INVESTOR

Croatia has become a very interesting destination for investors from Eurpoe and United States, mostly in tourist industry. Nowdays, largest investors come from Italy, Germany, Austria and Hungary. Most investors establish a Croatian company here or buy an already existing one. In the past few years the Croatian Parliament has voted out some new law acts and Croatia has carried out means to promote foreign investments in the country. Among others, we point out a few:

1. For investments of over 10 mil. HRK (around 11 mil. NOK), profits are taxed at the rate of 10% but only 10 years after the project has started. A minimum of 30 employees is required within a year after establishing the project.

2. For investments of over 20 mil. HRK (around 22 mil. NOK), profits are taxed at the rate of 3% but only 10 years after the project has started. A minimum of 50 employees is required within a year after establishing the project.

3. For investments of over 60 mil. HRK (around 66 mil. NOK), profits are taxed at the rate of 0% as soon as the project has started. A minimum of 75 employees is required within a year after establishing the project.

4. Total amount of the tax benefit cannot be more than the total amount invested. Croatian Department of Defence has recently decided that all proprties owned by the government along the coastline should be sold to investors. Many of these properties have unique position. If you want more information about this privatization process, which will continue till 2008, we can offer our assistance concerning information about projects that will be offered for sale on daily basis.