A short guide to types of business in Croatia
May 23, 2023
You fell in love with the Croatian coastline, extraordinary cuisine and that easy-going way of life? Would you like to start a business in Croatia as a digital nomad? We bring you a step-to-step guide that will help you get familiar with the basics and start your new Croatian life in the best possible way. Let’s kick off with the basics first!
Who is a digital nomad?
According to Croatian law, a digital nomad is a non-EU/EEA/Swiss citizen (this also includes UK citizens post-Brexit) who is employed or performs work through communication technology for a company or his own company that is not registered in the Republic of Croatia and does not perform work or provide services to employers in the Republic of Croatia.
This means that EU, EEA or Swiss nationals do not need to apply for the so-called digital nomad permit or visa. As an EU/EEA citizen, you are entitled to live and work in Croatia on a different basis and we recommend you apply for a temporary residence.
How long may a digital nomad stay in Croatia?
Temporary stay is granted for up to a year and it cannot be extended. After this temporary stay expires, you should leave Croatia for a minimum of 90 days. Six months after the expiration of your prior stay in Croatia as a digital nomad, you can apply for a new stay. In between 90 days and 6 months after your initial stay, you may return as a tourist if you wish to do so.
How do I apply?
You can submit the application online. It will be forwarded to the competent police administration or station, according to the location of your intended stay within Croatia. You should receive an automatic confirmation that your application has been received. Later on, the person responsible for your case will get back to you. They may request further documentation. If you are a third-country national, your application can also be submitted to the competent authority depending on whether you are required to hold a visa to enter Croatia.
May I work for a Croatian company as a digital nomad?
No. According to Croatian law, you may only work for a foreign company or your own company that is not registered in Croatia.
What are the advantages of living in Croatia as a digital nomad?
Moderate climate, good food, friendly people who often speak English and/or other foreign languages (mostly German or Italian). Housing is usually less expensive than in other EU countries. Internet connection is excellent in most urban centers, with good mobile connectivity throughout the country. There are more than 1,000 islands to discover and the continental part of the country has a lot of hidden gems. Most tourists and foreign residents are surprised by the high level of safety. For example, you can take a lonely walk around town at 2 a.m. without worrying.
There must be a catch somewhere. Do I have to pay income tax in Croatia?
Digital nomads working remotely are not subject to Croatian income tax so long as you are not working with the Croatian market and for non-Croatian companies. No catch, after all!
Are my spouse and children free to come with me?
In short, yes. You will need to provide a marriage certificate or prove that you are in a common-law marriage as part of the application for spouses. Furthermore, you should provide birth certificates for your children.
What about bank accounts and paying bills?
You do not need a bank account to live in Croatia as a digital nomad. Still, opening a Croatian bank account may have its advantages. Whether you need it or not usually depends on credit cards you have at your disposal and the type of accommodation you plan during your stay.
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In case you have any further questions or you would like to discuss an assistance package during your stay as a digital nomad, contact us here.
