Investments in Croatia

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Croatian Chamber of Economy
INVESTMENTS IN C R O A T I A
Vesna Trnokop Tanta, Vice-President CCE Zagreb,
September 2007
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FOREIGN DIRECT INVESTMENTS IN CROATIA by sectors
(1993 1st quarter 2007)
TOTAL EUR 15.2 bn

• Financial sector 33
• Chemical industry
  14
• Telecommunications 13
• Trade (wholesale and retail) 8
• Manufacture of coke, rafined petroleum
  4
• Extraction of crude petroleum and natural gas
  4
• Others 24

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FOREIGN DIRECT INVESTMENTS IN CROATIA Major
foreign investors (1993 1st quarter 2007)
TOTAL EUR 15.2 bn
Country Share of total
FDI 1. Austria 26 2. Netherlands
17 3. Germany 14 4. France
8 5. Luxemburg 7 6. Hungary
6 7. Italy
6 8. Slovenia 4
Source Croatian National Bank Edited by
Croatian Chamber of Economy
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FOREIGN DIRECT INVESTMENTS1993-1st quarter 2007

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FOREIGN DIRECT INVESTMENTSCroatia in the region

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INVESTMENT CONDITIONS

• Benefits for investors
• Equal treatment of foreign and domestic
  investors
• Free transfer of invested capital and profits
• Tax exemptions on revenues form capital
• No witholding tax
• No customs on imported equipment for the
  investment
• Trade and Investment Promotion Agency
• one-stop-shop offices
  Croatia wide
• Over 250 business zones, centres and incubators

250 business zones, centres and incubators
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LEGAL FRAMEWORK FOR INVESTMENTSInvestment
Promotion Law 2001-2006
Type of incentives

• Tax incentives (lower profits tax)
• Customs preferences (on equipment for the
  investments)
• Support for the creation of new jobs (single
  payment up to HRK 15.000)
• Support for training costs (up to 50 of costs)

Requirements

• Minimum EUR 500.000 (HRK 4 m)
• Newly established company (except in tourism
  activity)

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Effects of the Investment Promotion Law
2001-2006

• 57 projects
• total value ca HRK 7 bn
• ca 10.000 new jobs
• Projects structure
• textile industry (8 projects), tourism and
  services, trade
• processing industry (e.g. wood industry) to a
  lesser degree
• trade dominant in terms of project value and the
  creation of new jobs  

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LEGAL FRAMEWORK FOR INVESTMENTSInvestment
Promotion Law 2007
? European Commissions recommendations included
(DGCOMP March 2005) concerning regional
support, government support in the field of
company/entrepreneur taxation and support to
large investments
Type of incentives

• Tax incentives (lower profits tax)
• Customs preferences (on equipment for the
  investments)
• Support for the creation of new jobs (according
  to the unemployement rate)
• Support for training costs (according to the type
  of training)
• Incentives for large investment projects
  (partial coverage of costs)

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LEGAL FRAMEWORK FOR INVESTMENTSInvestment
Promotion Law 2007
Requirements

• Activities ? Manufacturing
• ? Technology and RD
  centres
• ? Strategic and business
  suport services
• Type of investment real estates, equipment,
  patents, royalty rights, new jobs...
• Newly established company, expansion of existing
  company, modernisation and/or diversification of
  business activity or products ect.
• Minimum EUR 300.000 (ca HRK 2 m)

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HOW THE CHAMBER CAN ASSIST FOREIGN INVESTOR?

• established 1852 umbrella institution of the
  Croatian business community
• More than 70,000 active members
• Network of 20 County Chambers direct connection
  with local and regional institutions
• CCE connects potential investors with private and
  public companies ?Croatian companies database
  Business opportunities exchange
• CCE provides advice and information about
  relevant regulations and laws in the field of
  investments (establishing a company, taxation,
  customs, financing, labour relations etc. )

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CROATIAN CHAMBER OF ECONOMY

• phone [phone]
• fax [phone]
• Rooseveltov trg 2
• 10000 Zagreb, Croatia
• e-mail eoi_at_hgk.hr
• www.hgk.hr

Thank you for your attention!