Each year, Croatia tweaks and adjusts their laws. This year, there are no changes in tax laws, but some other laws have been changed.
In this post, we will briefly review the major changes in Croatia’s laws that were implemented for 2022. They have been ordered by importance and magnitude.
The facts are these…
#1 Deadline extension for registering citizenship
Children of Croatians who are older than 21 can register for citizenship (instead of apply) in two cases. These cases are:
- If you were born after October 8, 1991 AND at least one of your parents was a Croatian citizen at the time of your birth AND you are older than 21, then you qualify to register your citizenship
- If you were born between January 8, 1977 and October 8, 1991 AND both parents were Croatian citizens at the time of your birth, then you qualify to register your citizenship
The deadline for registration was January 1, 2022. However the law has changed and the deadline has been extended to January 1, 2023.
#2 Quotas for employing foreigners
In addition to employing foreigners from the quota, it is also possible to employ other staff without prior implementation of the labor market test. The most important sectors without quotas are tourism, catering, and agriculture if employment is carried out for up to 90 days.
#3 Labor law
Changes regulation workers working through online platforms, defining work from home, and the time of availability of workers after working hours for calls and emails will be defined in more detail.
#4 Croats can travel visa-free travel to the US
Croatian citizens can now enter the US under simplified procedure.
#5 Minimum wage
The current minimum wage for full-time work is 4.250 kuna. In 2022, it will increase to 4.687,50 kuna. This is an increase of about 350 kuna in net amount. All overtime work, work on non-working days, work in shifts, and other allowances from collective agreements can no longer be listed under the minimum wage. The minimum fee for performing student work (student jobs) is 29,30 kuna per hour.
[Read: Minimum wage salaries in Croatia]
#6 Rulebook on COVID-19 passports
Every employer who manages records of COVID-19 passports must have an appropriate rulebook in accordance with the GDPR.
#7 Consumer protection
Customers no longer have the right to choose whether they want to replace or repair a product if the product can be repaired.
The deadline for the material shortage of purchased products is prolonged from 6 months to one year. If sellers are not responsible for the shortage, consumers must refund the expertise costs to sellers.
Service of parking on arranged public areas and garages became a public service. This change obliges companies to organize a commission for consumer complaints and other legal adjustments.
During sales, promotions, and price reductions, sellers must publish old prices, new prices, and the lowest price in the last 30 days.
If a product differs significantly in ingredients or other properties from its counterpart sold in other EU/EEA member states, it cannot have the claim that it is identical to the product sold in other EU/EEA member states.
*The reason this is of note is because many products sold in Croatia have been found to be inferior and of lesser quality than the identical product sold in other parts of the EU.
#12 Revenge pornography became an offense
Those who give intimate recordings made with the consent and for personal use to others, without the consent of the person being recorded will be sanctioned with 1-3 years in prison.
#13 Censorship of Internet comments
With the amendments to the Law on Electronic Media, portals and other publishers of electronic publications are responsible for all content they publish, including user-generated content. Media editors and owners may be punished for racist comments, for example, that readers leave on journalistic texts.
This has already led to censorship, so some portals have banned readers’ comments since the fines are from 100.000 kuna to 1 million kuna.
#14 Lawsuits against leasing companies
If a leasing company has overcharged their customers, customers can send a request for a refund to leasing companies.
#15 Compensation for lost rent to owners of apartments inhabited by protected tenants
The state attorney’s office has begun making deals with landlords whom hold apartments where protected tenants live. Protected tenants can continue to live in these apartments, and landlords are urged to seek compensation from the state for lost rent.
#16 Cryptocurrency taxation
The company Electrocoin enabled payments in cryptocurrencies within the cities of Cres and Sveta Nedelja, as well as with companies Konzum and Tifon.
From 2021, the change from cryptocurrency to fiat money will be taxed at a single capital gains tax rate of 10% on the difference in value increase. Exceptionally, if a cryptocurrency is held for more than two years, no tax is paid. The same goes for the replacement of a cryptocurrency with another cryptocurrency.
Income tax is paid on mining income at rates depending on the status of the taxpayer.
#17 Euro loans
In addition to loans in Swiss francs, it is possible to dispute euro loans that had unfair provisions.
#18 Limitation period for utility fee
The limitation period for the utility fee is 3 years from the due date of each individual benefit.
#19 Electricity price
The price of electricity will increase from April 1. Prices are still unknown.
#20 Whistler act
Every employer with more than 50 employees should have a whistleblower rulebook and appoint a commissioner and deputy head of the procedure.
#21 Protected account for craftsmen and free professions
Craftsmen and freelancers can now open a protected account during enforcement proceedings.
#22 APN subsidies
A new application for housing loan subsidies is expected in March and April 2022. Commercial banks have increased the amount of salary an individual must have after paying annuities from 3.000 kuna to 4.000 kuna.
#23 State budget act
Mayors and prefects must display all the costs of their local self-government on their websites, otherwise, they may be penalized with a fine from 10.000 kuna to 50.000 kuna.
#24 Plastic bags ban
Plastic carrying bags with a wall thickness of 15 to 50 micrometers are banned. However, shops that had them in stock as of January 1, 2023 can continue to distribute them until stocks run out. Lightweight plastic carrying bags thinner than 15 micrometers used for bulk food can still be used.
#25 Swiss work permit
Switzerland has opened its labor market to Croatian workers.
#26 HGK membership fee
96% of Croatian companies will be entitled to a voluntary membership fee in the Croatian Chamber of Commerce instead of mandatory. All companies must stay members of HGK, but only those that belong to the second and third categories are obliged to pay a membership fee. The ones that belong to the first category can pay a voluntary membership fee.
The amount of the monthly membership fee for the first group is 150 kuna or 300 kuna, depending on the amount of annual income. The amount for the second and third groups is 1.083 kuna and 3.973 kuna per month, depending on the amount of annual income.
#27 Deadline for donations without VAT is prolonged
The deadline for tax-eligible donations without VAT has been extended until the end of 2022.
[Read: PDV (Value Added Tax) in Croatia]
View our other law articles
- Brits post-Brexit in Croatia: New laws and rulebook governing long-term stay
- Changes to Croatia’s tax laws (Effective starting 2021)
- Domestic Abuse in Croatia, According to the Law
- Gun and weapon laws in Croatia
- How laws are made in Croatia
- Mandatory vaccinations required by law
Please note: All information provided by Expat in Croatia is only for the purposes of guidance. It does not constitute legal or financial advice in any form. For legal advice, you must consult with a licensed Croatian lawyer. For financial advice, you must consult with a licensed Croatian tax advisor or accountant. We can recommend one if you contact us.