Saturday, 8 May 2021

New Destination for Digital Nomads in Split: SPAlato Spa

May 8, 2021 - Digital nomads in Split can now work at SPAlato Spa in the Radisson Blu Hotel, with free Wi-Fi and a relaxation zone. You may also want to book a treatment to destress your mind and body while you’re there…

The digital nomad lifestyle can sometimes be rough on my posture and my brainwaves. I live on a computer and some days it feels like I’m becoming a piece of the furniture, hunched over a keyboard with a never-ending to-do list. Recently, I had enough. I desperately needed a massage to release my tight muscles and clear my head. I decided to check out the spa at the Radisson Blu hotel near my apartment. I went there last year just before the pandemic shut things down and I enjoyed a terrific treatment with a stunning view of the Adriatic Sea.

02CBurkhardt_IMG_4141.jpeg

SPAlato Spa opened in a completely renovated space on May 1, including treatment rooms, pools, a sundeck, relaxation zone, fitness center, and a yoga studio.

Cool vibe

A year ago the spa was under renovation and this time I was glad to see the new space. I went on a Sunday morning and the first thing I noticed was the cool ambiance with jazz music and a lounge vibe. I loved it immediately. It reminded me of places I used to go back home to settle in and relax with the Sunday New York Times and a pot of coffee.

03CBurkhardt_IMG_4143.jpeg

A lounge area includes a retail display for purchasing organic products used during treatments.

I scheduled a facial and a massage and I arrived early to swim and sweat in the sauna before my treatments. The spa was airy and light, which I like, and the design was minimal yet elegant. I was delighted to find several different “zones” where I could hang out, including comfy couches near the pool and an outdoor sunbathing terrace. Later I found out that the designated Relaxation Zone has Wi-Fi, is kid-free, and it’s where I can set-up and work for a day. Wait a minute, what?

04CBurkhardt_IMG_4150.jpeg

Digital nomads can set up shop in the Relaxation Zone, Wi-Fi included, and alternate between work and spa amenities.

No more WFH (work from home)

The concept was mind-blowing. The SPAlato (a cute name playing up Spa with the old Italian name for Split) could replace my dining table office and allow me to take breaks from the computer in any number of spots:  indoor and outdoor pools, gym, sauna, steam room, whirlpool, cold and hot plunge pools, or a yoga studio. And there’s another bonus for this spa and wellness devotee—I could tackle the enticing list of treatments.

05CBurkhardt_IMG_4151.jpeg

Brand new saunas are fresh and let you build up heat before jumping in the pool.

TCM (traditional Chinese massage) with a certified Chinese therapist; Power of the Sea—a combination of marine salt scrub, aromatherapy with local essential oils, a bath, full body massage, body wrap, and finisher with local immortelle oil; and other treatments promised to restore my body and mind energies.

It seems decadent, and perhaps dangerous in regard to keeping work deadlines, but my body would be so grateful and my mind would be so happy.

07CBurkhardt_IMG_4155.jpeg

The indoor pool is surrounded by glass, giving a sense of being outdoors and close to nature.

Treatments

My therapist Doris asked what kind of massage I like and I said sports or deep-tissue. Every therapist I’ve ever said that to has interpreted it differently. For all the good massages, I’ve also endured being rubbed with inexperienced, weak hands and pounded with killer claws. Not this time. Doris not only had the right touch, she knew how to apply pressure in the correct way to get my muscles flowing. Yesss!

08CBurkhardt_IMG_4159.jpeg

Treatment rooms are comfortable and calming, an ideal environment to relax.

She also did my facial and explained the steps and the products used, including my particular skin type needs. Small details in both treatments made all the difference, starting with the bowl of water and eucalyptus oil she held under my nose before we began. Oh my, I inhaled deeply. I’ve had enough treatments over the years to know that every place is different and charming in its own way. That also sets a benchmark for quality and this place rates high on my list.

09CBurkhardt_IMG_4170.jpeg

Thalgo and Elemis spa products are organic and made with marine ingredients for maximum effectiveness.

Mediterranean experience

I spent the rest of my time on the upper dining terrace, looking over the sea and eating a fresh salad. It couldn’t have been nicer. I can’t believe I’m contemplating my future workspace in a spa; how cool would it be to be the first digital nomad to claim a co-working seat at SPAlato.

