Tax relief and economic measures offered by the Croatian government due to COVID-19 & earthquakes

Closed caffe bar in Croatia
Image by Sea Help News

LAST UPDATED: 22/3/2021

The coronavirus epidemic has just begun in Croatia and the biggest impact is expected in the coming weeks. COVID-19 has already left a huge bruise on the Croatian economy, but the full consequences have yet to reveal themselves. Job losses have already begun in the private sector. While public sector jobs are still safe, that may change.

Since the start of this economic crisis, the state has already implemented several tax relief measures to help businesses and individuals get through the impacts of the COVID-19 epidemic. The goal of these measures is to save jobs and balance the already shaken economy.

Before we dive in, the government has set up a web site for all things COVID-19 and Croatia, which you can check out here. The latest updates on absolutely everything will be posted there first.

If you are a business owner and you need help to navigate which tax relief measures you qualify for and how to apply, we can connect you a legal expert who can help you sort it all out. Contact us here.

Most vulnerable business sectors affected by COVID-19

Unfortunately, the economic effects are being felt across the business spectrum. While tourism will be the hardest hit, as products and services move through the supply chain most businesses will feel the hurt of this. The business sectors most impacted by the coronavirus pandemic include:

  • Anything related tourism, which includes:
    • Vacation apartment rentals
    • Hotels
    • Tour agencies
    • Restaurants
    • Caffe bars
  • Catering (Ugostiteljstvo)
  • Entertainment (Zabava)
  • Arts (Umjetnost)
  • Culture (Kultura)
  • Transport (Prijevoz)
  • Public Relations
  • Real estate agencies (Iznajmljivanje)
  • Household appliances (Bijela tehnika )
  • Small businesses (Mali poduzetnici)

Generally speaking, all businesses will be impacted in one way or the other. With highly recommended self-isolation and the state-mandated closing of all non-essential businesses, fewer people are out spending money and there are fewer places to spend money.

Active Croatia tax relief measures

The Croatian government has decided to implement several tax relief measures to help alleviate the financial burden that businesses across the country are feeling.

It is important to note that the available relief measures are changing frequently as the situation develops and as the parliament (Sabor) has time to address and finalize the details of each measure.

This list is constantly changing. We will update it weekly as we get new information. If the program is already accepting applications, we’ve noted that it is “IMPLEMENTED” to the right of the program name.

#1 ZABA will offer special loans for victims of Zagreb earthquake – IMPLEMENTED

Owners of houses and apartments damaged in the Zagreb earthquake can now get a special loan at ZABA (Zagrebačka banka). This loan is for properties in the area of Zagreb, Zagreb county, Krapina-zagorje county, i.e. in places affected by the earthquake.

All information is available at ZABA’s pages under the category “Najčešća pitanja” (FAQ).

If you have any questions, call +385 800 0024 or send an email to [email protected]

#2 Unemployment benefits for fired workers – IMPLEMENTED

Residents who have lost their job can register for unemployment through HZZ via email. They must apply to the closest office to their address. The list of all HZZ’s offices and their email addresses can be found here.

You will need to provide:

  • Filled out application form (Signature not required)
  • Identifikacijski dokument (identification document) – Valid ID card issued in Croatia or another EEA member state or Switzerland, a passport or a residence card for third-country nationals
  • Potvrda o boravištu (Residence certificate) – This is necessary if the person applies somewhere outside the place/address stated in an identification document

#3 Reduction of reserve requirement – IMPLEMENTED

HNB (Croatian National Bank) has reduced the usual reserve requirement rate from 12% to 9%. This will make things easier for the Croatian banking system and help the economy to survive the crisis. By lowering the reserve requirement rate, more money will circulate and the liquidity of the banking system will be increased.

#4 Loans, credit reprogramming and credit deferral – IMPLEMENTED

All companies (d.o.o, j.d.o.o., trade businesses, family farms) whose business is endangered due to the coronavirus crisis can apply for loan and credit measures through FINA to preserve the level of economic activity and liquidity.

Available measures include:

  • Krediti za likvidnost i radni kapital (Liquidity and working capital loans)
  • Reprogram kredita (Credit reprogramming)
  • Odgoda kredita (Credit deferral)
  • Subvencioniranje premije osiguranja – HBOR (Insurance premium subsidies)
  • Loans for entrepreneurs from the field of culture and creative industries with a guarantee of HAMAG BICRO

All requests can be submitted online, which will then be processed and delivered to banks, HBOR or HAMAG BICRO. After they receive the request, they will contact applicants with feedback and next steps.

