Starting a Business in Croatia: Entrepreneur’s Guide

Published on November 4, 2025 and written by Cyril Jarnias

Relocating to Croatia to start your own business is an enticing and promising adventure, but it requires thorough preparation and a well-thought-out strategy. Known for its picturesque landscapes and rich cultural heritage, this country offers an attractive living environment and an expanding market for investors.

In this article, we will explore the essential steps to launch your business in Croatia, from administrative procedures to discovering business opportunities specific to the region. By understanding the challenges and advantages of establishing yourself in this country, you will be better equipped to turn your entrepreneurial dream into tangible success.

Understanding Legal Structures in Croatia for Entrepreneurs

Structure Type	Main Characteristics	Advantages	Disadvantages	Legal and Tax Requirements	Creation Process
Limited Liability Company (d.o.o.)	– Minimum capital: 20,000 HRK (~€2,700) – 1 or more shareholders – Limited liability for partners – Most common form for SMEs	– Limited liability – Flexible structure – Simple procedure	– Capital to be released – Moderate formality – Mandatory accounting	– Articles of association drafted and signed before a notary – Local bank account – Registration in the commercial register – VAT number – Local accountant	– Drafting articles of association – Capital deposit – Registration in the commercial register – Opening a bank account – Tax registration
Joint Stock Company (d.d.)	– Minimum capital: 200,000 HRK (~€27,000) – Possible stock exchange listing – Structure suited for large companies	– Access to equity financing – Limited liability	– Cumbersome procedure – High capital – Transparency obligations	– Notarized articles of association – Mandatory registered office – Board of directors – Annual publication and audit of accounts	– Drafting articles of association – Capital deposit – Registration in the commercial register – Tax and administrative formalities
Sole Proprietorship (obrt)	– No minimum capital – Sole ownership – Unlimited liability	– Quick creation – Low costs – Simple management	– Liability on personal assets – Limited growth capacity	– Administrative registration – VAT registration if necessary – Simplified accounting obligations	– Registration with local administration – Opening a bank account – Annual tax declaration
Partnerships (j.t.d. / k.d.)	– General (j.t.d.): at least 2 partners, unlimited liability – Limited (k.d.): general partners (unlimited) and limited partners (liability limited to contribution)	– Easy creation – No capital required – Flexible structure	– Unlimited liability for some partners – Personal financial risks	– Partnership agreement – Registration in the commercial register – Tax registration	– Drafting the agreement – Registration with authorities – Tax and social declarations

Accounting Regulations and Financial Statement Publication

D.o.o. and d.d. must maintain full accounting, prepare annual financial statements, submit them to the commercial register, and, for large structures, have accounts certified by an auditor.

Sole proprietorships and small partnerships benefit from simplified accounting requirements but must still maintain regular accounting and declare their income.

Specifics for Foreign Entrepreneurs

Foreigners can create a company in Croatia without nationality restrictions, provided they have no tax or judicial disputes in Croatia.

It is mandatory to have a local registered office, a Croatian bank account, and a local accountant.

Creation can be done through a legal representative or by power of attorney.

Obtaining a visa or residence permit is required for expatriates wishing to settle in Croatia.

Administrative Procedures for Expatriates and Foreign Entrepreneurs

• Preparation and legalization of identity documents (passport, proof of address)
• Drafting and signing articles of association before a notary
• Opening a local bank account for capital deposit
• Registration in the Croatian commercial register
• Registration for VAT and social security if necessary
• Application for residence/work permit for non-residents wishing to manage the company on-site

Useful Local Resources

• Croatian Chambers of Commerce: administrative support, legal advice, networking, sector information.
• Local development agencies: support for establishment and partner search.
• Accountants and specialized lawyers: handling formalities and tax obligations.

Essential Administrative Steps to Create Your Business in Croatia

Legal Structure	Minimum Capital	Liability	Main Characteristics
Limited Liability Company (d.o.o.)	€2,500 to €20,000	Limited to capital	Most common structure, suited for small and medium enterprises, management flexibility, customizable articles
Joint Stock Company (d.d.)	€27,000	Limited to capital	Structure suited for large companies, more complex formalities
Sole Proprietorship	None	Unlimited	Light formalities, personal liability, non-transferable
General Partnership (j.t.d.) / Limited Partnership (k.d.)	None	Unlimited for at least one partner	Joint or shared liability, rarely used by expatriates

Essential Administrative Steps to Create a Business in Croatia:

1. Choice of Legal Structure
   • Analyze the model suited to your activity (d.o.o. for most SMEs, other forms for specific cases).
2. Preparation of Required Documents and Criteria
   • Company articles of association drafted and signed before a notary.
   • Proof of identity (passport copy).
   • Certificate of non-conviction for directors.
   • Signature specimen.
   • Proof of address for the registered office in Croatia.
   • Deposit of minimum capital into a provisional bank account.
3. Company Registration
   • Submission of file to the commercial court (commercial register).
   • Obtaining registration certificate and official company stamp.
   • Average time: 1 week for registration, 2 to 3 weeks for the entire process.
4. Obtaining Tax Identification Number (OIB)
   • Procedures with local tax administration.
   • Mandatory for any economic activity.
   • VAT registration if turnover exceeds legal threshold (approx. €40,000/year) or optionally.
5. Opening a Professional Bank Account
   • Presentation of registration certificate, articles of association, and OIB number.
   • Necessary to deposit definitive share capital and manage daily operations.
6. Registration with Social Agencies
   • Mandatory registration of employees with the national social insurance system (health, pension, unemployment).
   • Declaration to the Croatian social security agency within 8 days of hiring.
7. Additional Formalities
   • Creation of a company stamp (mandatory in Croatia).
   • Appointment of a local accountant.

Indicative Timelines for Each Step:

Step	Average Time
Preparation of articles and documents	3 to 5 days
Notary visit	1 day
Registration with commercial court	5 to 7 days
Obtaining OIB and VAT	2 to 5 days
Opening bank account	1 to 3 days
Employee registration	1 to 2 days

Practical Tips to Facilitate the Process:

• Prepare all documents translated into Croatian by a sworn translator.
• Use an experienced notary and local accountant to avoid administrative errors.
• Prefer a registered office in a large city to speed up certain processes.

Assistance and Support for Expatriates:

• French-Croatian or international chambers of commerce.
• Specialized services from bilingual law firms and accounting firms.
• Business creation support platforms for foreigners.

Regional and Sectoral Variations:

• Some local administrations may require additional documents or variable timelines.
• Regulated sectors (finance, health, education) require specific licenses.

Common Administrative Costs:

Item	Estimated Cost
Notary	€500 to €1,000
Share capital (d.o.o.)	€2,500 to €20,000
Registration fees	€100 to €500
Company stamp	€20 to €50
Sworn translations	€100 to €300
Accountant fees	€100 to €300/month

Budget Tips:

• Opt for the legal minimum capital for a d.o.o. if the activity does not require significant initial investments.
• Share some costs (translations, accounting) with other entrepreneurs.
• Compare bank offers to limit account management fees.

Local Specifics to Know:

• Croatian business culture values formality and respect for official procedures.
• Trust relationships with local partners, notaries, and accountants greatly facilitate procedures.
• Use of the company stamp remains a common administrative practice, even in the digital age.

For expatriates, surrounding yourself with competent and well-informed local professionals is the key to a smooth business creation that meets Croatian cultural and administrative expectations.

Tax Considerations and Funding for Expatriate Entrepreneurs in Croatia

Essential Tax Aspects for Expatriate Entrepreneurs in Croatia

Tax Type	Standard Rate	Reduced Rate (small businesses)
Corporate Tax	18%	10-12% depending on annual turnover
Value Added Tax	25%	Possible reductions for targeted sectors
Income Tax	20-36%	Progressive, based on brackets

• Non-resident companies are taxed only on Croatian-source income.
• Capital gains are subject to the standard corporate tax rate.
• Possible deductions: doubtful debts, depreciation, R&D expenses, profit reinvestment.

Tax Obligations Specific to Non-Residents

• Obligation to declare Croatian-source income.
• Foreign companies must comply with the same tax rates as local businesses.
• Non-residents are taxed only on income generated in Croatia.

Double Taxation Agreements

• Croatia has signed double taxation conventions with many European and international countries.
• These agreements avoid double taxation on cross-border income and provide tax credits or exemptions depending on situations.
• Entrepreneurs must verify the applicable convention between Croatia and their country of tax residence.

Funding Options Available for Expatriate Entrepreneurs

Local Funding Sources:

• Croatian banks offering classic professional loans and financing lines for SMEs.
• Government grant programs for major investments, job creation, and innovative projects.
• Local crowdfunding and business angels.

International Funding Sources:

• European funds (ERDF, Horizon Europe) accessible for innovative or high-value projects.
• Bank loans via international subsidiaries or foreign banks present in Croatia.
• Partnerships with foreign investors.

Collaborations with Local Banks:

• Opening professional accounts, access to adapted payment solutions.
• Support for expatriates by some specialized institutions.
• Possibility to negotiate specific conditions for foreign investments.