10CBurkhardt_IMG_4174.jpeg

An upstairs dining terrace offers Mediterranean food and drinks in a casual, elegant atmosphere.

Learn more about SPAlato on Radisson Blu’s website.

Learn more at TCN’s Digital Nomads channel.

Story and photographs ©2021, Cyndie Burkhardt. https://photo-diaries.com

Friday, 23 April 2021

Kristina Grbavac Talks Taxation of Digital Nomads in Croatia

April 23, 2021 - TCN meets the director of the Taxation Services Department at KPMG Croatia, Kristina Grbavac, to discuss the taxation of digital nomads in Croatia.

Croatian tax and immigration legislation were amended in 2020 to welcome digital nomads to Croatia: a digital nomad visa was introduced and income based on the acquired status of a digital nomad became tax-exempt and relieved of the tax reporting obligation in Croatia.

Even though it might look like all tax matters are covered with this exemption, there are still some open questions to be considered by digital nomads.  

Kristina Grbavac, director of the Taxation Services Department at KPMG Croatia, discusses the taxation of digital nomads in Croatia.

In which country is a digital nomad a tax resident?

The question of tax residency is important because the country of tax residency has the right to tax worldwide income, while another country has the right to tax income sourced in that country only.  

Therefore, digital nomads should first check and regulate their tax (non)residency status in their home country and country from which they are coming to Croatia (if different from their home country).   

Based on the Croatian tax legislation, a tax resident is a physical person who has a permanent residence or habitual abode in Croatia, which amongst other includes the following:

  • owning or holding a home or flat in Croatia for at least 183 days;
  • permanent stay in Croatia for at least 183 days; and
  • other factors like his/her family residing in Croatia, not being tax resident elsewhere, etc.

Since there are no specific provisions in the Croatian legislation on the tax residency of digital nomads, the above rules for tax residency would apply to digital nomads too.

Based on the digital nomad visa, digital nomads can stay in Croatia for a year, which is more than 183 days mentioned above; therefore, due to their stay in Croatia, they might become Croatian tax residents.  

Should a digital nomad be a tax resident of a country with which Croatia has an effective Double Taxation Agreement and at the same time be a Croatian tax resident, the provisions of the relevant Double Taxation Agreement should be reviewed in order to determine the overall residency.

Therefore, there is no unique answer on the tax residency of digital nomads, but to conclude on someone’s tax residency, his/her specific personal facts should be considered.

If digital nomads would become Croatian tax residents, Croatia would have the right to tax their worldwide income.  

Is other income earned by a digital nomad taxable in Croatia?

A digital nomad who only earns income based on which he/she acquired the status of a digital nomad in Croatia, will neither pay tax in Croatia nor will have tax reporting obligations in Croatia.

Furthermore, a digital nomad who would be tax non-resident in Croatia, and his/her only income source in Croatia would be income based on his/her digital nomad status, will also have no tax payment or reporting obligations in Croatia.

However, Croatian tax resident digital nomads who earn other types of income will be taxable in Croatia on these other types of income. Other types of income include all different sorts of income, and the most common examples are dividend income, capital gains, and rental income.  

For example, if a Croatian tax resident digital nomad while staying and working in Croatia as a digital nomad receives dividends from shares in non-Croatian companies (e.g. US or German companies) or rental income for renting an apartment to someone else while he/she is in Croatia, that income should be reported to the Croatian tax authorities and tax paid in Croatia. 

Therefore, digital nomads should carefully consider whether they earn any other types of income that could be taxable in Croatia.

Is a Croatian digital nomad subject to tax in some other country?

Even though a digital nomad's income is tax-exempt in Croatia, it does not mean digital nomads do not have to report their income to their home country or some other country in which they resided before.

Therefore, besides checking their tax status in Croatia, digital nomads should carefully check if they have any tax liabilities in the countries they lived before.

Will the work of a digital nomad in Croatia create any tax risk for his/her own company or his/her employer?

This is the question most individuals who work remotely are not aware of, and most individual travellers think that their mobility impacts their personal taxation only.

However, working abroad might create some tax obligations and risks for employers or companies owned by international travellers.

