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Employer of Record Croatia
Hire staff and expand your business in Croatia with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Croatia designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Croatia. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Croatia takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Croatia
A Brief Guide to Croatia
Croatia is a country in Southeastern Europe, known for its rich history, diverse culture, and stunning landscapes. It has a parliamentary system of government and is a member of the European Union, the United Nations, and various international organizations. The nation has a growing economy driven by various industries.
| Category | Information |
| Location: | Southeastern Europe |
| Capital: | Zagreb |
| Official Language: | Croatian |
| Area: | 56,594 square kilometers |
| Population: | Approximately 4 million |
| Currency: | Euro (EUR) |
| Major Cities: | Split, Rijeka, Osijek, Zadar |
| GDP (2020): | $60.4 billion USD |
| Human Development Index (HDI): | 0.851 (very high) |
| Major Industries: | Tourism, shipping, agriculture, and information technology |
Business Culture
Business Culture in Croatia
Business culture in Croatia values professionalism, relationship-building, and respect for hierarchy. Punctuality is important, as well as appropriate attire and courtesy. Decisions are often made by top-level executives, and personal connections play a significant role. Engaging in small talk and socializing is common before discussing business matters.
Being well-prepared and demonstrating expertise is crucial when conducting business in Croatia. A proper work-life balance is appreciated, and adhering to business etiquette, such as exchanging business cards and using proper titles, is expected.
Payroll and Taxes
Payroll and Taxes in Croatia
There is no statutory requirement to pay a 13/14th month in Croatia.
Employee Taxation
Income tax rates in Croatia are progressive:
| Gross Annual Income (EUR) | Tax Rate (%) |
|---|---|
| Up to 47,780.21 | 20% |
| Over 47,780.21 | 30% |
Employer Taxation
Employer costs in Croatia are relatively simple. Employers are responsible for:
| Employer Costs in Croatia | Approximate % of Gross Salary |
Social Security Contributions | 16.5% |
Employment Law
Employment Law in Croatia
Employment Contracts: In Croatia, employment contracts should be written, outlining essential details such as employment duration, working hours, salary, and termination notice periods.
Working Hours: The standard maximum working time in Croatia is 40 hours per week or 8 hours per day. Overtime work is regulated, with compensation for extra hours.
Leave: Employees in Croatia are entitled to various types of leave, including paid annual leave (minimum of 20 working days per year), maternity leave, paternity leave, sick leave, and family care leave.
Overtime: In Croatia, overtime occurs when an employee works beyond their standard working hours, as specified in their employment contract. Employers are required to compensate for this additional time, typically by offering extra pay or compensatory time off.
Termination: Termination of employment in Croatia requires proper notice, which varies depending on the length of employment. Unjustified termination can lead to claims for damages or reinstatement.
Employees Rights: Employees in Croatia have various rights, such as the right to equal treatment, protection against discrimination, and freedom of association. Regulations address working conditions, workplace safety, and employee representation.
Public Holidays
Croatia Public Holidays
| New Year’s Day: | 1st January |
| Epiphany: | 6th January |
| Easter Monday: | Varies |
| Labor Day: | 1st May |
| Corpus Christi: | Varies |
| Anti-Fascist Struggle Day: | 22nd June |
| Statehood Day: | 25th June |
| Victory and Homeland Thanksgiving Day: | 5th August |
| Assumption of Mary: | 15th August |
| Independence Day: | 8th October |
| All Saints’ Day: | 1st November |
| Christmas Day: | 25th December |
| St. Stephen’s Day: | 26th December |
Pension and Healthcare
Croatia Pensions
Retirement Plans In Croatia, there is a mandatory state pension system funded by social security contributions from both employees and employers. The contribution rates, as a percentage of an employee’s gross salary, are as follows:
- Employees: 0-5% for pension insurance
- Employers: 15% -20% for pension insurance
Healthcare in Croatia
Croatia has a public healthcare system that provides basic medical services to its residents. The system is funded through social health insurance contributions from employees and employers, as well as government subsidies and general tax revenues.
IMMIGRATION
Work Permits in Croatia
In Croatia, immigration is a regulated process, just like in any other country. To immigrate, you’ll generally need to apply for a specific type of visa or residency permit based on your purpose for moving, such as work, study, or family reunification.
Work visas typically require a job offer from a Croatian employer, while student visas require enrollment in a recognized educational institution. Family reunification visas may be available to those who have family members living in Croatia.
To obtain a residency permit, you’ll need to meet certain criteria, such as providing proof of sufficient financial resources, having valid health insurance, and passing a background check. Since the official language in Croatia is Croatian, learning the language may be helpful for navigating the immigration process and integrating into the local community.
Once you’ve obtained a residency permit, you’ll need to renew it periodically and adhere to the specific conditions tied to your permit. If you’re interested in becoming a permanent resident or even a citizen, you’ll have to follow additional steps and meet certain requirements, such as living in Croatia for a specified number of years.
Wondering if expanding
in Croatia is right for you?
Read on or speak to a member of our team now
The Benefits
Croatia Employer of Record Benefits
When you choose Agility EOR to expand in Croatia, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Croatia so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Croatian authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Croatia payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.