Foreign direct investment screening for the protection of national security and public order in the Republic of Croatia is regulated by the FDI Screening Act (Official Gazette 136/25). The Act implements the obligations arising from Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union and enables the Republic of Croatia to assess and supervise investments that may affect security and public order.
According to the Act, foreign investment means any direct or indirect investment of any kind in an obliged entity whereby a foreign investor acquires or increases a qualified shareholding, or obtains a controlling position, including effective participation in the management or control of the obliged entity, for the purpose of carrying out an economic activity or the economic use of public or other goods in Croatia.
An obliged entity is a trader or company, regardless of its legal form, established or operating in Croatia, which operates or is to be established in connection with a foreign investment, and in respect of which the investment affects or may affect national security or public order.
A foreign investor may be: a natural person who is not a national of Croatia or an EU Member State (including dual nationals with a third country) and stateless persons; an investment migration intermediary; a legal person established in a third country (incl. trusts and similar arrangements); a legal person in Croatia or the EU under direct or indirect control of a foreign investor or a public authority of a third country; a subsidiary or branch under such control.
The obligation to submit a request for investment approval applies when a foreign investor acquires at least 10% shareholding in an obliged entity or obtains a controlling position, and when changing a qualified shareholding (alone or acting jointly), or carrying out reorganisation transactions resulting in control.
A request must be submitted to the Ministry of Finance before completion of the investment. An investment that is not notified, when notification is required, is considered an unnotified foreign investment and may be subject to control and corrective measures. The Act provides deadlines for administrative review and decision-making, with possible extensions where additional analysis or cooperation within the EU mechanism is required.
For more information please contact:
Ministry of Finance
Prevention of Money Laundering Office
Tel: +385 1 6345 450
E-mail: info.uzspn@mfin.hr
mfin.gov.hr
