Why is it worth investing in Croatia in 2021?

CROATIA: News on 2021 incentives

Croatia has introduced many incentives for foreign investors. Therefore, Croatia can be the right country to open a company. For example, tax incentives allow partial or total exemption from income tax for a period of up to 10 years.

Incentives for new employments (new jobs opening) can amount up to € 4,500 for one new employment and tax exemptions for the employee training costs can be approved up to 80%.

Many tax incentives for micro-entrepreneurs were introduced in 2021. Entrepreneurs who have less than 10 employees and an annual turnover of less than 2 million kuna (approximately 270,000 euros) are considered micro-entrepreneurs. For investments of at least 50,000.00 euros, the application of the income tax of 10% is granted for the maximum period of 5 years from the start of the investment. This incentive is granted on condition that at least 3 new jobs are created within one year from the start of the investment or renovation project.

To find out more, click on: https://www.societaallestero.com/en/tax-and-company-consulting/  Tax benefits are also granted:

– reduction of income taxes to 10% for a maximum period of 10 years for companies with investment projects exceeding € 1 million. With the condition of the creation of at least 5 jobs.

– for investments between 1 and 3 million euros, the income tax will be reduced to 5% for a maximum period of 10 years. With the condition of the creation of at least 10 jobs.

– for investments exceeding 3 million euros and the creation of at least 15 new jobs, full relief from income tax (0%) is envisaged for a period of 10 years.

In 2021, Croatia approved non-repayable investment incentives worth more than € 5 million, on the condition that at least 50 new jobs related to the investment project are created within 3 years from the start of the investment.

These are just some of the 2021 incentives to better address the crisis that began with the Covid-19 pandemic.

To find out more about the establishment of a SRL in Croatia, write to info@taxofia.com.