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Types of Investment Funds in Croatia

Updated on Tuesday 25th June 2019

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Types-of-Investment-Funds-in-Croatia.jpgLong-term investments are sustained in Croatia with all sorts of governmental programmes meant to support and grow the business environment in the country as much as possible. In this article, we present the most used and appreciated types of investment funds a foreign entrepreneur can choose in Croatia. All the support in terms of registration can be offered by our company formation agents in Croatia.
 

Open-ended investment funds in Croatia

 
Hedge funds, mutual funds, exchange-traded funds are the type of open-ended funds which are controlled by the Open-Ended Investment Funds with Public Offering and Alternative Investment Funds Act, under the management of Hanfa, the Croatian Financial Services Supervisory Agency. Here is information about how open-ended investment funds work in Croatia:
 
  1. Open-ended funds are the type of investments that issue shares every time there are requests on the market.
  2. The net asset value (NAV) is the price for open-ended shares.
  3. Open-ended funds have diversified portfolios and are created with the money of pooling investors.
  4. In the case of transferred shares, the open-ended fund can sell some investments and pay the selling investors involved.
 
Making investments in Croatia might be an ideal way to enter the market as an international entrepreneur. If you are interested in company registration in Croatia and if you would like to know more about the investment options and regulations, you may talk to our company formation representatives in Croatia.
 

Can I establish AIFs in Croatia?

 
Yes, you can decide on alternative investment funds or AIFs as they are known, the type of investments supervised by the Alternative Investment Funds Act. AIFs might include hedge funds, commodities, private equity, real estate investment trusts and venture capital, all these overseen by Hanfa in Croatia, and under the rules of the Alternative Investment Funds Act. Moreover, precious metals might represent alternative funds, however, there are no dividend payments for investors in this case.
 

UCITS in Croatia

 
UCITS (Undertaking for Collective Investment in Transferable Securities) are the type of investment funds available in Croatia which respect the EU directives in matters of structure and registration. The principles for UCITS are simple and connected to the risk-spreading, raising capital through public offering of units and investing collective assets of investors from abroad. If the investors request so, the units of UCITS can be redeemed at any time. Both AIF and UCITS are controlled by Hanfa and the applicable set of laws.
 

Close-ended investment funds – what you need to know

 
Close-ended investment funds can be launched in Croatia through IPO or the initial public offering with a fixed capital and can be sold on the open market. Such funds can be traded on the stock exchange, having a professional manager in charge of the portfolio. It is important to know that once the IPO is made, the parent company of the fund cannot issue extra shares, making close-ended funds quite unique. Close-ended investment funds are also known as closed-end mutual funds or close-end investment funds. These are available on the Croatian market due to the low level of risks and preferred by international investors willing to develop their portfolio in other directions too. Would you like to open an investment fund in Croatia? You can get in touch with our team of company formation consultants in Croatia and solicit assistance and information in this matter. Also, our team can offer support for persons wanting to register a company in Croatia.
 

Why make investments in Croatia

 
The reasons for making investments in Croatia are varied and sustained by the country’s appealing business climate for both domestic and international entrepreneurs. The main benefits relate in the first place with the permissive legislation on foreign investments and with the set of measures meant to sustain the business environment as much as possible. Foreign investors are welcomed in Croatia and invited to take advantage from the direct support for creating new jobs in the country, financial support for capital disbursements, an experienced multilingual labor force, competitive operational costs and an appealing tax structure with no customs taxes when dealing and trading with European countries. Here are a few statistics and numbers to consider when planning investments in Croatia:
 
 
  • Q3 of 2018 registered FDIs of approximately EUR 57 million.
  • Croatia ranks 84th in terms of GDP among countries worldwide.
  • There is no corporate tax for 10 years for foreign companies in Croatia.
  • The inflation rate in Croatia is set at 0.90% this year.
 
 
If you would like to know more about how to open a company in Croatia or about the available investment funds in this country, you can contact our team of company formation specialists in Croatia.
 

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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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