Grants include:

  1. tax subsidies for micro-entrepreneurs
  2. tax subsidies for small, medium and large enterprises
  3. support for justified costs of new jobs associated with the investment project
  4. support for justified training costs related to the investment project
  5. grants for:
    a) development and innovation activities
    b) business support activities i
    c) high added value service activities
  6. grants for the capital costs of the investment project
  7. grants for labour-intensive investment projects
  8. support for investment projects through the economic activation of inactive assets owned by the Republic of Croatia
  9. support for the modernization of business processes - automation, robotization and digitization of production and processing processes

 

Incentive measures can be used by entrepreneurs registered in the Republic of Croatia who invest in fixed assets in the minimum amount of:

  • 50.000 € and with the opening of at least 3 new jobs for micro-entrepreneurs
  • €150.000 and with the creation of at least 5 new jobs for small, medium and large entrepreneurs
  • €50.000 and with the condition of opening at least 10 new jobs for centers for the development of information and communication systems and software
  • €3.000.000 and with the condition of opening at least 15 new jobs for investment projects through the economic activation of inactive assets owned by the Republic of Croatia
  • €500.000 for investment projects in the modernization and increase in productivity of business processes

 

Support for the initial investment is calculated as a percentage of the value of the investment, which is determined on the basis of justified investment costs. Justified investment costs of:

  • tangible (value of real estate/buildings and equipment/machinery) and intangible assets (rights to patents, licenses, know-how), or
  • 2 years gross salary

The minimum period of preservation of the investment and new jobs created related to the investment is 5 years for large entrepreneurs, and 3 years for small and medium-sized entrepreneurs, but it cannot be shorter than the period of using incentive measures.

Tax incentives

Investment amount (€ million)Number of new employeesPeriod of preservation of new jobs (years)Reduction of the profit tax ratePeriod (years)
0,15 -1 (0,05-1 for micro and for centers for the development of information and communication systems and software)5 (3 for micro, 10 for centers for the development of information and communication systems and software)3 (SME), 5 (large)50%10 (5 for micro)
1 - 3103 (SME), 5 (large)75%10
>3153 (SME), 5 (large)100%10

Employment incentives

Unemployment rate by countyIncentive measures for justified costs of creating new jobsIncentive measures for development and innovation activitiesIncentive measures for business support activities and high added value service activities
<10%- 10% (max. €3,000) for employment of groups of persons prescribed by Article 9, Paragraph 3 of the Regulation on Investment Promotion*
- 4% (max. €1,200) for employment of other persons
+50% (€1,500)


+50% (€600)
+25% (€750)


+25% (€300)
10-15%- 20% (max. €6,000) for employment of groups of persons prescribed by Article 9, Paragraph 3 of the Regulation on Investment Promotion*
- 8% (max. €2,400) for employment of other persons
+50% (€3,000)


+50% (€1,200)
+25% (€1,500)


+25% (€600)
>15%- up to 30% (max. €9,000) for employment of groups of persons prescribed by Article 9, Paragraph 3 of the Regulation on Investment Promotion*
- 12% (max. €3,600) for employment of other persons
+50% (€4,500)


+50% (€1,800)
+25% (€2,250)


+25% (€900)

Support for development and innovation activities

For investments in technological development and innovation activities, non-refundable financial support will be granted for the purchase of equipment/machines in the amount of up to 20% of the actual justified costs of the purchase of equipment/machines, and in the maximum amount equivalent to HRK 0,5 million, with the condition that the purchased equipment /machines must be of high technology.

Support for justified training costs

It cannot exceed the maximum intensities as follows:

up to 50% of eligible training costs**+ 10% for the training of disabled workers*+10% if the grant is awarded to a medium-sized entrepreneur*+20% if the support is awarded to a small and micro entrepreneur*

*must not exceed 70% of eligible training costs, nor 50% of the amount of non-refundable financial support for the creation of new jobs related to the investment
**Eligible training costs are the lecturers' costs, for the hours during which the lecturers participated in the training; business expenses related to lecturers and participants, which are directly related to the training project, such as travel expenses, costs of materials and consumables directly related to the project, depreciation of tools and equipment, if used exclusively for the training project. Accommodation costs are excluded.

Incentive measures for capital costs of the investment project in production and processing activities

Conditions for exercising the right to incentive measures for the capital costs of the investment project: investment in fixed assets in the amount of at least 5 million euros with the condition of creating at least 50 new jobs.

County unemployment rateCapital Expenditure Incentives
10-15%Non-refundable financial support in the amount of 10% of justified investment costs for:
• costs of building a new factory, industrial plant,
• costs of purchasing new machines, i.e. production equipment,
(in the maximum amount of EUR 0,5 million, with the condition that the share of investment in machines/equipment amounts to a minimum of 40% of the total value of the investment, and a minimum of 50% of the purchased machines/equipment must be high-tech equipment)
>15%Non-refundable financial support in the amount of 20% of justified investment costs for:
• costs of building a new factory, industrial plant,
• costs of purchasing new machines, i.e. production equipment,
(in the maximum amount of EUR 1 million, with the condition that the share of investment in machines/equipment amounts to a minimum of 40% of the total value of the investment, and a minimum of 50% of the purchased machines/equipment must be high-tech equipment)

Incentive measures for labor-intensive investment projects

Number of newly created jobsIncreasing support for the creation of new jobs
100 and over25%
300 and over50%
500 and over100%

Support for investment projects through the economic activation of inactive assets owned by the Republic of Croatia

Inactive property in the sense of this Act consists of land and/or buildings owned by the Republic of Croatia, which are managed by the Ministry of Spatial Planning, Construction and State Property, and which are not in operation and on which no economic activities are carried out.

Investment amount (€ million)Number of new employeesCompulsory investment in inactive assetsSupportProcedure for obtaining a lease
315an increase in the value of the inactive asset by 50% within 3 years of leasing the asset in relation to the estimated value of the asset at the time of leasing (not including in that calculation the value of the entered equipment that represents an investment)free lease of inactive property for up to 10 years from the start of the investment- for investment in LGUs with a lower development index (I.-IV.) - without additional conditions

Support for the modernization of business processes - automation, robotization and digitization of production and processing processes

Only for investment projects in the manufacturing and processing industry, that is, for investment projects in manufacturing and processing activities.

The minimum amount of investment in fixed assets is EUR 500.000, with the condition of preserving the initial state of employees during the entire period of use of the aid, and not shorter than the minimum period of preservation of the investment project in question for which it is intended to use the aid for the modernization of business processes.

Investment amount (€ million)The difference in the level of productivity per employee after 3 yearsSubsidies for the modernization of business processes (reduction of the profit tax rate)
0,5-1>10%50%
1-3in relation to the level of productivity per employee in the period of one year before the application of the investment project75%
>3100%

According to the application procedure for the use of incentive measures based on the Law on Investment Promotion, an entrepreneur who wants to acquire the status of holder of incentive measures is obliged to submit an Application for the use of incentive measures in the form of prescribed forms to the Ministry of Economy and Sustainable Development before the start of the investment project.

Learn more at: https://investcroatia.gov.hr/poticaji-za-investicijske-projekte/