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Main Reasons for Doing Business in Croatia

Updated on Thursday 01st July 2021

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Main reasons for doing business in Croatia.jpgIf you are looking for reasons for investments in Croatia, you should know that the country offers plenty of possibilities. Discover in this article some of the solid reasons why Croatia should be on the list of foreign investors looking for safe destinations for business development. We also remind you that our company formation agents in Croatia are at your disposal with full support for company incorporation, registration for taxes and social contributions, licenses and permits, and many more.
 

1. The economic stability, a strong point of Croatia

 
In a constantly changing climate, a foreign investor will primarily seek economic stability before starting a business. Croatia offers such security and is one of the safest countries in the world. An appropriate balance is also offered by the political stability of this country, an important factor in the decision of doing business.
 

2. Young, active and experienced workforce is another asset of Croatia

 
Another reason why Croatia is preferred among foreign entrepreneurs is the experienced workforce. According to figures for 2020, the workforce represents about 62% of the total active population. In addition, the labor costs are affordable for local and foreign businessmen.
 

3. Investment reports reveal the confidence for doing business in Croatia

 
Croatia has experienced many periods of economic development, and experts in the field have highlighted the qualities and attributes for which this country deserves to be on the list of those with high potential for return on investment. Here are some figures and statistics:
 
  • Nearly USD 30 billion was the total FDIs registered by Croatia in 2019.
  • The financial and insurance sector absorbed most of the FDIs for 2019, around 30%
  • The Netherlands represented the main investor of Croatia in the same year, with nearly 21% of the total registered FDIs.
  • The 2020 Doing Business report issued each year by the World Bank ranked Croatia 63rd out of 190 worldwide economies in matters of simplified business and more.
 

4. The geographical position of Croatia, an important business benefit

 
Croatia offers simple and complete access to important markets in Asia, Western and Eastern Europe, on well-known channels: by land, sea, and air. There are no issues or restrictions on access to markets in America or Australia, for example. In addition, the multiple sport exits to the Adriatic Sea do nothing but simplify things for business people interested in import and export activities.
 

5. Profitable business in strong industries

 
Tourism is an extremely important sector for the Croatian economy due to the multiple possibilities and profits generated each year. The pharmaceutical industry, food industry, manufacturing, IT, and the automotive industry are among the most attractive areas in terms of foreign investment. Would you like support for doing business in Croatia? Feel free to get in touch with our specialists.
 

6. The taxation regime is appreciated in Croatia

 
Another reason why Croatia is the ideal business destination is due to the favorable tax regime. Depending on the income, companies can pay taxes between 12% and 40%. The standard VAT in Croatia is 25%, but there are also lower rates, up to 5% for various products and services.
 

7. Incentives for foreign investors are attractive

 
International investors need to benefit from incentives and various aids. The Croatian government offers such support in order for entrepreneurs to be able to develop a business in optimal conditions. Financial incentives or tax breaks are offered for those who create jobs in Croatia.
 

8. Croatia has signed a large number of treaties to prevent tax evasion

 
The importance of the double taxation treaties offers confidence and support for foreign companies in Croatia. This avoids double taxation of profits, but also tax evasion.
 

9. Businesses can be registered very easily

 
The ease with which a company can be set up in Croatia is another strong point offered to foreigners who want to develop their business in this country. Simplifying a company's registration procedures is essential from the start and encourages foreign businessmen to choose this country for various investments and activities.
 

10. Croatia offers excellent standards of living

 
High quality of life is important to international entrepreneurs, so this aspect is carefully measured before making an investment or starting a company. Croatia is one of the countries with an excellent climate, a history, and a culture appreciated all over the world, respected traditions, and  high quality of life. In this context, it is natural for Croatia to be on the list of countries with great potential for business development, and a simple and calm way of living.
 
Interested in doing business in Croatia? You can contact our team of company formation agents in Croatia and solicit complete help and guidance.
 
 
 

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Call us now at +385 95 9981 628 to set up an appointment with our consultants in Zagreb, Croatia. Alternatively you can incorporate your company without traveling to Croatia.

As a Law Firm Ivan Župan client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Croatia.

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The team from CompanyFormationCroatia.com is very qualified and benefits from extensive expertise in this area. I would definitely recommend them to any entrepreneur decided to start his own business here.

Mihai Cuc, Partner of
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www.romanianlawoffice.com

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