All queries can be asked via email [email protected]

#5 Micro loans for rural development – IMPLEMENTED

Applications for a loan called “Mikro zajam za ruralni razvoj” are open. Funds are intended for micro and small businesses in agricultural, manufacturing, and forestry sectors.

The loan amount ranges from 1.000 EUR to 25.000 EUR with an interest rate of 0,5%. The repayment period is 3 years.

Detailed program is available here.

#6 Free dopunsko for low income people – IMPLEMENTED

The government has changed Zakon o dobrovoljnom zdravstvenom osiguranju to allow for low income citizens to have free dopunsko health insurance. Citizens whose monthly incomes are lower than 1.563 kuna (on average per family member in a household) don’t have to pay for dopunsko health insurance. For single people, their monthly income must be lower than 2.000 kuna to qualify.

#7 Tourism-specific tax relief – IMPLEMENTED

The Ministry of Tourism has implemented the following benefits in the tourism sector:

  • The validity period for temporary solutions for catering objects, household facilities and family farms have been extended to the end of 2021. This regards objects that already submitted the request for legalization, but they still haven’t received permanent solutions on legalization.
  • Deadlines for renters who want to keep their category label (stars) must submit the request for the new solution:
    • Until April 8 2022 – those who got old solution for category labels before December 31, 2000
    • Until April 8 2023 – those who got old solution for category labels between January 1, 2001 and December 31, 2004
    • Until April 4 2024 – those who got old solution for category labels after December 31, 2004
  • The directive which regulates amounts that can be used for salary of workers in tourism in relation to the total revenues of the company won’t be applied in 2020 and 2021.

#8 HBOR offers cheaper loans for entrepreneurs – IMPLEMENTED

HBOR – Hrvatska banka za obnovu i razvoj (Croatian Bank for Reconstruction and Development) is offering cheaper loans to entrepreneurs due to the coronavirus crisis. This regards micro, small, and middle entrepreneurs, and those who have up to 3000 employees and their business was operating normally before December 31, 2019. Their business must be declared as critical due to the epidemic by FINA.

The credit maximum is the amount of 35 million kuna and interest rates are 0,75% lower than the regular interest rate amounts. The money can be used for employees’ salaries, paying bills, procurement of raw materials, costs towards suppliers, and other business costs.

Loans can be approved via banks that cooperate with HBOR: ZABA, PBZ, Erste, OTP, RBA, HPB, Addiko, and Sperbank.

#9 A building to house earthquake victims planned for Zagreb – IMPLEMENTED

The city of Zagreb plans to build a new building for citizens whose houses/apartments have been ruined in the earthquake. Building will have 270 apartments minimum and will be placed in Podbrežje (a neighborhood behind Siget). The building will have an underground garage, green roof, video surveillance, and air conditioning.

The building could be ready for living within a year and a half to two years (but the exact deadline still isn’t defined). Besides this building, another building for the earthquake victims should also be built.

#10 HBOR extended the moratorium for loans – IMPLEMENTED

HBOR has extended the moratorium of loans:

  • For tourism businesses to June 30, 2021 (for additional 16 months)
  • For clients from other business sectors to September 30, 2020 (for additional 7 months)
  • For clients that have a positive COVID-score determined according to FINA’s calculation through December 31, 2020

Those with these loans will get HBOR’s instructions on the conditions for extending the moratorium and a form to fill out and send back to HBOR. Those who use HBOR’s loans via leasing companies or commercial banks will need to submit the request to companies/banks.

Besides the moratorium, HBOR has enabled the extension of loan deadlines, a grace period and loan repayment period to entrepreneurs. Users are released from paying the usual fees for a period of 6 months, and users from tourist sectors are released for a period of 16 months.

The COVID-score is FINA’s methodology for calculating the level of threat to businesses’ activities/management due to the COVID-19 epidemic. The COVID score is calculated for each request/business according to the available information delivered from that business/company. This score is then used for approving additional financing, postponement or rescheduling of existing credit obligations of vulnerable business entities.

#11 Law on reconstruction of earthquake affected areas – IMPLEMENTED

Zakon o obnovi Zagreba (A law on Zagreb’s earthquake) is now official and passed by the Sabor. From February 6, 2021, the Law is extended to include all earthquake affected areas:

  • The city of Zagreb
  • Krapina-Zagorje county
  • Zagreb county
  • Sisak-Moslavina county
  • Karlovac county

The Law can be found here.

The Ministry of Physical Planning, Construction and State Assets has published a guide that includes a program of measures for reconstruction of buildings damaged by the earthquake. This guide can be found here.

