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Croatian Government adopted the new Investment Promotion and Development of Investment Climate Act (the “Act”) (OG 111/2012, 28/2013). The incentive measures in the new Act are aimed at strengthening production activities and the use of new technologies, supporting research & development activities and stimulating employment.

Incentive measures defined by the Act on Investment Promotion refer to investment projects and strengthening of competitive capacities in:

- Incentives for the manufacturing-processing activities
- Incentives for the development-innovation activities
- Incentives for strategic business support activities
- Incentives for the high added value services
- Tax incentives
- Customs incentives
- Employment incentives
- Incentives for education and training
- Incentives for the capital expenses of investment projects
- Incentives for labour intensive investment projects

Minimum investment required in order to become a beneficiary of incentive measures:

150,000 Euro with the condition of opening 5 new workplaces (for SMEs and large companies)

50,000 Euro for micro entrepreneurs with the condition of opening 3 new workplaces*

Investments of minimum 13,000,000 Euro with the condition of opening 10 high skilled (university degree level) new workplaces.

Classification of enterprises is done in accordance with the GBER (EUR)
Enterprise category: Large             Medium          Small            Micro
Number of employees: ≥ 250         < 250              < 50              < 10
Annual turnover >50 mln               ≤ 50 mln       ≤ 10 mln        ≤ 2 mln
Annual balance sheet >43 mln      ≤ 43 mln       ≤ 10 mln        ≤ 2 mln

In order to be granted the status of a beneficiary of incentive measures a microenterprise, small or medium enterprise or a natural person liable to income tax, intending to use support for initial investment should apply for incentive measures to the Ministry of Entrepreneurship and Crafts while a large enterprise should apply for incentive measures to the Ministry of Economy, before the beginning of investment (start of the investment – the start of construction works or the first assumed obligation in the sense of the equipment work order, excluding the preparatory feasibility studies).

Jurisdiction of Ministries:
Micro, small and medium enterprises:

Ministry of Entrepreneurship and Crafts
(Directorate for International Collaboration, Investments and Cooperation)
Address: Grada Vukovara 78, 10000 Zagreb, Croatia
Telephone: +385 1 6106 111     www.minpo.hr

Large enterprises:
Ministry of Economy
(Directorate for Industry, Investments and EU Programmes and Projects)
Address: Grada Vukovara 78, 10 000 Zagreb, Croatia
Telephone: +385 1  6106 111  www.mingo.hr

When classifying enterprises one should also consider affiliated enterprises

The amount of aid shall be calculated as a percentage of investment value, which is determined on the basis of eligible investment cost. Eligible investment costs are:
tangible (value of  land/buildings and plant/machinery) and intangible assets (patent rights, licences, know-how) or gross wage calculated over a period of two years

The minimum period for maintaining the investment and newly created jobs linked to an investment is five years for large enterprises, and three years for small and medium-sized enterprises, but no less than the period of use of the incentive measures.

Croatia the best country for your business !! The unusual climate for your business !!
You have to try to do your business here !!!