Legal Considerations Related to Foreign Direct Investment

• Foreign investments are generally free in Croatia, subject to compliance with local legislation.
• Certain strategic activities or specific sectors may require special authorizations.
• Foreign investors often benefit from advantageous tax regimes, such as exemptions or corporate tax reductions for new projects creating jobs or investing in infrastructure.
• Compliance with local accounting and tax standards (IFRS, reporting obligations).

Common Challenges for Expatriate Entrepreneurs Regarding Taxation and Funding in Croatia

• Complexity of administrative and tax procedures, especially for non-residents.
• Language barrier and cultural differences in banking and administrative relationships.
• Limited access to certain funding without local guarantees or Croatian credit history.
• Risk of double taxation in the absence of an appropriate convention or poor management of international declarations.
• Compliance with declaration obligations and tax deadlines.

Practical Tips to Navigate These Obstacles

• Consult a tax advisor specialized in international and Croatian taxation before any establishment or investment.
• Systematically verify the applicable double taxation convention to optimize tax burden.
• Prepare a complete file for funding applications, including business plan, guarantees, and investment proofs.
• Inform yourself about available government grants and incentives and their eligibility criteria.
• Maintain regular monitoring of Croatian tax legislation and regulatory changes.

Key Takeaway: Expatriate entrepreneurs benefit from a competitive tax environment in Croatia but must anticipate specific obligations related to their status and optimize their funding choices by relying on local and international expertise.

Cultural Tips and Support Resources to Succeed as an Expatriate Entrepreneur

Cultural Specifics in Business

• Interpersonal Relationships: In Croatia, building strong personal relationships is essential for business success. It is common for trust to develop during informal meetings, such as coffee breaks or lunches, where personal topics are discussed. Personal connections often form the basis of long-term professional collaborations.
• Punctuality and Communication: Punctuality is expected for professional appointments, though some flexibility is tolerated in less formal contexts. Communication style is direct but courteous. It is recommended to use professional titles and dress neatly. Active listening and respect for hierarchy are valued.
• Negotiation and Business Practices:
  • Negotiations proceed at a steady pace. It is advisable not to rush discussions and to prioritize transparency.
  • Respect for listed prices is standard, price negotiation being less common than in other countries.
  • Conflict management favors calm discussion and discretion, public confrontations being poorly perceived.
• Hospitality and Gifts: Accepting an invitation for coffee or a meal is an excellent way to strengthen relationships. Small symbolic gifts are appreciated, but avoid overly expensive presents.

Resources Available for Expatriate Entrepreneurs

Resource Type	Description	Examples or Key Roles
Chambers of Commerce	Facilitate access to networks, information, and economic events	AmCham Croatia, CCFCI, German, Italian, Austrian Chambers, Croatian National Chamber
Professional Networks	Allow meeting partners, investors, and mentors	LinkedIn, Facebook, business clubs, sector events
Incubators & Accelerators	Offer support, mentorship, and workspaces	ZIP Zagreb, Impact Hub Zagreb, Algebra LAB
Mentorship Programs	Personalized help from experienced professionals	Initiatives from chambers of commerce, local university programs

Success Stories of Expatriate Entrepreneurs in Croatia

• A French entrepreneur in tech shared that patience and active integration into the local community, via events and associations, were decisive for his success. He emphasizes the importance of understanding cultural expectations and maintaining regular follow-up with Croatian partners.
• A German entrepreneur in tourism succeeded by adapting her offerings to local preferences and participating in fairs and festivals to enhance visibility and network.

Shared Lessons:

• Invest in human relationships, beyond the professional framework.
• Adapt offerings and communications to local expectations, particularly regarding prices and payment methods.
• Maintain regular on-site presence to build trust and seize new opportunities.

Practical Tips for Adaptation and Success

• Make a Good First Impression: neat presentation, use of titles, punctuality.
• Actively Participate in Local Economic Life: fairs, conferences, sector events.
• Multiply Contact Points: personalized messages, invitations to informal meetings, regular follow-up.
• Use Local Digital Tools: LinkedIn for B2B, Facebook for local networking.
• Rely on Chambers of Commerce and Business Clubs to access resources, key contacts, and mentorship opportunities.
• Stay Flexible: adapt payment methods, deadlines, and offerings to the reality of the Croatian market.
• Integrate Culturally: learn a few Croatian words, show interest in the country’s culture and history to build connections.

To succeed in Croatia, prioritize building trust relationships, understanding local cultural expectations, and leveraging existing networks and resources.