Reconstruction of buildings affected by the earthquake will be financed by:

  • The state (60%)
  • The city of Zagreb, Krapina-Zagorje county, Zagreb county, Sisak-Moslavina county and Karlovac county (20%)
  • Owners of properties – houses and apartments (20%).

The state and the country will cover 100% of financial costs for owners whose income and their partner’s income in the previous and current year is lower than the amount of non-taxable income. The value of their property (other real estate, savings, motor vehicles and vessels) must be lower than 200.000 kuna on the day of the earthquake.

Users of social welfare who have the right to minimum compensation, people with disabilities, and owners and co-owners who live with a person with a disability on the day of the earthquake will also be exempt. If they sell a reconstructed property within a period of 5 years, they will have to return the financial support back to the state or county that invested in reconstruction.

#12 Financial support for families economically endangered with the COVID-19 – IMPLEMENTED

Zaklada Hrvatska za djecu (Foundation Croatia for the children) has opened applications for financial support to families that are living in difficult conditions due to COVID-19. This applies to families who need to buy clothes, hygienic products, food, and other necessities to guarantee a normal life of their children.

The amount of the support is 3.250 kuna for families with one child. The amount is increased by 500 kuna for each child.

To get the support, at least one parent or child must be Croatian citizens and have a residence in Croatia. A parent must be evidenced at the HZZ as an unemployed person and the unemployment must be a consequence of the COVID-19 epidemic.

The request can be submitted:

  • Via email [email protected]
  • Via post or in person at Park Stara Trešnjevka 4, 10 000 Zagreb

More details and the list of documentation are available here.

#13 Salary support to preserve employment (January, February, March 2021) – IMPLEMENTED

HZZ gives salary support to businesses affected by the COVID-19 epidemic and earthquakes.

This measure includes the following groups:

  • Poljoprivreda, šumarstvo i ribarstvo (Agriculture, forestry, and fishing) – some occupations
  • Prijevoz i skladištenje (Transport and storage) – some occupations
  • Activities related to transport
  • Djelatnosti pružanja smještaja te pripreme i usluživanja hrane (Accommodation and food service activities)
  • Administrativne i pomoćne uslužne djelatnosti (Administrative and support service activities) – some activities
  • Umjetnost, zabava i rekreacija (Arts, entertainment and recreation) – some activities
  • Ostale uslužne djelatnosti (Other service activities) – some activities
  • Organizers of cultural, business, and sports events
  • Translation and interpreter activities
  • Izdavačka djelatnost – izdavanje knjiga, periodičnih publikacija i ostale izdavačke djelatnosti (Publishing – publishing of books, periodicals and other publishing activities)
  • All employers who cannot perform activities according to HZJZ restrictions or who are closed by a decision of an epidemiologist
  • All employers whose work is restricted by the HZJZ restrictions or are business-related to as suppliers with employers closed by a decision of HZJZ
  • All employers with 10 or less employees
  • Employers from the earthquake affected areas of Sisak-Moslavina county, Zagreb county and Karlovac county whose business activities are significantly reduced or disabled
  • Sports associations and sports clubs (sports d.o.o.) – for March

The amount of the subsidy is up to 4.000 kuna per employee, depending on the certain case.

Here are the latest deadlines:

  • Requests submitted from January 26, 2021 to February 25, 2021 ensure salary support from January to February.
  • Requests submitted from February 26, 2021 to March 25, 2021 ensure salary support from February.
  • Requests submitted from April 1, 2021 to April 23, 2021 ensure salary support from March.

More information for January and February is available here.
More information for March is available here.

#14 Shortened work weeks and waiting for work (for 2021) – IMPLEMENTED

This subsidy is intended to businesses with a temporary reduction in a scope of work due to COVID-19 crisis.

The amount of the subsidy is up to 3.600 kuna per employee. This measure is valid until December 31, 2021.

Here are the requirements for applying:

  • Businesses with 10-50 employees can get the subsidy if the application is submitted for at least 20% of workers
  • Businesses with 51 and more employees can get the subsidy if the application is submitted for at least 10% of workers
  • Up to 90% of shortened working hours
  • Decrease of revenue of 19% or more in a month of using the subsidy compared to the comparable period (except for activities from C section of NKD)

More information is available here.

#15 Subsidies for entities that employ persons with disabilities (from January to June 2021) – IMPLEMENTED

A new measure to encourage employment of people with disabilities has been implemented.

Entities that can apply are:

  • Shelter workshops
  • Integrative workshops
  • Work units for the employment of people with disabilities

They can apply regardless of the sector in which they operate. They must have a decrease of revenue of at least 50% in a month of using the subsidy.

The subsidy can be requested for employers who were employed until December 31, 2020. Employers should have registered them to HZMO until November 11, 2020.

