Government grants and loans for entrepreneurs in Croatia: Guide for 2023
Let’s be honest. Croatia is not a super entrepreneur-friendly place. It’s easy to point to high taxes as the reason it’s not a great place to open a business and call it a day. However, it is likely more friendly than you would think.
There are certainly improvements to be made, but the situation for companies in Croatia is not all bad. The government, both at the state and city level, has a variety of financial incentives and loan programs available to both Croatian and foreign entrepreneurs who wish to do business in Croatia.
This post, we detail all of these available programs including:
- Deadlines for applications
- Who qualifies to apply
- Purpose of the incentives
- Funding amounts
If you want assistance figuring out which funding program is best for you, contact us.
In this article, we cover:
- Programs available to Croatian and foreign entrepreneurs
- Programs available to Croatian entrepreneurs
The facts are these…
Government subsidy and loan programs available to both Croatian and foreign entrepreneurs
While there are some incentive programs only offered to small businesses owned by Croatian citizens, the state as well as some cities offer funding programs for businesses owned by foreign citizens too. Below is a list of the programs offered to both Croatian and foreign business owners in Croatia.
#1 ESIF Mikro investicijski zajam (ESIF Micro Investment Loan)
Deadline: Temporarily suspended due to use of funds
Available to: Croatian and foreign business owners whose company is registered in Croatia
ESIF Mikro investicijski zajam (ESIF Micro investment loan; ESIF stands for Europski strukturni i investicijski fondovi, i.e. European Structural and Investment Funds) is financed from the side of Europski fond za regionalni razvoj (European Regional Development Fund).
This loan is available via HAMAG-BICRO (Hrvatska agencija za malo gospodarstvo, i.e. Croatian Agency for Small Business, innovation and investment). It is a state agency that supports entrepreneurs during all the phases of their business, from idea development through launch to commercialization and marketing.
This incentive is intended for:
- Existing micro companies
- Existing small businesses
- Individuals that don’t have a registered business, but want to open one
The aim of this loan is:
- Establishment of crafts and limited liability companies (d.o.o. and j.d.o.o.)
- Modernization and expansion of the existing businesses
- Self-employment
- Keeping the existing and increasing the number of new working positions
The repayment period of this loan is 1-5 years, and the loan interest rate is 0,1 – 0,5%.
All details about this program, including the range of incentive amounts, can be found here.
#2 ESIF Mali zajam (ESIF Small Loan)
Deadline: Temporarily suspended due to use of funds
Available to: Croatian and foreign business owners whose company is registered in Croatia
ESIF Mali zajam (ESIF Small loan; ESIF stands for Europski strukturni i investicijski fondovi, i.e. European Structural and Investment Funds) is also financed from the side of Europski fond za regionalni razvoj (European Regional Development Fund). This loan is also available via HAMAG-BICRO, a state agency.
This incentive is intended for:
- Existing small businesses
- Individuals that don’t have a registered business, but want to open one
The aim of this loan is:
- Establishment of craft businesses and limited liability companies (d.o.o. and j.d.o.o.)
- Modernization and expansion of the existing business
- Self-employment
- Keeping the existing and increasing the number of new working positions
The repayment period for this loan is 1-10 years, and the loan interest rate is 0,1-0,5%.
All details about this program, including the range of incentive amounts, can be found here.
#3 Poticaji pri zapošljavanju osoba s invaliditetom (Support for the sustainability of self-employment of people with disabilities)
Deadline: the program will be applied until December 31, 2023
Available to:
- Disabled people registered with Očevidnik osoba s invaliditetom (A register of persons with disabilities). EU citizens must provide proof of invalidity from their home countries to register into Očevidnik.
- Croatian and foreign business owners whose company is registered in Croatia
This incentive is intended for people with disabilities who plan to launch their own company and employers who want to employ a person with disabilities.
