CROATIA

 

i. Name of country

CROATIA

ii. Region

Southeastern Europe, bordering the Adriatic Sea, between Bosnia and Herzegovina and Slovenia

iii. Population

4,208,973 (July 2021 est.)

iv. General Introduction

Croatia is a lovely country on the Adriatic Sea's coast. Thousands of islands dot the coastline. Croatia is a new member of the European Union, NATO, and the World Trade Organization, and tourism is a major industry in the country. The currency is the Croatian kuna, and the majority of the locals speak both Croatian and English. Plastics, chemicals, and machinery are the most important industries. Croatia seeks major investments in a variety of economic sectors, including energy, manufacturing, real estate, and automotive. In the European market, Croatia has an appealing investment climate, a low tax regime, and a highly qualified and multilingual workforce.

v. Wifi Speed

As of December 2020, the average download speed of mobile internet connections in Croatia was at approximately 65.79 Megabits per second (Mbps). Fixed internet connections were somewhat slower, at around 46.76 Mbps.

vi. Electrical outlet

For Croatia there are two associated plug types, types C and F. Plug type C is the plug which has two round pins and plug type F is the plug which has two round pins with two earth clips on the side. Croatia operates on a 230V supply voltage and 50Hz.

vii. Per Capita GDP

Real GDP per capita
$26,500 note: data are in 2017 dollars (2020 est.)
$28,800 note: data are in 2017 dollars (2019 est.)
$27,800 note: data are in 2017 dollars (2018 est.)

note: data are in 2010 dollars

viii. Climate

Mediterranean and continental; continental climate predominant with hot summers and cold winters; mild winters, dry summers along coast

ix. Citizenship-by-Investment

Citizenship in Croatia can be obtained in exchange for a specific type of investment in the country. The program's goal is to bring in as many foreign investors as possible. All aspects of Croatia citizenship by investment can be explained by one of our Croatia company formation specialists. Furthermore, if you want to start a business in this country, please send us your inquiries and we will get back to you as soon as possible.

Investment

The main requirement for entering the citizenship program is an investment of approximately EUR 100,000 in Croatia. This means that foreigners can start new businesses or invest in existing ones, thereby creating jobs.

How do I buy citizenship in Croatia in 2021?

Registering a company or purchasing a property in Croatia are two important and profitable options to obtain citizenship in this country. The immigration policy has been simplified in recent years in Croatia, allowing foreigners to easily set up their businesses and make different investments to gain citizenship.

Here is information to consider when applying for Croatia citizenship by investment in 2021:

- The real estate properties in Croatia are at affordable costs compared to other European countries.
- Buying accommodation in Croatia comes with a temporary residence permit which changes into a permanent one.
- A high qualified lawyer in Croatia is at your disposal when buying a property for buying citizenship in this country.
- You can simply register a company in Croatia and gain citizenship as a non-resident in this country. We can handle the formalities with the authorities in charge.

Processing Time

2months

Key Benefits

- A vibrant economy offering significant infrastructure, transportation, and energy projects being developed in the nation.
- An expat-friendly tax regime with 100% tax exemption on certain foreign incomes.
- Convenient travel and stay in all EU nations along with visa-free access to developed American and Asian nations.
- Excellent educational facilities with free and compulsory education for children aged between seven and 15 years.
- Balanced development with access to all modern facilities along with natural beauty including the long coastline.

Requirements

- Valid proof of identity
- Copy of valid travel documents
- Evidence of adequate financial resources for sustenance of the applicant and his/her family in Croatia.
- Proof of adequate health insurance.
- Proof of educational background and qualifications
- Proof of family relationship, marriage, or partnership with spouse or partner.
- Proof that relationship with dependents
- Non EEA nationals seeking temporary work and stay permit outside the annual quota must submit the following additional documents
- Proof of ownership of at least 51% in a company carrying out strategic investment projects in Croatia.
- Proof of registration of the above-mentioned company or its branch in Croatia
- Medical certificate issued by a doctor recognized by the Belgian Embassy or Consulate;

Procedures and Time Frame

The procedure for becoming a permanent resident in Croatia involves two steps:

- Obtaining a temporary stay permit and a stay and work permit outside the annual quota,
- Obtaining permanent residence permit after five years of legal and uninterrupted residence in Croatia.
- Temporary Stay Permit
- A temporary stay permit can be obtained by submitting the following documents:
- A valid travel document.
- Proof of sufficient funds to support self and family during the stay in Croatia.
- Proof of having adequate health insurance.
- Purpose of the temporary stay i.e. proof of the stay and work permit outside the annual quota. This permit can be obtained by submitting the following documents:

- Proof of educational qualifications.
- Proof of ownership of 51% stake in a company that is executing strategic investment projects in Croatia and executes activities and projects involving expert and technical assistance from other countries or international organizations.
- Proof of good character of the applicant indicating that his or her presence is not a threat to safety, national security, or public health.
- Fulfilling these conditions will result in the issue of temporary permit with a validity of one year. The permit must be repeatedly renewed for a period of five years.
- Permanent Stay Permit
- The non-EEA national can seek permanent residence after five years of uninterrupted residence in the country. The applicant should not be absent from the country for more than six months in a single trip and for not more than ten months over the five year period. The applicant must have a valid temporary stay permit when applying for permanent residence.

xi. Natural Resources

oil, some coal, bauxite, low-grade iron ore, calcium, gypsum, natural asphalt, silica, mica, clays, salt, hydropower

xii. Ethnic Groups

Croat 90.4%, Serb 4.4%, other 4.4% (including Bosniak, Hungarian, Slovene, Czech, and Romani), unspecified 0.8% (2011 est.)

xiii. Languages

Croatian (official) 95.6%, Serbian 1.2%, other 3% (including Hungarian, Czech, Slovak, and Albanian), unspecified 0.2% (2011 est.)

xiv. Religion

Roman Catholic 86.3%, Orthodox 4.4%, Muslim 1.5%, other 1.5%, unspecified 2.5%, not religious or atheist 3.8% (2011 est.)

xv. Median Age

total: 43.9 years
male: 42 years
female: 45.9 years (2020 est.)

xvi. Urbanization

urban population: 57.9% of total population (2021)
rate of urbanization: 0.05% annual rate of change (2020-25 est.)

xvii. Physician density

3 physicians/1,000 population (2016)

xviii. Government type

parliamentary republic

xix. Unemployment Rate

8.07% (2019 est.)
9.86% (2018 est.)

x. Taxes

Headline Personal Income Tax Rate (highest marginal tax rate)
- 40%

The Personal Income Tax Act differentiates between a "resident taxpayer" and a "non-resident taxpayer".
A resident taxpayer is a natural person who has a permanent or usual residence in Croatia. The taxable base for a resident taxpayer is the total income earned in one calendar year in Croatia and abroad reduced by personal deductions.
A non-resident taxpayer is a natural person who has neither permanent nor usual residence in Croatia, but who earns an income in Croatia that is subject to personal income tax. The taxable base for a non-resident taxpayer is the income earned in one calendar year in Croatia reduced by the personal deduction.

Headline Corporate Income Tax Rate (excluding dividend taxes)
- 18% (for profits over 3 million kn)
- 12% (for profits not over 3 million kn)

Corporate Income Tax (Profit Tax)
- 10% for revenues up to HRK 7,500,000.00 generated in the tax period or
- 18% for the revenues generated in the tax period are equal to or greater than HRK 7,500,000.01.

Income tax rate on withholding tax:
- 15% in general
- 10% for dividends and profit shares and for performances by foreign performers
- 20% on all services and all types of fees taxable when paid to persons who have their registered office, headquarters or supervision in the countries listed on the EU list of non-cooperative jurisdictions for tax purposes and to which the Republic of Croatia does not apply the double taxation avoidance contract.

Income Tax and Surtax

Income Tax rate is:
- 20% for income to 360,000 HRK / 47,745.36 EUR per year (up to 30,000 HRK / 3,978.78 EUR per month)
- 30% for income above 360,000 HRK / 47,745.36 EUR per year (above 30,000 HRK / 3,978.78 EUR per month)

Surtax Rates Range:
- Municipalities up to 10%
- Cities below 30,000 inhabitants up to 12%
- Cities over 30,000 inhabitants up to 15%
- City of Zagreb up to 18%

Value Added Tax (VAT)- 25% is general rate

- Real estate Transfer Tax rate is 3% and is paid by the buyer.
- The digital nomad work visa comes with tax exemptions (foreign digital nomads are not subject to pay income tax in Croatia) and a validity of up to 1 year.

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