Why invest in Croatia?

As an up and coming Mediterranean county, world known for its beautiful locations and historical cities, Croatia attracts millions of travelers from the world. Whether they are economic moguls, sports superstars, famous actors and singers or ordinary people searching for an ideal vacation, they all fall deep in love with Croatia.

Unique geographical location, modern infrastructure, political and economic stability, competent and highly educated workforce are only some of the reasons to invest in Croatia. Central European, Danubian, and Mediterranean at the same time, with a unique geographical location, this country links Europe to the world. Modern transport and energy infrastructure, untarnished soil, unpolluted sea and rich sources of fresh water provide the foundations for Croatia to build its future on and further develop in the European and world markets.

Here are five strong reasons why investing in Croatia is a great idea!

 

Easier access to European and world markets

 

 

Croatia is situated at the heart of Europe, only two or three hours air distance to any European destination. With its unique geostrategic position and the farthest reaching European sea inlet, Croatia is a gateway to Central and Eastern Europe providing an easy access to European and world markets.

 

Modern transport infrastructure

 

 

Croatia has highly developed road and rail network, the network of international seaports of great importance, the network of river ports and airports, as well as inland waterways and intermodal terminals.

 

The network of modern motorways places Croatia together with leading European countries. There are three Pan-European International corridors passing through Croatia, making it an essential part of all major European and international transport routes. The country is 100% digitized, with its entire territory covered by broadband Internet. It’s highly developed natural gas distribution network places it at the very top of European countries.

 

Land connection to all European transport routes:

  • 29,547 km of roads
  • 2,726 km of rail network
  • 2-3 hours air distance to any European destination:
  • 7 international airports (Zagreb, Split, Dubrovnik, Zadar, Rijeka, Pula, Osijek) and 2 airfields (Mali Lošinj, Brač) 
  • The inmost sea into the heart of the European continent
  • 6 seaports (Rijeka, Ploče, Šibenik, Zadar, Split, Dubrovnik)
  • 4 river ports (Vukovar, Osijek, Slavonski Brod, Sisak)
  • One of the most developed natural gas distribution networks in Europe
  • 100% digitized country
  • 100% broadband Internet coverage

 

Reliable investment and business environment

 

 

The Croatian legal framework governing foreign investment has been designed in a way that does not make any difference between domestic and foreign investors. All possibilities in relations between domestic investors are also open to foreigners investing capital in Croatia. 

Moreover, foreign investors enjoy additional guarantees that are not given to domestic investors. The Croatian Constitution provides that no law or other legal documents shall reduce the rights granted to a foreign investor at the time of investment in Croatia. It also guarantees the free repatriation of profits or capital upon fulfillment of all legal obligations. 

Being a full member of NATO and the 28th member of the European Union (1 July 2013), Croatia guarantees stability and the safety of business activities. Croatian legislation, harmonized with the basic postulates of the European Union, ensures business activities of the highest standard and opens the possibility of using EU funds, while agreements for the avoidance of double taxation signed with over 50 countries, provide Croatia with additional benefits.

 

Highly educated, multilingual and competent workforce

 

 

Croatia is a country of a multilingual and highly educated workforce. With 56 high-education institutions, out of which 7 are universities, Croatia offers a pool of various skilled and educated workforce. Croatia also has the highest percentage of persons in the age group 20 to 24 who have completed at least secondary school education. 

Did you know that the University of Zagreb, comprised of 34 faculties, is one of the oldest universities in this part of Europe providing education to students continuously since its establishment in 1669? According to the Human Development Index, Croatia ranks 47 out of 187 countries. In the period from 1990 to 2012, Croatia showed a 12% increase, that is an average annual increase of about 0.5%. 

 

EDUCATION in numbers:

  • 7 public universities with over 150,000 students a year; over 190,000 students in college and university programs a year
  • 99% of secondary school students learn English as a foreign language (Eurostat)
  • 95.7% of young people with secondary school education (20-24 years old)
  • 56 high-education institutions: (7 universities)
  • 152,857 students in 2011/2012
  • 36,488 graduates in 2011

 

A high quality of life

 

 

Croatia is truly a unique country – nowhere in the world can three different climate zones – continental, mountainous and Mediterranean, be found in only 400 km (the distance between the North and South of the country). From hilly and gentle Zagorje in the North, through vast fertile plains of Slavonia in the East, Lika and Gorski Kotar rich in forests and rivers, to Dalmatinska Zagora, bounded by mountain ranges and typical Dalmatian karst, all the way to its indented coastline stretching from Istria to South Dalmatia with over a thousand islands, Croatia is truly a world’s treasure.

Good transport connection between the continental and coastal part of the country – morning skiing at Bjelolasica, and the experience of one of the most beautiful sunsets on the Adriatic coast only a few hours later – the abundance of cultural activities and historic heritage, the proximity of other European cultural and business centres, clean water and air, traditional and organic growing of agricultural products and healthy Mediterranean lifestyle provide all the conditions necessary for a pleasant, high quality life anywhere in Croatia.

 

1.7 bn EUR foreign investment in Croatia in 2016

In 2016, foreign direct investment to Croatia amounted to 1.7 bn EUR showing an increase of 9 times compared to the year 2015. The investments in last year have been made in financial services, real estate, retail trade, construction of buildings and wholesale trade. The leading investors were Italy, Netherlands, Luxembourg, Germany, and Sweden.

 

Economic indicators for 2016

The cumulative amount of foreign investments from 1993 to 2016 amounts to 31 billion EUR with the Netherlands, Austria, Italy, Germany, and Luxembourg as the leading investors, who invested mostly in the financial sector, wholesale trade, real estate, telecommunications and retail trade.

 

GDP (2016)45.6 bn EUR
GDP per capita (2016) 10,929 EUR
Inflation (2016) -1.1%
Unemployment rate (ILO, 2016) 13.1%
Average net salary (Apr 2016) 764 EUR
Export (2016) 12.32 bn EUR
Import (2016) 19.69 bn EUR
FDI (1993-2016) 31 bn EUR
Exchange rate HRK (2016) EUR 7.5294
Exchange rate HRK (2016) USD 6.8037

Data source: Croatian Chamber of Economy.