The Government of the Republic of Croatia, by adopting the Law on Investment Promotion and Improving the Investment Environment (OG nr 111/12, 28/13), increases its competitiveness in the investment market.
The Croatian legal framework governing foreign corporate investment is designed in a way that makes no difference between domestic and foreign investors. All possibilities in relations between domestic investors are also open to foreigners who invest capital in Croatia, provided that the principle of reciprocity is fulfilled. Foreign investors also enjoy additional guarantees that are not given to domestic investors. The Croatian Constitution provides that no law or other legal document will reduce the rights granted to a foreign investor at the time of investment in Croatia. It also guarantees the free repatriation of profits or capital after fulfilling all legal obligations.
Before each investment, a favorable location should be chosen considering the availability of a skilled workforce and a favorable business environment.
First of all, Croatia is an ideal market for corporate investments in educational purposes in order to solve the present problem as known as “brain drains”, where all education should be improved in a way that becomes internationally oriented as it is with developed countries in the world – for example, by opening schools for foreign languages.
Also, Croatia is an area suitable for investing in medical projects, especially in areas at sea, due to the abundance of healing seawater and our climate, especially investment in rehabilitation projects.
As for buying and building real estate, the advantage is certainly given to the construction of properties along the seafront where there is a shortage of luxury houses and holiday villas, while in the case of construction. for example hotels and other residences of a larger accommodation and development of the tourist business, it is proposed to lease what proved to be the most profitable and safest way to invest.
In addition to the above mentioned areas, Croatia, for its natural resources, unique geographical position, culture and availability of the higher education workforce, is also suitable for investing in: sports, winter, religious, rural tourism, fishing, maintenance of various fairs, solar and wind energy, etc.
Statistical indicators of sectors looking for investors (Croatian Bureau of Statistics data, 2019):
- Tourism: 23.9% GVA (HNB, 2019)
- ICT: ICT share in GVA is 4.9 % (HNB, 2019)
- Automotive industry: The share of the automotive industry in total exports is 9.8% (CBS, 2019)
- Food industry: 10% of exports (CBS, 2019)
- Pharmaceutical industry: The share of the pharmaceutical industry in total exports is 8% (CBS, 2019)
- Logistics: 9,262 companies operate in the transport and storage sector (CBS, 2018)
- Manufacture of machinery and equipment: 6.7% is industry share in total exports (CBS, I-IX 2019)
- Textile industry: 8.5% share of total exports (CBS, I-IX 2019)
- Creative and cultural industries: 3,589 enterprises (4.5 % in total economy), Eurostat 2019
By Anja Juršetić, mag.iur.