For example and in a very simplified manner, if a digital nomad in Croatia manages his own company’s business from Croatia, his/her company might become taxable on its profits in Croatia.  

Furthermore, digital nomads who work for their foreign employers from Croatia might create a taxable presence (so-called taxable permanent establishment) in Croatia for their employers. This would depend on various factors, including their job description, activities, authority to conclude contracts or negotiate their terms, etc. 

A taxable permanent establishment is not a term specific for Croatia, but is common in most countries; however, awareness of international travellers on this matter is low and, therefore, many times is the question of the taxable permanent establishment not examined.

Any changes in the tax legislation expected in the future?

Significant changes to the legislation have already been made, which answered the main questions. 

However, the idea behind the digital nomad's initiative was to make the move of digital nomads to Croatia easier, to remove administration obstacles and tax costs that could refrain them from moving to Croatia, and there are still many open questions related to their taxation.

Therefore, it is important to resolve the remaining matters too to allow digital nomads to move to Croatia without being concerned about their taxation.

In the light of that, further changes to the Croatian tax legislation would be expected.

For more on digital nomads in Croatia, follow the dedicated TCN section.

Tuesday, 23 February 2021

Marvie Living & Coworking: Split 4-star Hotel Launches Year-Round Offer for Digital Nomads

February 23, 2021 - Marvie Living & Coworking - a 4-star hotel located in Split launches an attractive year-round, long-term stay offer for digital nomads!

Marvie Hotel & Health opened its doors four years ago in one of the coziest seaside neighborhoods in the city of Split, Croatia. In recent years, the hotel has been trending among international guests due to its excellent location, comfortable rooms, the spectacular panoramic views of the nearby archipelago enjoyed from its rooftop pool, as well as the hotel’s wide array of health services provided in close collaboration with partners. Marvie has now taken a further step, becoming the first Croatian hotel to create an offer completely tailored to the needs of remote workers, widely known as digital nomads.

Marvie_Living_Coworking_drone_photo_1.jpg

While embracing modern trends and following the belief that a global world that knows no boundaries can blend living, remote working, and traveling, Marvie has now launched an attractive, new offer, described by the name Marvie Living & Coworking and represented by the Long-term Stay Package.

Marvie_Living_Coworking_photo_by_Damira_KalajßiÜ_5.jpg

Damira Kalajzic

An affordable long-term stay option, 28 days or longer, is now available at Marvie’s all year round, even during the summer season - and with a 50% discount. In addition, guests interested in long-term stays in Split, Croatia, now have the option of contacting Marvie Hotel & Health via a 15-minute free Zoom or Google Meets chat.

Marvie_Living_Coworking_photo_by_Damira_KalajßiÜ_4.jpg

With the aim of creating a stimulating and productive living and working environment for hotel guests who are looking for long-term accommodation in Croatia, Marvie Hotel, within its Long-term Stay Package, offers Deluxe rooms with sea views, work desk, coworking space with 200 Mbps high-speed Internet, a projector and flipchart, as well as unlimited access to an indoor pool, jacuzzi, sauna, gym and relax zone.

Marvie_Living_Coworking_photo_7.jpg

Marvie’s coworking space, which will be complete with ergonomic chairs and new desks in March, is open to both hotel guests and all other digital nomads in town. Other hotel spaces, which include Mareo Bar, Da’Mar restaurant, the lobby, as well as the rooftop poolside, can be used as alternative working spaces, where guests can work or exchange ideas and knowledge.

Marvie_Living_Coworking_photo_8.jpg

“Our mission is to actively participate and contribute to the design of a brand-new tourist product, which is changing the paradigm of traveling, remote working, and living. We are thrilled to witness more and more institutions begin to recognize the potential of this trend, as well as the founding of Digital Nomad Association Croatia, whose founders we are in contact with and who have helped us create a new product”, said Diana Rubić, general manager of Marvie Hotel & Health.  

Marvie_Living_Coworking_photo_by_Damira_KalajßiÜ_1.jpg

Damira Kalajzic

Marvie Hotel & Health is also popular for its health services such as dermatological treatments, non-invasive methods for facial and body rejuvenation, physical medicine and rehabilitation, dental services, and more. With the aim of providing opportunities for a longer stay and affordable prices, Marvie’s has also launched two carefully created 14-day health packages - The Physiotherapy and Nutrition Package. Marvie_Living_Coworking_wellness_photo.jpg

Digital nomads now have the opportunity to live in a sea-view 4-star hotel in Split at affordable prices and enjoy the many benefits that only Marvie Hotel & Health can offer in one place.