They can get an incentive from the state institution “Zavod za vještačenje, profesionalnu rehabilitaciju i zapošljavanje osoba s invaliditetom” – ZOSI (Institute for Expertise, Vocational Rehabilitation, and Employment of Persons with Disabilities).
This incentive is intended for:
- Existing small, medium, and large businesses that employ persons with disabilities
- Individual persons with disabilities who don’t have a registered business, but want to open one
- Individual persons with disabilities who don’t have a registered business, but want to get a job in integrative workshops and protective workshops at small, medium, and large businesses
This non-refundable incentive includes:
- Subsidized salary – the subsidy amount depends on the professional diagnosis of the employee and it is between 10% and 70% of the minimal salary
- Co-financing of education costs
- Co-financing the costs of adaptation to the workplace
- Co-financing the costs of adjusting the working conditions
- Compensation of the obvezno zdravstveno osiguranje (mandatory health insurance)
- Co-financing the costs of professional support
- Additional funds for the development of new technologies and business processes for people with disabilities
- A support for the sustainability of self-employment of people with disabilities
More information about this incentive and mandatory documentation for the submission of the request is available here. A detailed program can be examined in this document.
#4 Potpore za pripravništvo (Employment grants for gaining first work experience / traineeship)
Deadline: None
Available to: Croatian and foreign business owners whose company is registered in Croatia who wish to an employ a young Croatian citizen
Potpore za zapošljavanje za stjecanje prvog radnog iskustva – pripravništvo (Employment grants for gaining first work experience / traineeship) from HZZ is a state incentive for young people who are Croatian citizens and are starting with their first job.
This incentive is intended for these existing business:
- Private sector
- Business owners who perform economic activity
- Non-profit organizations
- Public sector/state institutions
- Health care sector
- Educations sector
- Social welfare sector
- Culture sector
Incentives can be used for:
- Private sector
- the amount of support is determined in accordance with the level of education and the possibility of using the tax relief
- transport costs (e.g. the costs of going to/from work)
- Public sector
- 100% of the cost of traineeship salary
- Trainee education for employees in natural science-informatics and technical fields
- Transport costs
The incentive (or a part of it) must be paid back in case that an employee stops employment or an employer stops paying salary to the employee during the term of the employment contract. In this case, an employer has 15 days to notify HZZ and return a portion of the subsidy.
More information on incentives for private sector is available here.
More information on incentives for public sector is available here.
#5 Subsidies from the City of Rijeka
Deadline: Reopens in September (recurring program)
Available to: Croatian and foreign business owners whose company is registered in the Rijeka area
The city of Rijeka annually offers non-refundable financial support to entrepreneurs living in the area of the city of Rijeka. The aim is to strengthen their appearance at the market and gain additional practical education.
This incentive is intended for:
- Existing small businesses in private ownership with headquarters in Rijeka
- Existing udruga (non-profit organizations) whose aim is to promote certain economic interests of the cluster. A cluster is a group of entrepreneurs who gather within one industrial sector in order to improve the placement of a certain product or service. At least one member of the cluster must have headquarters in Rijeka.
Incentives can be realized for:
- Certification of products and processes
- Building of the brand of products and services
- Encouraging the association/gathering of economic entities
- Implementing IT systems and applications in the business
- Implementing industrial design
- Purchasing and installing machinery and equipment
- Costs of start-up businesses
- Costs of making drafts for project proposals for co-financing from EU funds
- Costs of professional training and development of employees
The costs of start-up businesses include :
- Procurement of equipment, tools, inventory and protective equipment
- Arrangement of the interior of business space
- Development of the business plan
- Consulting services
- Training costs
- Development of the web pages
- Development of the visual identity of the company
A start-up business is considered to be a business that operates for up to 2 years from the day of submitting the request for the subsidy. The amount of the subsidy is 80% of the mentioned costs.
All the details about the previous competition can be found here.
#6 Financial support from Nacionalna zaklada za razvoj civilnog društva
Deadline: Varies.
