Attracting foreign investors is one of the priorities of the local government in Croatia. The Strategic Investment Act contains the main provisions of the Croatian legislation related to foreign investments. Equal treatment is granted by law to all investors, both foreign and domestic. The legislation related to foreign investments stipulates the establishment of business zones in Croatia, which offer numerous advantages to potential investors. Our experts in company formation in Croatia can give you more details about the regulations regarding foreign investments.
Several laws regulate the investment environment in Croatia. These include the following: the Croatian Companies Act, the Act on Investment Promotion and the Act on Strategic Investment Projects of the Republic of Croatia. Under the provisions of this legislation, foreign investors have the same rights, obligations and legal status within a company as any domestic investor. Specific incentives are provided to foreign investors. Among these we mention the following:
• the repatriation of profits and capital upon termination of investment;
• incentives for micro entrepreneurs;
• tax incentives – the reduction of the corporate income tax rate;
• state support for development-innovation activities;
• non-refundable aid for the creation of new work places;
• non-refundable grants for the purchase of equipment and machinery in the amount of 20% of the eligible costs;
• labor incentives.
If you want to invest in Croatia and start a company, our specialists in company formation in Croatia can assist you throughout the entire process.
According to the Act on Investment Promotion and Enhancement of the Investment Environment, several tax incentives are granted to foreign investors. The most important tax measures stipulated within the Croatian legislation related to foreign investments include:
• A reduction of the corporate income tax rate to 0% if certain conditions are met;
• The enforcement of several treaties for the avoidance of double taxation;
• The real estate transfer tax is not paid when a property is bought by a Croatian company or corporation;
• Tax exemption for the reinvested profit;
• Foreign recipients of dividends from the EU are not paying withholding tax on dividends and shares in profit at the 12% rate if they own at least 10% of the capital for a continuous period of 24 months;
• State aid for research and development projects.
Please contact our agents in company formation in Croatia for extensive details about the tax incentives provided within the legislation related to foreign investments.