For more information on the prices and benefits of the Long-term Stay Package visit Marvie’s website, as well as a new blog section where you will be able to find topics related to digital nomads and Split with its surroundings - an ideal destination for working and living. 

You can read more in English at  the link: https://marviehotel.com/long-stay and follow Marvie's blog: https://marviehotel.com/blog

To read more about digital nomads in Croatia, follow TCN's dedicated page.

Tuesday, 23 February 2021

Croatia Publishes Updated Digital Nomad Visa Requirements

February the 23rd, 2021 - The Croatian Ministry of the Interior (MUP) has published an updated overview of Croatia's digital nomad visa requirements.

The much talked about Croatian digital nomad visa is finally here as Croatia finally opens its arms to the idea, and MUP have clarified some updates to the digital nomad visa requirements.

Temporary residence for digital nomads in Croatia

A digital nomad in Croatia is a third-country national who is employed or is otherwise performing work through communication technology for a company or indeed for their own company that is not registered in the Republic of Croatia. This means that the individual isn't and cannot perform work or provide services to employers headquartered/registered here in the Republic of Croatia.

Temporary residence for this purpose is granted for up to one year (in some cases for less than a year), and cannot be extended. After the expiration of the first six months of the first issued temporary residence document, a request for re-regulation of residence for a digital nomad may be submitted.

Digital nomads who have been granted temporary residence in the Republic of Croatia may be joined in the Republic of Croatia by members of their immediate family (temporary residence for the purpose of family reunification).

Let's delve deeper into MUP's recently updated Croatian digital nomad visa requirements.

The submission of an application for temporary residence as a digital nomad in Croatia

The application can be submitted in two ways, depending on whether or not the individual seeking residence as a digital nomad requires a visa to enter Croatia or not.

If a visa is needed for entry:

In this case, a request for the Croatian ''digital nomad visa'' must be submitted at the appropriate Embassy/Consulate of the Republic of Croatia abroad (a list can be found on the website of the Ministry of Foreign and European Affairs/MVEP). Prior contact with the competent embassy/consulate is advised due to possible limitations in the work being carried out as result of the spread of the novel coronavirus and by epidemiological measures relating to it.

If no visa is required for entry:

In this case, the same request must be submitted either to the appropriate embassy/consulate of the Republic of Croatia (as detailed above) or to the competent administrative police station according to the place of residence of the individual seeking this permit (a list of administrative police stations by location across the country can be found here). Please note that due to the same situation with the pandemic described above, processing times may be longer and certain functions may not be running as normal.

How to make an application and what sort of documentation you'll need

A copy of the documentation you're required to submit must be submitted in either Croatian or English.

1. Fill in Form 1a and attach it to the request/application:

2. You'll need a copy of your valid travel document (the validity period of the travel document must be three months longer than the period of validity of your intended stay).

3. Proof of health insurance (travel or private health insurance which must have coverage for the territory of the Republic of Croatia).

4. Proof of your purpose for submitting the request.

This can be: (an employment contract or other document proving that your work is performed through communication technology for a foreign employer or for your own company that is not registered in the Republic of Croatia), such as a statement from your employer or from you (as proof that the business being done is through communication technology) and a contract of employment or proof of the performance of work for a foreign employer, or a copy of the registration of your own company and proof that you perform all of the stated tasks through your own company.

5. Proof of sufficient funds to cover your stay in Croatia.

This can be: a bank account statement or proof of regular income, both will be enough to be recognised and accepted as evidence. Pursuant to the Decree on the Method of Calculation and Amount of Maintenance Allowances for Third-Country Nationals in the Republic of Croatia (Official Gazette 14/21), which entered into force on the 13th of February 2021, a third-country national regulating their temporary residence in Croatia as a digital nomad must have funds in the amount of at least 2.5 average monthly net salary sums for the previous year based on officially published data from the Central Bureau of Statistics (CES), and for each additional family member, or formal or informal life partner, that amount is increased by an additional 10 percent of the average monthly net paid salaries. At the moment, the amount of funds required on a monthly basis is a minimum of 16,142.5 kuna, or if your intended period of stay in the Republic of Croatia is 12 months, it is necessary to prove that you have funds in the amount of a minimum of 193,710.00 kuna..

