Exporting to Croatia

Croatia occupies a strategic location at the heart of Central and Eastern Europe. Its economy is gaining strength and it offers a market with significant growth potential.

Growing economy

The Croatian economy is one of the most developed in Southeast Europe. It is characterised by an increasing number of vibrant and innovative companies across multiple industry sectors. These internationally competitive businesses have strong growth potential and could be excellent partners for UK suppliers.

Opportunities for UK companies

Croatian consumers are increasingly sophisticated and affluent, and English has become the preferred business language. The country boasts equal rights for domestic and foreign private and legal entities. It also guarantees free transfer of capital and profit repatriation to investors.

Emerging Europe

Croatia can act as a gateway to trade with other countries in the Central and Eastern Europe region, a market of over 100 million consumers (World Bank, 2019) which offers great potential for British businesses. In addition, the region is easy to access from the UK and features strong economic growth compared with Western Europe.

Ease of doing business

51st

out of 190 countries (World Bank, 2019)

Currency

Kuna

Business language

Croatian, English

GDP per capita

$14,870

UK is $41,030 (IMF, 2019)

Economic growth

2.6%

(IMF, 2019)

Time zone

GMT +1

Opportunities for exporters

There are opportunities for UK companies across a broad range of industries. Our trade advisers in Croatia have identified particular opportunities for UK businesses in the following sectors.

Doing business Croatia

Preparing to export

VAT

If you’re registered for VAT in the UK, it may be possible to zero-rate the goods you export to Croatia, provided certain conditions are met.

The usual rate for VAT (called PDV in Croatia) is 25%, but the rate for tourism-related activities is 10%.

Corporate tax

All companies in Croatia are required to pay a 20% tax on profits.

Croatia’s Tax Administration oversees the taxation system. The Department for Investments and Competitiveness provides details of incentives available to companies in free trade zones.

Regulations

Products and packaging should meet EU standards.

The Croatian government allows multi-language labelling and stickers. However, one of the languages must be Croatian.

There are regulations about information that every label needs to contain, with additional information required for specific products.

Operating in Croatia

Intellectual property

As a first step, we advise you to speak to an intellectual property (IP) lawyer if you think you need patent protection when exporting.

The State Intellectual Property Office is responsible for IP in Croatia.

Payment terms

Payment deadlines to suppliers generally range from 20 to 60 days, with the average being 30 days.

Next steps

DIT can advise you on doing business abroad, and help put you in touch with other people who can help such as lawyers and distributors.