Starting a Business in Croatia for foreigner: 2026 Handbook

Starting a business in Croatia for foreigner comes with some very real advantages. You’re operating inside a stable EU country, gaining access to the wider European market, and tapping into growing sectors like tourism, technology, marine services, real estate, and renewable energy. For entrepreneurs and companies looking to invest in Croatia, it strikes a rare balance: EU market access without the cost levels of Europe’s major capitals.

Croatia is open to international investors, including foreign direct investment in Croatia, but the process isn’t always intuitive. Administrative steps, local regulations, and documentation requirements can feel unfamiliar, especially without on-the-ground guidance.

Before you decide to invest in Croatia, it’s important to understand how things work here.

We Know Why Croatia Is a Strong Location for Foreign Investors

For founders starting a business in Croatia, the country offers a rare balance: EU market access without the cost structure of major European capitals. Many founders choose Croatia because it offers direct access to Europe’s market, strong universities feeding into modern industries, and a business environment that’s improving every year. It’s a place where investors can build something long-term, whether that means scaling a company or growing a lifestyle business, with room to breathe, expand, and enjoy life along the way.

Choosing the Right Business Structure in Croatia

When starting a business in Croatia, your choice of legal structure directly affects taxation, personal liability, credibility, and how easily you can grow or bring in partners later. Many investors start by comparing obrt vs d.o.o. (“obrt ili doo?”), and quickly realize that only d.o.o. fully supports foreign investment goals.

For a structured overview of all available options, read our full guide: Company Formation in Croatia: Types of Business Entities Explained for Foreign Investors

Structure	Best For	Liability	Capital	Suitable for Foreigners
d.o.o. Croatia (LLC)	Most investors	Limited	€2,500	Yes
Obrt Croatia	EU resident tradespeople	Personal	€0	Risky for liability
j.d.o.o.	Micro businesses	Limited	Low	Limited scalability
Branch Office	Expanding companies	Parent liable	€0	Yes
Rep. Office	Non-commercial market presence	N/A	€0	Cannot generate revenue

d.o.o. – Limited Liability Company (LLC)

A d.o.o. is the most common structure for foreign-owned businesses in Croatia.
It allows 100% foreign ownership, offers limited liability protection, and is flexible enough for startups and growing companies.

To understand this structure more deeply, visit our article on d.o.o. limited liability company formation in Croatia and see what the process involves.

“For non-resident founders, the d.o.o. is the most common and internationally recognised structure, offering limited liability and full compatibility with Croatian banking and tax systems.”

j.d.o.o. – Simple LLC

A j.d.o.o. is a simplified version of the standard LLC, often chosen by very small businesses or new founders testing a business model.
It also provides limited liability but requires a symbolic minimum capital (historically only HRK 1).
It can be a cost-effective entry structure, with the option to convert into a full d.o.o. as the business grows.

If you’re unsure whether a d.o.o. or j.d.o.o. is a better fit for your plans, you can explore our comparison guide on d.o.o. vs. j.d.o.o. for a clearer decision.

“A j.d.o.o. can be a useful entry structure, but it is best viewed as transitional. Most foreign founders ultimately convert to a standard d.o.o. once operations scale.”

Obrt – Sole Proprietorship

Obrt is the simplest way to operate a small business in Croatia.
Both local residents and foreign nationals with legal stay can register it.
However, the owner is personally liable for business obligations, making it more suitable for low-risk, service-based operations.

Branch Office

A branch allows a foreign company to operate directly in Croatia without forming a separate legal entity.
No minimum share capital is required.
The parent company remains fully responsible for all obligations, making this a practical option for expanding an existing business into the Croatian market.

Starting a business in Croatia for foreigner: a d.o.o. remains the most reliable structure. It offers strong legal protection, credibility with banks and partners, and the flexibility expected by international investors and tax authorities.

Costs of Opening a Company in Croatia

When starting a business in Croatia for foreigner, total costs vary depending on structure, director role, and whether the company will support tax residency.

Typical setup costs:
• d.o.o. with active Director and tax residency: ~ €12,220
• Branch office: ~ €12,920
• Representative office: ~ €12,520

If you are from the US, UK, Canada, Australia, New Zealand, or other non-EU countries and intend to relocate, additional onboarding support and compliance planning will be required to ensure the company remains aligned with residency obligations.

