Starting a Business in Croatia 2026 Investor Handbook for EU and non-EU Entrepreneurs

Establishing a business presence in Croatia offers meaningful strategic advantages: a stable EU jurisdiction, access to European markets, and growing opportunities in sectors such as tourism, technology, marine services, real estate, and renewable energy. Croatia welcomes international investors, but administrative requirements and regulatory steps can be unfamiliar for those without local support.

But before you dive in, it’s important to understand how things work here. This guide provides a clear and practical overview of starting a business in Croatia as a foreigner: legal structure, Director obligations, OIB number Croatia, banking, tax rules, and compliance. Structuring your business correctly from the start is essential to ensure smooth operations and avoid delays.

We Know Why Croatia Is a Strong Location for Foreign Investors

If you want to be in the EU without the heavy price tag of major capitals, Croatia is a pretty smart choice. You get 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 (obrt ili doo?)

Your structure impacts 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.

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.
The minimum share capital required is EUR 2,500.00.

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.

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.

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.

Recommendation: Register a d.o.o. Croatia. It provides strong legal protection, better access to finance, and the flexibility expected by international partners and tax authorities.

Insight note: Registering obrt in Croatia is typically only possible if the founder already has EU residence. Liability is fully personal.

Step-by-Step: Opening a company in croatia in Croatia as a Foreigner

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. Identity & Name Clearance

You’ll need a Croatian personal tax number (OIB) before anything else can move forward.
At the same time, the company name is checked to ensure it is unique and can be officially reserved.
This will help avoid rejection later in the process.

2. Incorporation Documents Executed

Founders sign the Articles of Association and related documents with a public notary.
If you’re abroad, a power of attorney, notarization, and apostille may be required which is why planning is important. Your legal representative will ensure the documents meet Croatian standards.

3. Capital Deposit & Court Registration

At least 25% of the share capital (minimum EUR 2,500 for a d.o.o.) must be paid into a temporary bank account.
With that complete, the registration application is submitted to the Commercial Court for approval.

4. Company Activated & Activities Registered

Once approved, your company receives its official OIB and registration decision.
The business activities are then listed with the Croatian Bureau of Statistics, meaning the company becomes legally recognized and defined.

5. Banking & Fiscal Setup Finalized

A permanent business bank account is opened, and the company is registered for pension (HZMO), health insurance (HZZO), and with the Tax Authority. VAT (PDV) registration may be immediate or delayed depending on your business model and turnover expectations, we can help you evaluate what is most efficient.

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.

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 residency by investment

For non-EU nationals including founders from the US, UK, Canada, Australia, New Zealand, and other third countries – business ownership 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 residency by investment and business-based residence options, read this article: https://mandracchio-capital.com/croatia-residency-by-investment

Croatia VAT System (PDV): Register Now or Later?

VAT in Croatia is called 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 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.

If you are from the US, UK, Canada, Australia, New Zealand, or another non-EU country and applying for business residency, tax compliance must be stronger from the beginning. Even if most clients are international, authorities expect proper invoicing and a credible commercial plan to justify work and stay permits.

Accounting and Compliance: What You Should Expect

All Croatian limited liability companies, both d.o.o. and j.d.o.o. must maintain accurate and timely reporting, including:

• 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

Croatian banks review ownership structure, business purpose, and documentation before approving a corporate account. This step is essential and can take longer without strong local representation.

If you accept card or cash payments in Croatia, fiscalization must be activated before your first transaction. The system reports each transaction in real time to the Tax Authority.

If you are an EU citizen with complete documentation and a straightforward activity description, remote onboarding may be possible and processing tends to be faster.

If you are from the US, UK, Canada, Australia, New Zealand, or another non-EU jurisdiction, additional compliance checks such as document apostilles and business activity explanations are often required and may extend the onboarding timeline.

Costs of Opening a Company in Croatia

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 an EU citizen operating initially from another EU jurisdiction, setup may be simpler and operating costs reduced until relocation.

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.

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.

If you are from the US, UK, Canada, Australia, New Zealand, or another non-EU country, residency requires you to:

• Act as the working Director
• Earn a qualifying salary
• Pay social contributions
• Maintain regular commercial activity

Many investors incorporate first, begin business operations, and then apply for residency once contracts and revenue establish a clear economic basis.

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

Avoid restructuring costs by starting correctly.

Ready to Start Your Company in Croatia?

If you want to establish a business in Croatia with full legal certainty from the first day, the most efficient path is to work with a local partner experienced in supporting foreign investors. Mandracchio Capital provides a complete Company Formation Service tailored specifically to non-resident founders:

• Company formation and Commercial Court filings
• OIB registration for founders and the company
• Banking compliance and account opening support
• Director services when needed
• Accounting setup and tax consultant coordination
• PDV VAT strategy based on your revenue model
• Transparent pricing and timeline – confirmed before engagement

Your next steps: Explore our Company Formation Service

FAQ

How much does it cost to start a company in Croatia?

The minimum share capital is EUR 2,500 for a d.o.o., but total setup costs depend on the chosen investment options in Croatia.
In practice, founders should budget for notary fees, Commercial Court registration, a registered business address, and ongoing accounting services.

For foreign-owned companies, additional costs may include a mandatory director salary and social contributions, unless exempt through employment abroad (for example, via an EU A1 certificate).

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. Delays are common due to manual bureaucracy and approval processes.

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. Many foreign owners appoint a Croatian-based director if they don’t seek 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 PDV to reduce 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. 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.