The amount of the subsidy is up to 4.000 kuna per employee. The measure is active from January 2021 to June 2021.

The documentation needed can be downloaded here.

Applications are submitted online.

More information is available at HZZ.

#16 State support for tourism and sports sector – IMPLEMENTED

The state is giving loans to the tourism and sports sector due to COVID-19 pandemic. Loans are intended to craft resources and investments for the purpose of preparation for the tourist season.

The program is conducted by HBOR (for big businesses) and HAMAG-BICRO (for micro, small and medium businesses) with cooperation of the Ministry of Tourism and Sports.

The application deadline is June 30, 2021.

More information is available here.

#17 Loan benefits for businesses in Sisak-Moslavina county – IMPLEMENTED

HBOR has introduced special benefits to businesses on the territory of Sisak-Moslavina county. The aim is faster restoration of destroyed and damaged facilities and equipment, faster establishment of business and encouragement of economic development.

These benefits regard loan programs including:

  • Private sector investment – The program is available here
  • Public sector investment – The program is available here
  • Working capital – The program is available here

Here are some of the implemented benefits:

  • Interest rates of 0,8% for investments
  • Interest rates of 0,3% for working capital
  • Exemption from fees
  • Reduced requirements for insurance instruments
  • Direct loans for working capital in the amount of 100.000 € and more

More information is available here.

#17 Working capital COVID-19 measure – IMPLEMENTED

This is a temporary measure under the Working capital loan program. It is offered to business with consequences caused by the COVID-19 epidemic. A proof of consequences is a COVID score calculated by FINA.

The loan is intended to:

  • Private sector businesses – companies, crafts businesses, sole traders, family farms, cooperatives and institutions
  • Public sector businesses – companies and other entities (agencies, institutions, etc.) owned or majority-owned by the units of local or regional government and/or the Republic of Croatia.

The application deadline is June 30, 2021 or until the funds are used.

Banks that cooperate with HBOR on this program are: Addiko Bank, Agram banka, BKS Bank AG, Erste & Steiermärkische bank, Hrvatska poštanska banka, Istarska kreditna banka, Kentbank, OTP BANKA., Partner banka, Podravska banka, Privredna banka Zagreb, Raiffeisenbank Austria, Sberbank, Slatinska banka and Zagrebačka banka.

More information is available here.

#18 COVID-19 measure for businesses in wood processing and furniture production industry – IMPLEMENTED

This is a temporary measure under the HBOR’s Working capital loan program intended for businesses in the wood processing and furniture production industry. It is offered to business with consequences caused by the COVID-19 epidemic.

The loan is intended to businesses who perform these activities:

  • Manufacture of wood and of products of wood and cork (except furniture)
  • Manufacture of articles of straw and plaiting materials
  • Manufacture of furniture

Here are the requirements:

  • At least 20% of income must come from foreign or international markets according to the data in the latest official annual financial reports
  • Users must register to FINA portal measures
  • Any value of COVID score calculated by FINA (except for negative value)

The application deadline is June 30, 2021 or until the funds are used.

Banks that cooperate with HBOR on this program are: Addiko Bank, Agram banka, BKS Bank AG, Erste & Steiermärkische bank, Hrvatska poštanska banka, Istarska kreditna banka, Kentbank, OTP BANKA., Partner banka, Podravska banka, Privredna banka Zagreb, Raiffeisenbank Austria, Sberbank, Slatinska banka and Zagrebačka banka.

More information is available here.

#19 Working capital for rural development COVID-19 measure – IMPLEMENTED

HBOR gives loans to farmers, businesses in the agricultural products processing industry and businesses in the forestry industry who have consequences caused by the COVID-19 epidemic.

This implies:

  • Family farms
  • Trade businesses from agricultural industry
  • Companies (including producer organizations)
  • Co-operatives (including producer organizations)

Loan amounts can vary between 190.000 kuna and 1.520.000 kuna.

More information is available here.

Expired tax relief and economic measures

The Croatian government has implement many financial measures, some of which have already expired. Below is a list of the measures that were put in place, but now are no longer available.

#1 Early release of income tax refunds – EXPIRED

Issuance of tax refunds started on June 12, 2020. The Minister of Finance Zdravko Marić stated that tax refunds will be paid to all citizens until June 26, 2020 (but no later than June 30, 2020). Citizens will receive “privremeno porezno rješenje” (a temporary tax solution) at their addresses.

This program is no longer available.