Available to: Croatian and foreign business owners whose company is registered in Croatia
Nacionalna zaklada za razvoj civilnog društva (National Foundation for Civil Society Development) is a state institution that offers support to civil society organizations through financial support programs, co-financing EU projects, international programs, and EU programs.
Nacionalna zaklada supports programs that promote:
- A non-profit sector
- Cross-sectoral cooperation
- Civil initiatives
- Philanthropy
- Volunteering
- Democratic values of society
- Other similar programs
Active programs of financial support and open applications can be found here.
#7 Subsidies from the city of Split
Deadline: Reopens in March (recurring program)
Available to: Croatian and foreign business owners whose company is registered in the Split area
The city of Split has given non-refundable subsidies to small businesses – craft businesses that are, by the law governing the encouragement of small development economies, defined as small business entities.
Companies that can apply for this incentive are:
- Existing micro and small businesses – craft businesses
One applicant may submit only one application for the specified purposes. Support funds are approved up to 100% of eligible costs or up to a maximum of ~4.000 euro. The purpose of the aid is procurement of machines, tools, informatics and other equipment and accessories necessary for performing the activity for which they are registered, and arrangement of business space located in the area of the city of Split.
All the details of the last application can be found here.
#8 Subsidies from the city of Osijek
Deadline: Reopens in October (recurring program)
Available to: Croatian and foreign business owners whose company is registered in Osijek area
The city of Osijek gives annual subsidies within the program “Opći program poticanja razvoja poduzetništva” (General program for encouraging the development of entrepreneurship).
There are two types of subsidies:
- A measure that supports the development of entrepreneurship
- More information is available here
- A measure that supports the development of entrepreneurship for entrepreneurs from the IT sector
- More information is available here
This incentive is intended for:
- Existing micro, small and middle entrepreneurs
- Existing craft businesses, limited liability companies (d.o.o. and j.d.o.o.), and zadruga
Government subsidy programs available to Croatian entrepreneurs only
Some incentive and loan programs are available exclusively to small businesses owned by Croatian citizens. Below is a list of the programs offered to Croatian business owners only.
#1 Cjeloživotno obrazovanje za obrtništvo (Lifelong learning for craft business)
Deadline: Recurring program (currently closed)
Available to: Croatian business owners whose business is registered in Croatia
Cjeloživotno obrazovanje za obrtništvo (Lifelong learning for craft business) is a state program under the Ministarstvo gospodarstva, poduzetništva i obrta (Ministry of Economy, Entrepreneurship and Crafts). It offers non-refundable incentives to craft businesses with quality employees to strengthen competitiveness and stimulate the productivity and development of the business.
The aim of this program is:
- Acquisition of key skills and competencies for craft business activities
- Encouraging employment and self-employment in craft businesses
Companies that can apply for this incentive are:
- Existing micro, medium, and small companies (craft businesses, limited liability companies (d.o.o. and j.d.o.o.), and zadruga)
- Individuals that don’t have a registered business, but want to open one
Incentives can be used for:
- Education in the field of craft businesses
- Performance of “tied” craft activities
The amount of incentive is up to 80% of financial costs for the following activities/programs:
- A certain professional exam or a mortician exam
- A preparation for the professional exam
- A master’s exam
- A preparation for the master’s exam
- A retraining program from the list of vezani obrt – scholarship costs
- An assistant exam
- A license for performing of the practical part of assistance
More information can be found here.
#2 Potpore za samozapošljavanje HZZ-a (Self-employment incentive from HZZ)
Deadline: Contact HZZ for deadlines
Available to: Unemployed Croatian citizens registered with HZZ and Croatian citizens returning from EU member states whom have been living in Croatia for at least 12 months
HZZ is a state institution that serves as a government unemployment agency also known as Hrvatski zavod za zapošljavanje (Croatian Employment Service). Potpora za samozapošljavanje HZZ-a (Self-employment incentive from HZZ) is intended for Croatian nationals who are recorded as unemployed with HZZ as well as Croatian returnees from EU member states who plan to launch a new business.