6. Proof that you haven't been convicted of any criminal offenses in your home country or the country in which you resided for more than a year immediately before your arrival in the Republic of Croatia. (Information on the processes for the legalisation of such documents can be found here).

7. You must state your intended Croatian address.

When submitting the application, you'll be required to state the address of your place of residence or intended stay in Croatia on the form you'll be given to complete. This is important for the purpose of determining the administrative police station that will deal with your application. If your first application is submitted and you don't yet have an address in Croatia, it's been made possible for you to state your temporary address (hostel/hotel if a reservation is booked/confirmed) as the address of your intended stay for the purpose of application processing.

What about after the delivery of MUP's notice approving your temporary residence as a digital nomad in Croatia?

If you require a visa in order to enter the country:

Once you've been informed that your temporary residence as a digital nomad has been granted, you will need to contact the embassy/consulate again to obtain an entry visa for Croatia or a biometric residence permit (please inform yourself in advance about whether or not this is a possibility at your embassy/consulate).

You can also fill in the visa application form online.

All other information on visas (application, required documentation, etc.) can be found on the website of the Ministry of Foreign and European Affairs/MVEP.

If you don't require an entry visa for Croatia:

Third-country nationals who don't need an entry visa for the Republic of Croatia don't need to take any of the aforementioned steps and may enter Croatia without a visa in accordance with the provisions of the Law on Foreigners (often referred to as the Aliens Act).

An important note: A third-country national must register their residence with the administrative police station responsible for their place/area of stay within thirty days of being granted a temporary residence permit (in this case a digital nomad permit), to ensure that their temporary residence is not revoked.

On arrival in Croatia - Residence registration and the issuance of a biometric residence permit

The registration of residence:

As a third-country national, you're obliged to register your place of stay/residence and an address within three days of entering the Republic of Croatia at the administrative police station responsible for your area of stay.

You'll need to apply using Form 8a with the attachment of a lease agreement or a statement of the property owner confirming the situation.

The issuance of a biometric residence permit:

Third-country nationals who don't need a visa to enter Croatia, as well as those who entered the Republic of Croatia on the basis of needing an entry visa, are required to obtain a residence permit which is a biometric document (it is mandatory to attach photographs and provide biometric data) immediately upon arrival at the competent administrative police station.

What are the costs?

If the application is submitted to a consulate/embassy outside of Croatia, it is paid for at the time of application:

420.00 kuna for a temporary residence permit

460.00 kuna for a visa (with the additional payment of a service fee if the visa application is submitted through the VFS visa centre)

310.00 kuna for the biometric residence permit form (check the possibility of obtaining it at the embassy/consulate)

If the application is submitted in Croatia at an administrative police station, the associated fees are paid after your stay is approved by MUP:

350.00 kuna for a temporary residence permit

70.00 kuna as an administrative fee for issuing a biometric residence permit

240.00 kuna for a biometric residence permit form

Payment of all of the admin fees if the application is submitted at a Croatian administrative police station

Admin fees for temporary stay: 

Via internet banking, the payment of administrative fees for the issuance of temporary residence (350 kuna) are to be made directly to the Croatian state budget, more precisely to the IBAN of the state budget, the details of which are below:

HR1210010051863000160, model HR64, reference number: 5002-713-OIB (if you have an OIB (personal ID number/tax number), then that is entered).

For those who haven't been assigned an OIB, the reference number is: 5002-713-number of your valid travel document.

(An important note: a maximum of 10 numbers, and if the numeric label initially contains zeros (0), they are not to be entered. Do not enter letters, slashes, periods, commas, etc.).
For example, let's say the number of the travel document/identity card of a foreign citizen is AZ004586, then the reference number is: 5002-713-4586 (without any letters and zeros, and with a maximum of ten numbers).

The fees for a biometric residence permit:

Via Internet banking, the payment of a fee in the amount of 240 kuna for the preparation of a biometric residence permit will be made directly to the Croatian state budget, more precisely to the IBAN of the state budget, the details of which are below:

HR1210010051863000160, model HR65, reference number: 7005-485-OIB (enter the OIB only if you've been given one).

