Law on investment promotion
The Law on the Promotion of Investments in the Republic of Croatia, which has been in force since June 4, 2022, regulates the granting of state aid with the aim of encouraging investments. This law is aligned with the acquis of the European Union and ensures the implementation of Commission Regulation (EU) no. 651/2014.
Objectives and scope
The law focuses on encouraging investment in the following sectors:
- Production and processing activities
- Developmental and innovative activities
- Business support activities
- Services with high added value
Subsidies are granted to entrepreneurs who are registered in Croatia and who invest in fixed assets with a minimum investment amount.
Criteria for granting grants
In order to receive grants, entrepreneurs must meet certain conditions:
Minimal investment
EUR 150,000 with the creation of at least 5 new jobs
EUR 50,000 with the creation of at least 3 new jobs for micro-enterprises
EUR 3 million with the creation of 15 new jobs for the activation of inactive assets
Keeping jobs:
Large companies must retain new jobs for 5 years, while small and medium-sized companies must retain new jobs for 3 years.
Types of grants
The Investment Promotion Act offers various types of support, including:
Tax benefits:
Reduction of profit tax depending on the amount of investment and the number of new employees.
Grants for education and training:
Financing of employee education within investment projects.
Keeping jobs:
Large companies must retain new jobs for 5 years, while small and medium-sized companies must retain new jobs for 3 years.
Incentives for modernization of business processes:
Support for automation and digitization.
Application procedure
Entrepreneurs must submit an application for the use of subsidies before starting the planned investment. The application is submitted to the Ministry of Economy and Sustainable Development, and must contain all relevant information about the planned project. This legislation aims to improve the investment environment in Croatia, attract foreign and domestic investments and stimulate economic growth through the creation of new jobs and increased productivity.
Encouraging investment in tourism in Croatia
In Croatia, the promotion of investment in tourism is regulated by the Law on Tourism and the Decree on Promotion of Investment, with the aim of improving the tourism sector through various measures and support. These measures aim to ensure the sustainable development of tourism, improve competitiveness and innovation, and reduce negative effects on the environment.
Investment promotion objectives
The main objectives of encouraging investment in tourism include:
Balanced development
Ensure year-round and regionally balanced development of tourism, including special forms of tourism and improvement of international connectivity.
Sustainable development
Promote socially and environmentally sustainable tourism, reducing negative impacts on the environment and climate.
Competitiveness and innovation
Develop competitive and innovative tourism, through strengthening human potential and digital transformation.
Resistance to external influences
Increase the resilience of tourism activities to external challenges, such as economic crises or natural disasters.
Types of grants and awarding instruments
Subsidies are granted to legal and natural persons who perform activities in tourism, such as accommodation, food preparation, travel agencies and sports activities. Key types of grants include:
Reduced rate of profit tax
Incentives for investments in projects that contribute to the sustainable development of tourism.
Financial support
The maximum annual amount of state support can be up to EUR 7,000,000, and beneficiaries must provide a minimum of 25% of eligible investment costs from their own sources or external financing.
Support for environmental protection
It includes support for the procurement of clean, zero-emission vessels, thus promoting environmentally friendly tourism.
Trends and the future
Within the framework of the National Sustainable Tourism Development Plan until 2027. emphasizes the importance of involving local communities in decision-making processes, which is crucial for sustainability and quality of life. It is also planned to develop a data collection system for better management of tourism and improvement of security systems in order to preserve Croatia's position as a safe tourist destination.
Considering all of the above, encouraging investment in tourism in Croatia is an important step towards strengthening the sector, ensuring sustainable development and increasing competitiveness on the international market.