This support is financed from the state budget, Europski socijalni fond (European Social Fund), and Incijativa za zapošljavanje mladih (Youth Employment Initiative).
The amount of incentive is determined according to the future activity of the business entity and in accordance with the National Classification of Activities.
Qualifying businesses include zadruga (cooperative), trgovačko društvo (limited liability company – d.o.o. and j.d.o.o.), obrt (craft business) of slobodna profesija (free profession).
This incentive or just a part of it must be paid back if a business closes during the term of support, if financial reports aren’t submitted on time, or in other specific cases.
More information on subsidies for self-employment is available here.
#3 EU fondovi (EU Funds)
Deadline: Varies by application
Available to: Croatian business owners whose business is registered in Croatia
Europski strukturni i investicijski fondovi (European structural and investment funds) offer a large spectrum of support and non-refundable funds for all kinds of projects and businesses.
These funds include financing from Kohezijski fond (Cohesion Fund), Europski socijalni fond (European Social Fund), Europski fond za regionalni razvoj (European Regional Development Fund), Europski poljoprivredni fond za ruralni razvoj (The European Agricultural Fund for Rural Development), and Europski fond za pomorstvo i ribarstvo (European Maritime and Fisheries Fund).
All active applications can be found on the EU funds web site. It is recommended to check this page frequently to see the latest open applications.
#4 Poduzetništvo mladih, žena i početnika (Entrepreneurship of young people, women and beginners)
Deadline: None
Available to: Croatian business owners whose business is registered in Croatia
The aim of the program “Poduzetništvo mladih, žena i početnika” is to encourage the entrepreneurship of young entrepreneurs, start-up entrepreneurs, and women entrepreneurs.
The program offers loans provided by one of these institutions:
- HBOR – Hrvatska banka za obnovu i razvitak (Croatian Bank for Reconstruction and Development)
- Business banks
- Addiko Bank d.d.
- Agram banka d.d.
- Banka Kovanica d.d.
- BKS Bank AG
- Croatia banka d.d.
- Erste & Steiermärkische bank d.d.
- Hrvatska poštanska banka d.d.
- Istarska kreditna banka d.d.
- J&T banka d.d.
- Karlovačka banka d.d.
- Kentbank d.d.
- OTP BANKA d.d.
- Partner banka d.d.
- Podravska banka d.d.
- Privredna banka Zagreb d.d.
- Raiffeisenbank Austria d.d.
- Sberbank d.d.
- Slatinska banka d.d.
- Zagrebačka banka d.d.
The interest rate is 2% per year but it can be reduced in these situations:
- Additional 0,2 percentage points for employment of youth (find more information here)
- Up to 2 percentage points with the subsidy of the county, city, or municipality (find more information here)
- Up to 1 percentage points for loans on the basis of Natural Capital Financing Facility loan line that regards to eco-friendly projects, green entrepreneurship and similar (find more information here)
The aim of this loan is:
- Launching a new business
- Encouraging the employment of new employees
- Modernizing business practices
- Implementing new technologies
- Expanding business capacity
- Developing new products and services
More information, including the range of available funding amounts, is available here and here.
#5 Potpore za samozapošljavanje HZZ-a (Self-employment incentive from HZZ)
Potpora za samozapošljavanje HZZ-a is a state-sponsored incentive offered by HZZ. HZZ is the Croatian employment service, whose full name is “Hrvatski zavod za zapošljavanje”. Under this program, they are offering two separate incentives to encourage entrepreneurship among Croatian citizens.