#2 Deferment of public contributions – EXPIRED

This measure includes:

  1. Deferment of paying porez na dohodak (income tax)
  2. Deferment of paying porez na dobit (profit tax)
  3. Deferment of paying doprinosi na plaću (contributions on wages)
    1. Zdravstveno osiguranje (health insurance)
    2. Mirovinsko osiguranje (pension)

Private entrepreneurs, self-employed, and freelancers most affected have the option of delaying payment of these taxes for a period of three months. If the situation worsens, it is possible that the deferment will be extended for another three months.

After this period finishes, the taxes must be paid back in installments in a period of up to 24 months without any fees. Taxpayers who are not able to pay for delayed public contributions after the deferment period expires can submit a request for payment in installments. The installment period can last for up to 24 months and includes no fees.

Your company must not have a debt that is higher than 200 kuna to qualify.

Usually these taxes feed into the budget for local authorities. During the period of deferment, the state will pay these contributions directly to local authorities so that their budget is not impacted.

Business owners whose business is endangered can now send the request for 3-months deferral of paying taxes to Porezna uprava.

The request must be submitted within 5 days after the maturity of deferred contributions (starting from June 24 2020). More information is available here.

Here are instructions on how to apply for this deferment:

Zahtjev za odgodom plaćanja uslijed posebnih okolnosti (A request for deferral of payment due to special circumstances) can be sent via:

  • ePorezna
  • Porezna uprava web form
    • Under the section Odabir teme * choose the option ePorezna – JPPU
    • Under the section Odabir podteme * choose the option Zahtjev za odgodu plaćanja
    • Fill in this form and enclose it under the section Priložene datoteke
    • Note: if you are not able to sign and attach the form, a form without the signature will be accepted as well. Be sure to include your contact information in the request and email if necessary.

Frequently asked questions regarding this measure can be found here.

This program is no longer available.

#3 Exemption for obrt trade companies – EXPIRED

HOK (Croatian Chamber of Trades and Crafts) will exempt all owners of obrt (trades) from paying komorski doprinos (chamber contribution) for the next 3 months, starting from April 1, 2020. You can read more about this measure here.

This program is no longer available.

#4 Elimination of real estate interest – EXPIRED

Ministarstvo državne imovine (Ministry of State Property) has decided that during the coronavirus crisis, they won’t charge statutory interest rates on real estate rents and contracts won’t be terminated if the rent isn’t paid.

The deferment is valid 3 months after the payment deadline.

This program is no longer available.

#5 Salary support to preserve employment for June – EXPIRED

A new HZZ measure to extend support to June for preserving employment for workers has been implemented. The amount of support for full time workers is 4.000 kuna per employee. For those that employ part-time workers, the amount will be proportional.

If your business used the salary support measure for March, April, and May, you must apply again for June. To qualify, entrepreneurs must prove that their company’s revenue for May 2020 decreased by at least 50% compared to May 2019. Companies that have been open for less than 1 year must compare their revenues for May 2020 with February 2020.

All the details are available at HZZ’s pages.

This program is no longer available.

#6 COVID-19 Loan – EXPIRED

Applications for a loan called “COVID-19 zajam” are open. Its aim is to ensure additional liquidity for micro, small and medium businesses. It is funded by the European Regional Development Fund.

The maximum loan amount is 750.000 kuna with an interest rate of 0,25%. Expiration date is up to 6 months, and the repayment deadline is 5 years.

It is intended to help all micro, small and medium businesses EXCEPT:

  • Fisheries, aquaculture, and primary agricultural production
  • Tobacco and distilled alcoholic beverages
  • Manufacture and trade of weapons
  • Casinos
  • Other businesses excluded by the Program’s terms

This program is no longer available.

#7 Elimination of chamber of commerce fees – EXPIRED

HGK (Croatian Chamber of Commerce) has decided to exempt business owners who are not earning an income during the pandemic from paying membership fees for the next 3 months.

This program is no longer available.

#8 Subsidized employee salaries – EXPIRED

A new measure from HZZ has been implemented called “Potpore za očuvanje radnih mjesta u djelatnostima pogođenima koronavirusom (COVID – 19)”. The purpose of this measure is to give financial support to businesses in an effort to preserve jobs.

This financial support will help subsidize employee salaries for up to 3 months starting March 1, 2020. The amount of the subsidy is 3.250 kuna for March per worker, and will increase to 4.000 per month per worker for April and May. The state will also pay the contributions on top of salary, which amounts to approximately 1.460 kuna per worker per month on a salary of 4.000 kuna. The exact amount varies as local taxes vary by jurisdiction.

The government hopes that businesses will pay their employees more in salary than just this subsidized amount. This program is only available to business owners (companies, trades and independent professions) who KEEP their employees. The companies must have been opened before February 29, 2020.

