Amongst all the countries in Europe, Croatia, officially the Republic of Croatia, is a captivating nation located at the crossroads of Central and Southeast Europe, bordering the Adriatic Sea. It is renowned for its stunning coastline, over a thousand islands, rich historical heritage, and diverse landscapes ranging from mountains to national parks. The capital of Croatia is Zagreb, which is its largest and most populous city, serving as the country’s main economic, cultural, and political hub. According to the World Bank, Croatia is classified as a High-Income Economy, and as a full member of the European Union since 2013 and the Eurozone since 2023, it is well-integrated into the bloc’s economy. The currency of Croatia is the Euro (EUR), which it adopted on January 1, 2023. The value of 1 Euro is approximately 89.85 Indian Rupees as of today’s exchange rates (June 2025). The population of Croatia is estimated to be around 3.8 million in 2024. Its neighbouring countries are Slovenia and Hungary to the north, Serbia to the east, Bosnia and Herzegovina and Montenegro to the south and southeast. The official language of the country is Croatian. The majority of the Croatian population practices Roman Catholicism, with smaller communities of Orthodox Christians and other faiths. Currently, Croatia has several international airports, including Zagreb Airport (Franjo Tuđman Airport), Split Airport, Dubrovnik Airport, and Zadar Airport, all crucial for its booming tourism sector and international connectivity. As Croatia borders the Adriatic Sea, it has several key commercial seaports, including Rijeka, Split, and Ploče, which are vital for facilitating international trade and serve as important maritime gateways for Central and Southeast Europe.

 

The corporate income tax rate in Croatia is generally 18%. However, for companies with annual revenues of up to EUR 1 million, a reduced rate of 10% applies, providing a significant incentive for small and medium-sized enterprises. Furthermore, Croatia offers various investment incentives for strategic projects, including tax breaks, grants, and subsidies for job creation, particularly in less developed regions or specific priority sectors. As an EU member, Croatia benefits from EU structural and investment funds, which can co-finance projects.

 

Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in Croatia is facilitated by its EU and Eurozone membership, which ensures a harmonized legal framework and ease of doing business within the single market.

 

The Croatian Investment and Competitiveness Agency (ACI) is the primary government body promoting and assisting foreign investors. A foreign investor who is planning to start his business in Croatia can form various company types, such as a Limited Liability Company (d.o.o.), a Simple Limited Liability Company (j.d.o.o. – for smaller businesses), or a Joint Stock Company (d.d.). A Limited Liability Company (d.o.o.) is the most common and flexible form, allowing 100% foreign ownership and requiring a relatively low minimum share capital (EUR 2,500).

In case an investor is planning to establish a d.o.o. in Croatia or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Croatia and we will also guide you about how to follow the procedure while formulating your company in Croatia.

Types of Business which can be started in Croatia:

Tourism & Hospitality: The dominant sector, with immense potential for further growth. Opportunities are vast in developing luxury hotels, resorts, marinas, specialized tourism (e.g., medical, eco, adventure, cultural), and expanding services in the shoulder and off-seasons.

 

Information & Communication Technologies (ICT): Croatia has a rapidly growing IT sector, driven by a skilled workforce and a vibrant startup ecosystem. Opportunities exist in software development, cybersecurity, fintech, artificial intelligence, and IT outsourcing.

 

Manufacturing: This sector is diverse, including automotive components, pharmaceuticals, machinery, shipbuilding, and food processing. Opportunities lie in precision manufacturing, leveraging competitive costs for export-oriented production, and modernizing existing industries.

 

Renewable Energy: With abundant sun, wind, and hydropower potential, Croatia is investing heavily in green energy. Opportunities are significant in developing solar farms, wind parks, biomass projects, and energy efficiency solutions, often supported by EU funds.

 

Agriculture & Food Processing: Croatia’s diverse climate and fertile land support various agricultural products. Opportunities exist in modernizing farming practices, organic agriculture, and value-added food processing (e.g., olive oil, wine, dairy, meat products, processed fruits and vegetables) for domestic and export markets.