Step-by-Step: Opening a company in Croatia

If you want a deeper breakdown of how foreigners can start a company in Croatia in 7 steps for foreign nationals, including the differences between EU and non-EU nationals.

1. OIB & Name Clearance

Obtain Croatian tax numbers (OIBs) for founders and verify that the company name is available and compliant. Early clearance avoids delays later.

Using Croatia’s NKD (National Classification of Activities) system, you’ll select the business activities your company will perform.

2. Incorporation Documents Prepared

Articles of Association and related documents are drafted. Powers of attorney, notarisation, apostilles, and translations are arranged if founders are abroad.

3. Documents Executed Before a Notary

Founders formally sign incorporation documents before a Croatian public notary, with certified interpretation if required.

4. Share Capital Deposited

Share capital is deposited into a temporary account or via FINA. Bank confirmation is issued for court filing.

5. Commercial Court Registration

The incorporation application is submitted to the Commercial Court. Upon approval, the company is legally created and receives its registration decision and OIB.

In practice, company registration is submitted either through HITRO.HR (the government’s entrepreneur service desks operated via FINA) or electronically through e-Osnivanje.

EU/EEA citizens with Croatian digital identification may qualify for full online registration via e-Osnivanje.
Non-EU founders and most foreign investors typically register through a notary + HITRO.HR, which remains the most reliable route when foreign documents, apostilles, or banking compliance are involved.

6. Activities Registered (NKD)

The company’s business activities are registered with the Croatian Bureau of Statistics, formally defining its operational scope. Within 15 days, the company must register with the Croatian Bureau of Statistics (DZS) to confirm its primary NKD activity code.

7. Banking & Tax Setup Completed

A permanent corporate bank account is opened, and the company is registered with the Tax Authority, pension (HZMO), and health insurance (HZZO). VAT registration is handled if applicable. At incorporation stage, banks open a temporary capital account used solely for share capital deposit; after court registration, this is converted into the company’s permanent operational account.

Typical incorporation timeline: 2–4 weeks when documents are complete.
It may take longer if translations, apostilles, or bank compliance reviews are still pending.

Expert insight: Croatian authorities are strict about paperwork accuracy. Even one missing item or untranslated document can slow down approval which is why working with the right local team makes the process significantly smoother.

Key Service Providers

• Public Notaries: Essential for notarizing documents.
• HITRO.HR: A one-stop shop for submitting documents and paying fees.

Owners vs Directors: Foreign Founders Must Understand

Role	Operational Rights	Salary Required	Tax Exposure
Owner only	No	No	Dividends only
Director	Yes	Yes	Income + contributions

In Croatia, owning a company is not the same as running it.
Only the Director can legally operate and represent the company including signing contracts, invoicing clients, and fulfilling compliance obligations.

If you are an EU citizen, you generally have the right to live and work in Croatia without holding a separate residence permit. If you already contribute to social security in another EU country, presenting an A1 certificate may allow you to serve as Director while avoiding double contributions in Croatia.

Croatia VAT System (PDV)

When starting a business in Croatia for foreigner, VAT is referred to as PDV. Registration can be done immediately or once your company reaches the mandatory revenue threshold. The best timing depends on where your clients are located and how your business model works.

Standard PDV rules when starting a business in Croatia include:

• Standard rate: 25%
• Mandatory after €60,000 annual revenue
• Minimum 5-year commitment once registered
• Ongoing PDV filings monthly or quarterly

If you are an EU citizen building a client base gradually or serving mostly international customers, you may choose to delay PDV registration to protect early cash flow.

For founders from the US, UK, Canada, Australia, New Zealand, or other non-EU jurisdictions, starting a business in Croatia, especially when linked to a residence or work permit, requires a more robust compliance approach. Even if most clients are international, Croatian authorities expect proper invoicing, consistent reporting, and a credible commercial plan to support both tax compliance and immigration status.

“Early PDV registration is not always mandatory or optimal. Timing should be aligned with client geography, cash flow, and compliance strategy.”