These two incentives are focused on:
- New business creation by unemployed citizens
- Expansion of existing businesses
We’ll now review each part of the program in detail
a) Potpora za samozapošljavanje (Self-employment incentive)
Deadline: Contact HZZ for deadlines
Available to: Unemployed Croatian citizens registered with HZZ who plan to launch a new business
This measure is valid for 24 months. The amount of incentive varies by business sector according to the Nacionalna klasifikacija djelatnosti (Statistical Classification of Economic Activities).
Business sectors are divided into 2 groups:
#1 Businesses in the following sectors:
- B – Mining (sections 05-09)
- C – Manufacturing industry (sections 10-33)
- D – Electricity, gas, steam and air conditioning supply (section 35)
- E – Water supply, wastewater disposal, waste management, environmental remediation (sections 36-39)
- F – Construction (sections 41-43)
#2 Businesses in the following sectors:
- G – Wholesale and retail trade (section 47.99 is excluded)
- H – Transport and storage
- I – Accommodation and food services (section 56)
- J – Information and communication
- M – Professional, scientific and technical activities (section 69.1 is excluded)
- N – Administrative and support service activities (sections 77, 78, and 79 are excluded)
- P – Education
- Q – Health care and social welfare
- R – Arts, entertainment and recreation (section 93.19 is excluded)
- S – Other service activities (section 94 is excluded)
To get this incentive, a group of people can team up into one business. If several unemployed persons establish and start a new business or continue with the business they have taken over, additional funds may be allocated to the determined amount of support. In the event that more than one person joins a business, only two unemployed persons registered as unemployed by HZZ can receive the financial support which includes fixed and variable costs.
This incentive or just a part of it must be paid back if the business closes during the term of support, if financial reports aren’t submitted on time, or in other similar situations.
More information, including the range of available funding amounts, is available here.
b) Potpora za proširenje poslovanja (Business expansion incentive)
Deadline: Contact HZZ for deadlines
Available to: Croatian citizens who have received the incentive Potpora za samozapošljavanje in previous years (from Section A above)
This measure is valid for 12 months. The amount of the incentive varies by business sector according to the Nacionalna klasifikacija djelatnosti (Statistical Classification of Economic Activities).
Business sectors are divided into 2 groups:
#1 Businesses in the following sections:
- B – Mining (sectors 05-09)
- C – Manufacturing industry (sections 10-33)
- D – Electricity, gas, steam and air conditioning supply (section 35)
- E – Water supply, wastewater disposal, waste management, environmental remediation (sections 36-39)
- F – Construction (sections 41-43)
#2 Businesses in the following sections:
- G – Wholesale and retail trade (section 47.99 is excluded)
- H – Transport and storage
- I – Accommodation and food services (section 56)
- J – Information and communication
- M – Professional, scientific and technical activities (section 69.1 is excluded)
- N – Administrative and support service activities (sections 77, 78, and 79 are excluded)
- P – Education
- Q – Health care and social welfare
- R – Arts, entertainment and recreation (section 93.19 is excluded)
- S – Other service activities (section 94 is excluded)
The incentive is awarded for businesses who are planning to expand their business into the above sectors. Businesses who already perform activities within these sectors are excluded.
This incentive or just a part of it must be paid back if a business closes during the term of support, if financial reports aren’t submitted on time, or in other similar situations.
More information,including the range of available funding amounts, is available here.
c) Biram Hrvatsku – mobilnost radne snage (I choose Croatia – labor mobility)
Deadline: Until the funds are used
Available to: Croatian returnee citizens under the age of 60 from EEA countries
The incentive is an extension of the Croatian Employment Service’s (HZZ) self-employment incentive meant to motivate Croatian citizens to return and start a business and to encourage the population revival of areas with significant emigration.
The incentive is focused on 2 groups:
- Croatian returnee citizens under the age of 60 from EEA countries, regardless of their level of education, who have worked for at least 12 months in the last 24 months in EEA countries or have been involved in regular education and who have registered as unemployed within 30 days from the day of regulated residence and are self-employed through a measure of self-employment support within six months of return / regulated residence
- Those who have received the incentive Potpora za samozapošljavanje in 2022, registered in the area of development index I, II, III and IV, and who changed their place of residence by moving from the area of development index VII and VIII to the area of development index I, II, III and IV, in accordance with the Decision on the classification of local and regional self-government units according to the level of development
The incentive is valid for 24 months.
