The incentive measures regulated by the Act on Investment Promotion and Development of Investment Climate


–       incentives for micro enterprises,

–       profit tax incentives,

–       aid to cover eligible costs of the job creation linked to an investment project;

–       aid to cover eligible costs of training linked to an investment project;

–       incentive measures for:

  • development-innovation activities,
  • business support activities, and
  • high value added service activities,

–       incentive measures for capital expenditures of investment project,

–       incentives for labour intensive investment projects.



Placing of goods in free zones and removal of goods from free zones


Both Community and non-Community goods may be placed in a free zone.


There shall be no limit to the length of time goods may remain in free zones, but for certain goods which are covered by the common agricultural policy, specific time limits may be imposed in accordance with the committee procedure.


Goods placed into a free zone can also be used for supply of vessels in international traffic.


Excise goods under a duty suspension arrangement can be placed in free zone if the free zone user is  the holder of the authorization issued by the competent customs authorities.


Goods entering a free zone need not be presented to the customs authorities, nor a customs declaration has to be lodged. Goods shall be presented to the customs authorities and undergo the prescribed customs formalities where:

–       they have been placed under a customs procedure which is discharged when they enter a free zone (however, where the customs procedure in question permits exemption from the obligation to present goods, such presentation shall not be required),

–       they enter a free zone directly from outside the customs territory of the Community,

–       they have been placed in a free zone or free warehouse on the basis of a decision to grant repayment or remission of import duties,

–       they qualify for the measures referred to in Article 166 paragraph 1 (b) of the Customs Code (Community goods covered by the common agricultural policy).


Non-Community goods placed in a free zone may, while they remain in a free zone:

–       undergo the usual forms of handling referred to in Article 109 (1) of the Customs Code without authorization,

–       be placed under one of the customs procedures (be released for free circulation, be placed under the inward processing procedure, be placed under the procedure for processing under customs control, be placed under the temporary importation procedure),

–       be abandoned or destroyed in accordance with Article 182 of the Customs Code.


Goods leaving a free zone may be:

–       exported or re-exported from the customs territory of the Community, or

–       brought into another part of the customs territory of the Community.



Exemption from value added tax (PDV)


–       exemptions for intra-Community supply of goods (Article 41)

–       exemptions for intra-Community acquisitions of goods (Article 42)

–       exemptions on importation (Article 44)

–       exemptions on exportation (Article 45)

–       exemption related to international transport (Article 47)

–       exemptions related to certain transactions treated as exports (Article 48)

–       exemptions for the supply of services by intermediaries (Article 49)

–       exemptions for transactions relating to international trade (Articles 50-56)

Benefits in payment transactions and foreign exchange operation


–       payments for import of goods and services allowed in foreign cash and checks

–       residents may receive payments arising from transactions with non-residents in domestic cash, foreign cash and checks

–       unrestricted single or several related collection transactions up to 15.000 euro or 105.000 kuna, in the following cases:

  • sales of goods and provision of services
  • real estate sales
  • receiving loans
  • sales of transferable securities and shares


–       no obligatory due dates in abroad operations, regardless of whether it is cash or non-cash transaction,

–       allowed transactions between residents in foreign means of payment:

  • purchase and sale of the certain goods and services between the zone user and the resident outside the zone
  • intermediation in foreign trade
  • current transactions in foreign trade between the agent and another resident
  • in inward processing procedures
  • payment transactions between the branch of a foreign founder and another resident, under certain conditions
  • purchase and sale of goods from a customs warehouse type D