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Incentives

1. Tax incentives for micro entrepreneurs

Minimum investment (€)
Number of newly employed
Time for creating new jobs
Corporate income tax rate reduction
Duration of incentives
50,000 €
3
within 3 year from the beginning of investment
50%
up to 5 years

2. Tax Incentives for small, medium and large entrepreneurs

Min. investment (€ milion)
Number of newly employed
Corporate income tax reduction
Duration of incentives
>0,05 - 1 for ICT systems and software development centers
10
50%
up to 10 years
0.15 to 1
5
50%
up to 10 years
1 – 3
10
75%
up to 10 years
More than 3
15
100%
up to 10 years

3. Incentives for eligible costs of creating new jobs related to investment project

County unemployment rate
*Mandatory period for retaining new jobs
Non-refundable financial incentive for the costs of creating new jobs
Max. incentive amount
Up to 10%
3/5 years
up to 10% of eligible costs
up to €3,000
10% - 20%
3/5 years
up to 20% of eligible costs
up to €6,000
More than 20%
3/5 years
up to 30% of eligible costs
up to €9,000
County unemployment rate
Mandatory period for retaining new jobs
Non-refundable financial incentive for the costs of creating new jobs
Max. incentive amount
Increase for development and innovation activities
Increase for business support activities and high value added services
Up to 10%
5 years
10% eligible costs
€3,000
+50% (max. €1,500)
+25% (max. €750)
10% - 20%
5 years
20% eligible costs
€6,000
+50% (max. €3,000)
+25% (max. €1,500)
more than 20%
5 years
30% eligible costs
€9,000
+50% (max. €4,500)
+25% (max. €2,250)
County unemployment rate
Cash grant for the costs of the newly built object*
Cash grant for acquisition of new production equipment
Max. amount of incentive for new equipment
Min. share of investment in new equipment/ high technology equipment share
10% - 20%
10% of eligible costs
10% of eligible costs
€0.5 milion
40% / 50%
More than 20%
20% of eligible costs
20% of eligible costs
€1 milion
40% / 50%
*Newly built objects - production plant, industrial facility

7. Incentive measures for labor intensive investment projects

Number of new jobs
Increase of support for creating new jobs
100 and more
+25%
300 and more
+50%
500 and more
+100%

8. Incentive measures for investment projects undertaking economic activation of inactive state property of the Republic of Croatia

Min. investment
Number of newly employed
Time for creating new jobs
Incentive
Duration of incentives
€3 milion
15
up to 3 years
lease of inactive state property of the Republic of Croatia without compensation
up to 10 years
Min. investment
Differences in levels of productivity per employee after 3 years
,
Corporate income tax rate shall be reduced by
Duration of incentives
€0,5-1 million
>10% in relation to the level of productivity per employee in the one year period prior to the application of the investment project
50 %
up to 10 years
€1-3 million
>10% in relation to the level of productivity per employee in the one year period prior to the application of the investment project
75 %
up to 10 years
>€3 million
>10% in relation to the level of productivity per employee in the one year period prior to the application of the investment project
100 %
up to 10 years
Taxes
TAX
TAXPAYER
TAX BASE
TAX RATE
Value Added Tax
Legal and natural person delivering goods or performing services
Fee for provided goods or services
25%, 13%, 5%
Personal Income Tax
Natural person realizing taxable income
Total income realized in Croatia and abroad (for foreign taxpayers income realized in Croatia) reduced by personal deduction for residents/non-residents
30% and 20%
Corporate Income Tax (Profit Tax)
A company or some other legal entity pursuing independent and permanent business activities in order to generate profit, business unit of a foreign entrepreneur (non-resident)
Profit (difference between revenue and expenditure)
10% and 18%
Real Estate Transfer Tax
Buyer of the real estate
Market value of the real estate at the moment of acquisition
3%
Surtax on Personal Income Tax*
Income tax taxpayers
Income tax
0-18% (Zagreb 18%)
Education

Secondary school graduates

Technical and related secondary schools structure

(Enrolled students)

Industry and crafts secondary schools structure

(Enrolled students)

Graduates from professional and university study

Workforce

Registered unemployment by educational background, January 2021

Source: Croatian Employment Service

Unemployment by activities (of previous employment), January 2021

Source: Croatian Employment Service


Unemployment by groups of occupation, January 2021

Source: Croatian Employment Service

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