In case of termination of the contract or if the person moves out of the area before the end of the 24 months, they have to return the paid funds increased by legal default interest.
More information,including the range of available funding amounts, is available here.
#6 Samozapošljavanje nezaposlenih hrvatskih branitelja 2022 (Self-employment of unemployed Croatian veterans 2022)
Deadline: Until the funds are used and no later than October 31, 2022
Available to: Unemployed Croatian citizens registered with HZZ who are veterans of the Croatian War of Independence or are their children
The aim of this state measure is to open new working places within this target audience by giving a subsidy for self-employment.
This incentive is intended for:
- Unemployed veterans of the Croatian War of Independence called “Domovinski rat”
- Unemployed children of deceased of missed veterans of the Croatian War of Independence
- Unemployed children of volunteers of the Croatian War of Independence
- Unemployed children of war invalids of the Croatian War of Independence
The subsidy is non-refundable as long as it is used according to the contract. After the submission of the request and before signing the contract for the subsidy, it is necessary to register a business in Croatia.
The requirements for the business are:
- It is registered as a craft business, limited liability companies (d.o.o. and j.d.o.o.), or free profession
- It is 100% owned by the person who submitted the request or it is in co-ownership of the person who submitted the request (in amount of at least 50% of co-ownership)
More information and the list of required documentation is available here under the section Javni poziv za dodjelu potpora za samozapošljavanje u sklopu EU projekta “Samozapošljavanje hrvatskih branitelja, djece smrtno stradalih ili nestalih hrvatskih branitelja, djece dragovoljaca iz Domovinskog rata i djece hrvatskih ratnih vojnih invalida iz Domovinskog rata”. The whole program,including the range of available funding amounts, is available here.
#7 Stalni sezonac (Permanent seasonal worker)
Deadline: None
Available to: Croatian citizens who have worked continuously for at least 6 months with the same employer and who will work for the same employer for at least another season (at least 6 months)
The aim of the incentive is financial support to seasonal workers during the period when they are not working, in order to provide the necessary workforce to employers as applicants from all industries that have periods of reduced workload during the year due to the seasonal nature of the business. The measure is valid for 6 months.
The amount of the subsidy for the employer covers 100% of the cost of extended pension insurance for the first 3 months and 50% of the cost of extended pension insurance for the next period with a maximum duration of 3 months. For the employee, cash benefits are paid for a maximum of 6 months of extended pension insurance in the amount determined on the basis of the calculation of unemployment benefits. The minimum amount of financial assistance may not be lower than 50% of the amount of the minimum wage reduced by compulsory insurance contributions determined by a special regulation.
The employer may use the measure for the number of permanent seasonal workers corresponding to the number of permanent employees with the same employer.
More information is available here.
#8 Subsidies from the city of Zagreb
Deadline: the program will be applied until December 31, 2023
Available to: Croatian citizens who wish to register a new business in the area of Zagreb
This is a state self-employment subsidy for new entrepreneurs provided by the city of Zagreb.
Qualifying businesses include obrt (craft business) of slobodna profesija (free profession), and trgovačko društvo (limited liability company – d.o.o. and j.d.o.o.).
The subsidy can be used for performing the main activity of the business.
More information about the previous application is available in this document.
Please note: Information provided by Expat in Croatia is only for the purposes of guidance. It does not constitute legal or financial advice in any form. Croatian laws and bureaucratic rules often change, and each personal case is individual, so different rules may apply. For legal advice, contact us to consult with a licensed Croatian lawyer. For financial advice, contact us to consult with a licensed Croatian tax advisor or accountant.
