Free Trade Zones – Act on Free Trade Zones (OG 44/96, 78/99, 127/00, 92/05, 85/08 and 148/13)
Free zones in the land area of the Republic of Croatia are established on the basis of a concession granted by the Government of the Republic of Croatia pursuant to the Act on Free Trade Zones, or by special laws and other legal acts (Law on Reconstruction and Development of the City of Vukovar, Official Gazette 44/01, 90/05, 80 / 08, 38/09 and 148/13 and the Decision on General Conditions and Standards for Concession for the Establishment of Free Zones in the City of Vukovar, Official Gazette 138/02 for the Podunavska Free Zone of Vukovar), while free zones in the port areas are based on the consent of the Government of the Republic of Croatia.
The free zone is part of the territory of the Republic of Croatia, which is specially enclosed and marked and in which economic activities are carried out under special conditions and may consist of several separate parts.
Goods can be entered into the free zone and can be used to manufacture, refine and store goods, for wholesale trade, strategic business support activities, the establishment of technological development and innovation centers, and the provision of non-banking services. Retail trade is not allowed in free zones.
The free zone is managed by the founder as defined by the founding act issued by the concessionaire. Free zone users can, along with the founder of the zone, be domestic and foreign legal and natural persons. The users of the free zone will conclude a contract with the founder of a zone based on which they can carry out economic activities in the zone. For a part of their business in a free zone, users of the free zone are required to keep separate bookkeeping.
The value-added tax for goods placed in the zone is paid only when the goods leave the free zone and when its final destination is the European Union market, including the market of the Republic of Croatia. Where the goods from the free zone are destined to a third country market, the goods are exempt from paying value-added tax.
In 2017, the following free zones were operating in the Republic of Croatia:
1. Krapina-Zagorje free zone
2. Podunavska Free Zone Vukovar
3. Free zone Kukuljanovo
4. Free zone Luka Rijeka – Škrljevo
5. Free Zone Osijek
6. Free zone Split-Dalmatia
7. Free Zone Zagreb
8. Free port area of Ploče
9. Free zone of port Pula
10. Free zone of Rijeka port
11. Free Split Harbor Area.