To qualify for this subsidy, you must prove that your income is 20% lower now than it was at the same time last year.

Requests for March can still be submitted by April 4th. The payment will be made by the 10th. This same schedule will apply to May and June as well respectively.

You can submit your application for support here.

This program is no longer available.

#9 Payment of income tax and salary contributions – EXPIRED

Businesses that earn income in amounts of less than 7,5 million kuna per year (93% of companies) and whose income has fallen more than 50% will be exempt from paying tax liabilities (porezne obveze), which includes income taxes (porez na dobit and porez na dohodak) as well as contributions on salary (doprinosi).

The 7% of businesses that earn more than 7,5 million kuna will be exempt from these tax liabilities in proportion with the fall of their incomes for April, May, and June as compared to the same months last year.

For businesses whose income has fallen 20-50%, tax liabilities will be postponed for 24 months. Those whose income has fallen 50-100% will pay proportionally. For example, if income has fallen 75%, they will pay 25% from the total 100%.

For businesses whose income has fallen for less than 20%, it is assumed that they are strong enough to survive the crisis.

Businesses who qualify on this measure must deliver to Porezna uprava:

  1. Documentation that shows proof of decrease in revenues/receipts in relation to the data available to tax administration – More information is available here
  2. Data showing revenues/receipts of taxpayers that aren’t available to tax administration

This program is no longer available.

#10 20.000 kuna per household for earthquake damage – EXPIRED

The government will help finance owners of family houses, apartments, and protected tenants that suffered damage from the earthquake in Zagreb, Zagreb county, and Krapina-Zagorje county. Each household will receive 20.000 kuna. This money is intended for repair of heating, chimneys, boilers and other essentials. The aim is to help citizens return to their homes.

The building manager should apply for this benefit on behalf of buildings. Homeowners should apply for houses.

This program is no longer available.

#11 Postponing payment of PDV – EXPIRED

All companies will have the option to delay payment of PDV until invoices are paid, to remove the burden from the taxpayer. This change in policy is only temporary and thus far, the government has not yet defined an exact timeline for how long they will allow this postponement.

  • For March, the delay expires in July
  • For January to March, the delay expires in July
  • For April, the delay expires in August

This program is no longer available.

#12 Salary support to preserve employment for July and August – EXPIRED

HZZ will continue their salary support in July and August for businesses whose revenue has decreased by at least 60% in June 2020 when compared to June 2019.

This measure includes the following sectors according to the NKD:

  • H – Prijevoz i skladištenje (Transport and storage)
  • I – Djelatnosti pružanja smještaja te pripreme i usluživanja hrane (Accommodation and food service activities)
  • J – Informacije i komunikacije (Information and communication)
  • M – Stručne, znanstvene i tehničke djelatnosti (Professional, scientific and technical activities)
  • N – Administrativne i pomoćne uslužne djelatnosti (Administrative and support service activities)
  • R – Umjetnost, zabava i rekreacija (Arts, entertainment and recreation)
  • S – Ostale uslužne djelatnosti (Other service activities)

Limited liability companies, trade business, self-employed persons and other businesses that pay income tax can apply for this subsidy.

The amount of the subsidy is up to 4.000 kuna per employee.

This program is no longer available.

#13 Shortened work weeks for micro businesses – EXPIRED

The amount of the subsidy is up to 2.000 kuna per employee.

This measure is valid for August 2020.

Here are the requirements for applying:

  • Business must have up to 10 employees (9 or less)
  • The decrease of the revenue for June 2020 and June 2019 must be higher than 50%
  • This is valid for employees who started to work before June 2020

This program is no longer available.

#14 Delay of financial reporting deadlines – EXPIRED

This measure is offered to all businesses.

Here are the deadlines for financial reporting:

  1. June 30, 2020
    • Bilance
    • Račun dobiti i gubitka
    • Dodatnih podaci za statističke i druge potrebe
  2. 8 months from the last day of business year (if the business year is equal to calendar year, the deadline is August 8, 2020)
    • Godišnji financijski izvještaji
    • Godišnje izvješće
    • Revizijsko izvješće
    • Odluka o utvrđivanju GFI
    • Odluka o raspodjeli dobitka ili pokriću gubitka
  1. 10 months from the last day of business year (if the business year is equal to calendar year, the deadline is October 8, 2020)
    • Konsolidirana GFI
    • Konsolidirano godišnje izvješće together with Revizijsko izvješće
  1. June 30, 2020
    • Izjava o neaktivnosti za prethodnu poslovnu godinu

#15 Agricultural subsidies – EXPIRED

To encourage domestic agricultural production, at least 60% of agricultural and food products must be produced or refined in Croatia or come from Croatian businesses going forward.