Accounting and Compliance

When starting a business in Croatia for foreigner, accounting and compliance obligations apply from the moment the company is registered. All Croatian limited liability companies must maintain accurate, timely, and legally compliant financial reporting in line with Croatian and EU regulations. Key obligations when starting a business in Croatia typically include:

• Payroll and social contributions if a working Director is appointed
• Corporate income tax filings
• PDV filings if the company is registered for VAT
• Annual financial statements publicly submitted via the Court Register

Accounting support usually ranges €150–€300 per month, with additional annual reporting obligations depending on company activity.

If you are an EU citizen working from your home country, social contributions may remain payable there when properly documented, which can reduce the cost of operating the business in Croatia.

If you are from the US, UK, Canada, Australia, New Zealand, or any non-EU country acting as Director, you should expect payroll and contribution obligations to become active once you begin performing work, an important consideration for future residency applications.

Banking, Payment Gateways & Fiscalization (How Money Flows Are Regulated)

When starting a business in Croatia for foreigner, banking, payment acceptance, and fiscalization should be understood as one connected compliance framework, not separate steps.

Corporate Banking Reality

Opening a Croatian corporate bank account is mandatory and often underestimated. Croatian banks do not treat account opening as a formality — they assess the ownership structure, business purpose, expected transaction flows, and regulatory exposure before approving an account.

In practice, banks typically require:

• Identification of shareholders and directors
• Notarized incorporation documents
• A clear description of the company’s activities
• Evidence of economic substance and business rationale

While remote onboarding is sometimes possible, it is not guaranteed and depends on the bank, the company structure, and the risk profile of the founders.

EU vs Non-EU Compliance Differences

For EU citizens with complete documentation and a straightforward activity description, banking reviews are generally more predictable and processing timelines tend to be shorter.

For founders from the US, UK, Canada, Australia, New Zealand, or other non-EU jurisdictions, banks usually apply enhanced compliance checks, which may include:

• Apostilled and translated documents
• Source-of-funds verification
• Detailed explanations of planned business activities and client profiles

As a result, account opening may involve additional review rounds and longer timelines.

Accepting Payments & Fiscalization Obligations

Once a company is operational, accepting money from customers triggers additional legal requirements.

If the business accepts card or cash payments, fiscalization must be activated before the first transaction. Fiscalization is a real-time reporting system that:

• Registers each invoice or receipt with the Croatian Tax Authority
• Applies regardless of company size once commercial activity begins
• Is mandatory for retail, hospitality, and many service businesses

Payment gateways and POS systems must be properly integrated with the fiscalization framework to ensure every transaction is reported correctly from day one.

Ongoing Tax & Reporting Alignment

Once operational, Croatian companies must remain aligned with:

• Corporate income tax obligations (rates depend on revenue thresholds)
• VAT registration and reporting where applicable
• Annual financial statements and tax filings
• Accounting prepared in accordance with IFRS standards

These requirements apply across company types and are not usually decisive when choosing a structure, but they directly affect banking stability, compliance reviews, and long-term operability.

Residency Linked to Business Ownership

Owning a company can support residency when you take on an active role in daily operations – not if you only hold shares on paper.

If you are an EU citizen, you have the right to live and work in Croatia but must still register your stay after 90 days and document your activity.

Croatia residency by investment

For non-EU nationals including founders from the US, UK, Canada, Australia, New Zealand, and other third countries – starting a business in Croatia alone does not grant the right to work or reside in Croatia. To qualify for residency through business activity (often referred to as residency by investment), you must:

• Act as a working Director of the Croatian company
• Receive a qualifying salary in line with local regulations
• Pay mandatory social security contributions
• Ensure the company is properly registered, operational, and compliant

In practice, many international founders adopt a phased setup strategy. A local Director is appointed during the initial incorporation and operational phase, allowing the business to function immediately. Once relocation plans and residence permits are secured, founders often transition into the Director role themselves. This approach balances compliance, flexibility, and long-term residency planning.

For a detailed explanation of Croatia residency by investment and business-based residence options, read this article: https://mandracchio-capital.com/croatia-residency-by-investment

Common Mistakes Foreign Founders Should Avoid

Foreign entrepreneurs should be aware of operational rules not common elsewhere:

• Standard receipts are not deductible; R1 invoices required
• Payment acceptance requires approved fiscalization
• Changing registered address later requires a notary
• Banks can freeze onboarding for incomplete compliance
• Financial statements are public business records

Avoiding these issues early is essential when starting a business in Croatia for foreigner, as corrections later can be costly and time-consuming.