 

Infrastructure & Construction: Ongoing investments in transport networks (roads, railways, ports), energy infrastructure, and urban development projects, often co-financed by EU funds, create strong demand for construction, engineering, and related services.

 

Logistics & Transportation: Croatia’s strategic location along the Adriatic Sea, with well-developed ports like Rijeka and Ploče, positions it as a key transit hub for Central and Southeast Europe. Opportunities exist in developing logistics centers, warehousing, and intermodal transport solutions.

 

Healthcare & Life Sciences: Opportunities in specialized medical clinics, medical tourism, and pharmaceutical research and development, leveraging a skilled medical workforce and potential for regional healthcare hubs.

 

Advantages of Starting Business in Croatia:

 

Full EU & Eurozone Membership: Provides seamless access to the vast EU single market (450 million consumers), eliminates currency risks, and ensures a stable, transparent business environment.

 

Strategic Geographic Location: Acts as a gateway to Central Europe, the Balkans, and the Mediterranean, with well-developed maritime and land transport routes.

 

Highly Developed Tourism: A globally recognized tourist destination, offering direct and indirect business opportunities across many sectors.

 

Competitive Operating Costs: Offers relatively lower labor costs and overheads compared to Western European countries, while maintaining EU standards.

Skilled Workforce: A well-educated and multilingual workforce, particularly proficient in English and German.

 

Investment Incentives: Government support and EU funds are available for strategic investment projects, job creation, and regional development.

 

Business Opportunities for Indians in Croatia:

 

There are excellent business opportunities in Croatia for new investors who are planning to start their business abroad. As a new Eurozone member with a strong commitment to economic development, Croatia presents an attractive proposition. Indian investors, with their strengths in IT and digital transformation, pharmaceuticals, automotive component manufacturing, renewable energy, and infrastructure development, can find significant avenues for investment. Croatia can also serve as a gateway for Indian businesses to access the broader European market. There is also potential for collaboration in tourism, particularly in promoting Croatia as a high-value destination.

 

Imports & Exports:

Many goods are imported and exported from Croatia. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

 

Major items which are exported from Croatia to India:

 

Electrical, electronic equipment

Machinery, nuclear reactors, boilers

Organic chemicals

Wood and articles of wood

Pulp of wood, fibrous cellulosic material

Pharmaceutical products (smaller scale)

Major items which are imported in Croatia from India:

Pharmaceutical products

Organic chemicals

Electrical machinery and equipment

Ceramic products

Iron and steel

Coffee, tea, mate and spices

Articles of apparel and textiles

 

Manufacturing:

Opportunities in manufacturing are growing, especially in sectors like automotive components (parts for major European car manufacturers), pharmaceuticals, and machinery. Croatia’s accession to the Eurozone and EU provides a stable environment for export-oriented manufacturing, leveraging competitive labor costs and skilled workers.

 

Mining:

The mining sector in Croatia is primarily focused on small-scale extraction of non-metallic minerals such as limestone, sand, gravel, and clay, used largely in construction. There are also some oil and gas reserves, but the sector is not a major area for new foreign investment compared to others.

Major Indian companies which are currently working in Croatia:

While specific large Indian manufacturing setups in Croatia might be limited compared to some other EU countries, Indian businesses have a growing presence through trade and other forms of engagement:

Pharmaceutical Companies: Several Indian pharmaceutical companies maintain a presence through distribution and sales networks.

 

 

IT Services: Indian IT firms may have partnerships or smaller operations, engaging with Croatia’s growing tech sector.

 

Trade: Various Indian companies are active in bilateral trade, importing Croatian products and exporting Indian goods.

 

 

GDP = $105.7 billion (nominal, 2025 est.)

GDP Growth = 2.2% (2025 est.)

Ease of doing business rank = 51 (2020 – Note: The World Bank discontinued this report, but this is the last available ranking.)

GDP per Capita = $25,674 (nominal, 2025 est.)

 

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