Foreign investors’ status

Pursuant to the Companies Act, domestic and foreign companies operate under equal conditions. A foreign investor may establish or participate in establishing a company and may acquire rights and/or obligations under the same conditions as any domestic investor. Foreign investors, with their registered head office or residence in a country that is not a member of the WTO, should satisfy condition of reciprocity.

The Constitution of the Republic of Croatia stipulates several guarantees for foreign investors. In particular, it stipulates that all rights acquired by investing capital will not be limited by law or other legal act, and that foreign investors are guaranteed free transfer and repatriation of profits and invested capital.

A foreign person who wishes to acquire ownership of real estate in Croatia has the right to do so only if there is a mutual possibility for Croatian persons to do the same in the foreign person’s country. This restriction does not relate to citizens and legal entities from EU Member States. Such persons acquire right of ownership of real estate under preconditions valid for exercising property rights by citizens of the Republic of Croatia and legal entities with their seat in the Republic of Croatia, except on exempted properties, i.e., on agricultural land determined by special law and protected areas according to special law. A foreign investor may establish a company in Croatia which, as a domestic legal entity, may acquire property without restrictions.

The Republic of Croatia does not screen foreign direct investments. However, it is part of the mechanism for screening of foreign direct investments into the Union for reasons of security or public order in accordance with 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, in relation to foreign direct investments not undergoing screening.