“At Mandracchio Capital, we see most delays and rejections arise not from law changes, but from structural and procedural mistakes made in the first year of company formation.”

Ready to Start Your Company in Croatia?

If you want to start a business in Croatia with full legal certainty from day one, the most efficient path is to work with a local partner experienced in supporting foreign founders and investors.

At Mandracchio Capital, our legal experts help founders connect with the right Croatian lawyers and advisors-professionals who understand cross-border business, foreign ownership issues, and multi-step cases. Our role is simple: guide you through company formation in Croatia so you can start confidently and avoid the common mistakes newcomers make.

Your next steps: Explore your options with guidance from professionals who work with international expats every day and avoid costly missteps later. Contact us to discuss your business plans and receive clear guidance on the most suitable structure for your situation.

Your Legal Partner for Doing Business in Croatia

Mandracchio Capital supports international clients looking to build, move, or expand their businesses in Croatia with clarity and regulatory confidence. With 500+ projects supervised, over €500 million in company value established, and a network of 100+ expert advisors, we act as a reliable partner for HNIs, investment funds, corporations, and senior executives, coordinating trusted Croatian lawyers and tax consultants to ensure your company setup, compliance, and documentation are handled correctly so your business enters Croatia with precision.

FAQ

How much does it cost to start a business in Croatia or Costs of Opening a Company in Croatia?

When starting a business in Croatia for foreigner, the minimum share capital is €2,500 for a d.o.o., but total setup costs depend on the chosen structure and investment model. It also involves registration fees, professional services such as legal and accounting support (depending on complexity).

Ongoing costs such as accounting, compliance, and registered office services also apply. In practice, total initial setup costs can range from under €100 for a basic online j.d.o.o. to several thousand euros for more complex company structures or foreign-owned setups.

How long does company registration take in Croatia?

Typically 2-4 weeks. Court registration can be fast, but banking, tax registration, and director compliance take extra time. When starting a business in Croatia for foreigner, delays are most commonly caused by banking compliance reviews, document apostilles, or manual administrative procedures.

Do I need to live in Croatia to run my company?

No. You can own a company from abroad and receive dividends. But if you act as Director, you must be legally allowed to work and pay contributions. When starting a business in Croatia, many foreign owners appoint a Croatian-based director if they do not intend to apply for residency.

Do I have to register for VAT (PDV)?

Only when revenue exceeds EUR 60,000 annually or if voluntarily opt-in.
Once registered, you must remain in the PDV system for 5 years. Businesses with mostly international clients often delay VAT registration when starting a business in Croatia for foreigner to reduce early cash-flow pressure.

Can I start a business in Croatia without citizenship?

Absolutely. You do not need Croatian or EU citizenship to start a business in Croatia. Non-EU founders commonly establish a Croatian d.o.o. and run their company remotely or from within Croatia (often paired with a residence permit application).

Can I stay in Croatia if I start a business?

Yes. Starting a company in Croatia can support a temporary residence permit application for non-EU citizens. Residency is not automatic, but company ownership and active business operations are accepted foundations for a residence permit.

Can foreigners do business in Croatia?

Yes. Foreigners can open and operate a business in Croatia without restrictions. Croatia allows non-EU and EU investors to establish companies, own 100% of the shares, and carry out commercial activities just like Croatian citizens.

Can I set up a self-employed stock trading company in Croatia for immigration purposes?

Yes, but it requires careful structuring.
Croatia allows foreign nationals to establish a company whose activity involves securities trading or investment management only if the business has a legitimate economic purpose beyond personal investing. In practice, pure “self-trading” vehicles used solely to justify residence are often rejected. A compliant structure typically involves advisory, portfolio analysis, fintech-related services, or other value-adding activities aligned with Croatian company law and immigration rules.

Professional legal and tax planning is essential before using a stock-trading business model as the basis for a Croatian residence permit. Contact us to assess whether your business structure supports Croatian residence requirements.