The government will buy up all surpluses from companies that produce domestic dairy products.

#16 Enforcement procedures will be stopped – EXPIRED

The government will stopped enforcement procedures for citizens who aren’t paying their debts on time.

Zakon o provedbi ovrhe na novčanim sredstvima (Law on Enforcement) has been revised and was published in Narodne Novine.

This change to the law includes:

  • A temporary stop of all enforcement on citizen’s bank accounts
  • A temporary stop of all interest rates

The goal is to help citizens who give a part of their monthly income for enforcement costs. Instead, they can use this extra money for daily living costs.

This program has been extended to October 18, 2020.

#17 Subsidy from the city of Zagreb for earthquake consequences – EXPIRED

The city of Zagreb is giving subsidies for the purchase of materials and construction supplies to help its citizens rebuild their homes damaged by the earthquake.

The amount of the subsidy is up to 50.000 kuna. Requests must be submitted to Gradski ured za gospodarstvo, energetiku i zaštitu okoliša (The City Office for Economy, Energy and Environmental Protection). The deadline is September 15, 2020.

Detailed information and documentation needed can be found at Zagreb’s official pages.

#18 Postponing the seasonal toll increase – EXPIRED

Croatian Minister of Sea, Transport and Infrastructure has announced that the seasonal toll on highways will not increase for the summer. The cost to use the toll highways typically increases for the summer season. There is a possibility that the government will even reduce the toll for Croatian citizens but that has yet to be decided. (If they do, we’ll update this post. Let’s hope they do!)

The hold on the season toll increase is valid for the summer only.

The toll at the Krčki most (Krk’s bridge) is also now abolished.

#19 Ferry prices won’t increase during summer season – EXPIRED

This year, seasonal ferry prices of all Croatian ferry lines won’t be increased due to the coronavirus epidemic. Lower prices should enable citizens to travel to Croatian islands easier and cheaper. The goal is to support the economy and tourism on Croatian islands and the coast.

#20 Shortened work weeks – EXPIRED

The government has announced a new COVID-19 measure that includes implementing part-time working hours. Companies that are having problems in management and a decrease of business activities would get a subsidy for a part of their employee’s salaries resulting in shortened working hours.

The measure will run from June 1, 2020 and until December 31, 2020. Funding is provided from the European commission program. The highest amount of the subsidy will be 2.800 kuna per employee.

Businesses whose income has decreased by more than 20% will be able to apply for this measure. Working hours must be reduced by at least 10%, but no more than 70%. This measure excludes employees who work remotely.

HZZ implemented this measure with the following requirements:

It will be valid from June 1, 2020 to December 31, 2020.

The amount of the subsidy is 2.800 kuna per employee.

The requirements for applying for this measure include:

  • Businesses must have an economic activity and employ 10 or more employees
  • Businesses that have 10-50 employees may apply if the request is submitted for at least 20% of employees
  • Businesses that have 51 and more employees may apply if the request is submitted for at least 10% of employees
  • There is a restriction for users on dividend payment for a period between May 29, 2020 and December 31, 2021

List of required documentation available here.

#21 COVID-19 subsidy for new employees in Split – EXPIRED

The city of Split is offering non-refundable subsidies for existing companies to hire new employees in the area of the city of Split.

Business that can apply are:

  • Craft businesses (obrt)
  • Limited liability companies (j.d.o.o. and d.o.o.)
  • Micro, small, and medium businesses

The amount of the subsidy is 4.000 kuna per new employee. The employment must be contracted for full-time employment for a period of at least 4 months.

The deadline is December 31, 2020 or until the funds are used.

More information and all the documentation needed is available here.

#22 Subsidies for entities that employ persons with disabilities (from July to December) – EXPIRED

A new measure to encourage employment of people with disabilities has been implemented.

Entities that can apply are:

  • Shelter workshops
  • Integrative workshops
  • Work units for the employment of people with disabilities

They can apply regardless of the sector in which they operate. This means that they can come both from the private and public sector.

The amount of the subsidy is up to 4.000 kuna per employee. The measure is active from July 2020 to December 2020.

The documentation needed can be downloaded here.

Applications are submitted online.

More information is available at HZZ.

#23 Loan guarantee program for entrepreneurs from the creative industries and culture – EXPIRED

Entrepreneurs from the field of creative industries and culture can submit a request to banks for loans with a guarantee from the state. The program is intended for micro, small and middle entrepreneurs.

The maximum amount of the loan guarantee is 800.000 EUR.

