capital upon fulfillment of all legal obligations.

 

Being a full member of NATO and the 28th member of the European Union (1 July 2013), Croatia guarantees stability and the safety of business activities. Croatian legislation, harmonized with the basic postulates of the European Union, ensures business activities of the highest standard and opens the possibility of using EU funds, while agreements for the avoidance of double taxation signed with over 50 countries, provide  Croatia with additional benefits.

Stimulating investment climate

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The Republic of Croatia strongly supports investments. With the aim of stimulating investments in manufacturing sector activities, technology centres, strategic business support and high value-added services as well as tourist activities, investors are offered various incentives.

 

The incentives offered for business activities to investors range from tax incentives, incentives for employment and education, to additional incentives for investment in areas of special state concern.

 

Investments in the sector of industry, especially in the not so developed parts of the country, are strongly supported in order to incite the creation of new job opportunities and preconditions for strengthening export-oriented sectors.

 

Depending on the amount of investment and the number of newly created workplaces, investors are granted the following incentives:

 

  • Tax incentives – Partial or full exemption from profit tax in the period of up to 10 years, depending on the amount of investment.
  • Employment incentives- Up to 9,000 euros per employee, depending on unemployment rates in the investment area
  • Grants- Coverage of up to 80% of employee’s training costs, depending on the type of training and the size of the business
  • 20% regular profit tax rate -> 10 – 0% profit tax rate for investors

 

The legal framework for the investment is regulated by the Act on Investment Promotion and Enhancement of the Investment Environment. More about the incentives regulated by this Act you can find here.

Highly educated, multilingual and competent workforce

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Croatia is a country of multilingual and highly educated workforce. With 56 high-education institutions, out of which 7 are universities, Croatia offers a pool of various skilled and educated workforce. Croatia also has the highest percentage of persons in the age group 20 to 24 who have completed at least secondary school education.

 

Did you know that the University of Zagreb, comprised of 34 faculties, is one of the oldest universities in this part of Europe providing education to students continuously since its establishment in 1669.

 

According to the Human Development Index, Croatia ranks 47 out of 187 countries. In the period from 1990 to 2012, Croatia showed a 12% increase, that is an average annual increase of about 0.5%.

 

EDUCATION in numbers:

  • 7 public universities with over 150,000 students a year; over 190,000 students in college and university programmes a year
  • 99% of secondary school students learn English as a foreign language (Eurostat)
  • 95.7% of young people with secondary school education (20-24 years old)
  • 56 high-education institutions: (7 universities)
  • 152,857 students in 2011/2012
  • 36,488 graduates in 2011

High quality of life

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Croatia is truly a unique country – nowhere in the world can three different climate zones – continental, mountainous and Mediterranean, be found in only 400 km (the distance between the North and South of the country). From hilly and gentle Zagorje in the North, through vast fertile plains of Slavonia in the East, Lika and Gorski Kotar rich in forests and rivers, to Dalmatinska Zagora, bounded by mountain ranges and typical Dalmatian karst, all the way to its indented coastline stretching from Istria to South Dalmatia with over a thousand islands, Croatia is truly a world’s treasure.

 

Good transport connection between the continental and coastal part of the country – morning skiing at Bjelolasica, and the experience of one of the most beautiful sunsets on the Adriatic coast only a few hours later – the abundance of cultural activities and historic heritage, the proximity of other European cultural and business centres, clear water and air, traditional and organic growing of agricultural products and healthy Mediterranean lifestyle provide all the conditions necessary for a pleasant, high quality life anywhere in Croatia.