The deadline is December 31, 2020.

More details are available here.

#24 Tourism-specific tax relief – EXPIRED

The Ministry of Tourism has implemented the following benefits in the tourism sector:

  1. Exemption from paying tourist fees for private renters

Persons who offer catering services in the household and family farms are exempt from paying 50% of tourist fee in 2020, which they are obligated to pay for the main bed and the accommodation unit in camps or objects arranged in the “robinson” style. They are also exempt from paying tourist fees for additional beds for the year of 2020.

  1. Exemption from paying the variable part of the concession fee for 2019 for those who use concession on tourist land in camps

The variable part of the concession fee won’t be charged according to the prescribed model. Instead it will be the amount of 1 kuna.

There is an exemption from paying the fixed part of the concession fee for 2020 for those who use concession on tourist land in camps.

Paying the fixed part of the concession fee is delayed for 3 months – from August 31 to November 30, 2020.

  1. Exemption from paying the variable part of the concession fee for 2019 for using tourist lands in ownership of JLS (jedinice lokalne samouprave = local authority units)

The variable part of the concession fee won’t be charged according to the prescribed model. Instead it will be the amount of 1 kuna.

There is an exemption from paying the fixed part of the concession fee for 2020 for using tourist lands in ownership of JLS.

Paying the fixed part of the concession fee is delayed for 3 months – from August 31 to November 30, 2020.

#25 Salary support to preserve employment (September to December) – EXPIRED

HZZ will continue their salary support from September to December for businesses whose revenue has decreased by at least 60%.

This measure includes the following sectors according to the NKD:

  • A – Poljoprivreda, šumarstvo i ribarstvo (Agriculture, forestry, and fishing) – some occupations
  • H – Prijevoz i skladištenje (Transport and storage) – some occupations
  • I – Djelatnosti pružanja smještaja te pripreme i usluživanja hrane (Accommodation and food service activities)
  • J – Informacije i komunikacije (Information and communication)
  • M – Stručne, znanstvene i tehničke djelatnosti (Professional, scientific and technical activities)
  • N – Administrativne i pomoćne uslužne djelatnosti (Administrative and support service activities)
  • R – Umjetnost, zabava i rekreacija (Arts, entertainment and recreation)
  • S – Ostale uslužne djelatnosti (Other service activities)
  • Organizers of cultural, business, and sports events
  • Translation and interpreter activities
  • All employers defined by the decision of the HZJZ Headquarters or by a decision of an epidemiologist
  • All employer with 10 or less employees

Limited liability companies, trade business, self-employed persons and other businesses that pay income tax can apply for this subsidy.

The amount of the subsidy is up to 4.000 kuna per employee.

Here are the latest deadlines:

  • Requests submitted from September 15, 2020 to October 15, 2020 ensure salary support from September to December.
  • Requests submitted from October 26, 2020 to November 25, 2020 ensure salary support from October to December.
  • Requests submitted from November 26, 2020 to December 25, 2020 ensure salary support for November and December.
  • Requests submitted from December 26, 2020 to January 25, 2021 ensure salary support for December.

#26 Subsidy for micro businesses (September – December) – EXPIRED

The amount of the subsidy is up to 2.000 kuna per employee. This measure is valid from September to December for employees who started to work before August 2020.

Here are the requirements for applying:

  • Business must have up to 10 employees (9 or less)
  • The decrease of the revenue must be higher than 50%

Here are the deadlines:

  • Requests submitted from September 15, 2020 to October 15, 2020 ensure salary support from September to December.
  • Requests submitted from October 16, 2020 to November 15, 2020 ensure salary support from October to December.
  • Requests submitted from November 16, 2020 to December 15, 2020 ensure salary support for November and December.
  • Requests submitted from December 16, 2020 to January 15, 2021 ensure salary support for December.

Are you a business owner and need help figuring out which measures you qualify for?

As a business owner myself, I know how hard it can be to navigate the system. The Croatian government has implemented some real valuable tax relief measures and subsidies that can help your business during this time if you’re revenue has been impacted by the pandemic. You shouldn’t have to miss out because you don’t know the language or what to do.

We can connect you with a legal expert who can advise you on which measures you qualify and how to apply. Contact us using the below form and get help now.

    We will only email you once per week. The newsletter includes a wrap up of our latest posts, a Croatian word and phrase of the week, curated actionable Croatian news plus freebies just for our subscribers.

 

Has your business been affected by COVID-19? What do you want the government to do to help your business survive?

Sharing is Caring:

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to the Expat in Croatia Newsletter and get a FREE GUIDE to the 9 Tips for Battling Croatia's Bureaucracy.