For those who have not been assigned an OIB, the reference number is: 7005-485-RKP-case number.

Through Internet banking, the payment of an admin fee in the amount of 70 kuna for the preparation of a biometric residence permit will be made, yet again, to the Croatian state budget, more precisely to the IBAN of the state budget, the details of which are below:

HR1210010051863000160, model HR64, reference number: 5002-713-OIB (again, you obviously only enter your OIB if you have one).

For those who do not have an OIB, the reference number is: 5002-713-number of your valid travel document.

(The same important note written above about a maximum of 10 numbers and no letters, slashes, commas etc applies here, too.)

For more on digital nomads in Croatia, as well as any more digital nomad visa requirement updates, follow TCN's dedicated section.

Saturday, 20 February 2021

Health Insurance for Digital Nomads in Croatia is Now Enabled

February 20, 2021 – Digital nomads in Croatia have the right to health care, as the issue of health insurance for digital nomads in Croatia is now regulated.

As HRturizam reports, on Thursday, the Government sent amendments to the Law on Compulsory Health Insurance and Health Care of Foreigners in the Republic of Croatia to the parliamentary procedure. They are harmonized with the Aliens Act to regulate the manner of exercising the right to health care for digital nomads. The amendments thus enable the realization of the health care right for digital nomads.

By the official definition, a digital nomad is a third-country national who is employed or doing business through communication technology for a company or their own company that is not registered in Croatia and does not do business or provide services to employers in Croatia and has been granted temporary residence in Croatia.

As Health Minister Vili Beroš explained, a digital nomad is not obliged to apply for compulsory health insurance. Still, they are obliged to bear the costs of using health care in a health institution, i.e., with a private practice health worker or other health care provider in Croatia.

By amending the Law on Foreigners, Croatia has introduced the concept of digital nomads who now have preferential tax treatment. Legal changes regulate the tax exemption for receipts of digital nomads – foreigners who work online from Croatia for other countries' employers.

The new Law on Foreigners for Digital Nomads prescribes a tax exemption for their income based on the status thus acquired. All this to facilitate their decision to choose Croatia as a place of residence and work.

This way of regulating their stay in Croatia assumes that digital nomads will spend their earnings here while living in our country and thus positively impact the domestic economy.

Temporary residence is granted for up to one year (possibly shorter). However, the temporary stay cannot be extended. A request for re-regulation of the digital nomad's stay may be submitted six months after the digital nomad's temporary stay expiration.

As Jan de Jong, the initiator of the introduction of visas for digital nomads, has repeatedly pointed out, when a digital nomad would spend at least 10,000 kunas a month on living in Croatia, which is more than realistic, for about 50,000 potential digital nomads (as many as there are in Bali), that would mean a revenue of about 500 million kunas a month into the Croatian economy.

At the moment, the publication of the online system for electronic submission of applications for digital nomads is still pending and will be done soon. But before that, the Ministry of the Interior announced the procedure for obtaining visas for digital nomads.

To read more about digital nomads in Croatia, follow TCN's dedicated page.

Friday, 19 February 2021

People also ask Google: What is Croatia Famous For?

February 19, 2021 – What is Croatia Famous For?

People outside of the country really want to know more about Croatia. They search for answers online.

Here, we'll try to answer the popular search terms “What is Croatia famous for?” and “What is Croatia known for?”

Most of the people looking for answers to these questions have never been to Croatia. They may have been prompted to ask because they're planning to visit Croatia, they want to come to Croatia, or because they heard about Croatia on the news or from a friend.

What Croatia is known for depends on your perspective. People who live in the country sometimes have a very different view of what Croatia is famous for than the rest of the world. And, after visiting Croatia, people very often leave with a very different opinion of what Croatia is known for than before they came. That's because Croatia is a wonderful country, full of surprises and secrets to discover. And, it's because internet searches don't reveal everything. Luckily, you have Total Croatia News to do that for you.

What is Croatia known for?

1) Holidays


adriatic-sea-4393182_1920.jpg

Croatia is best known globally as a tourist destination. Catching sight of pictures of the country online is enough to make almost anyone want to come. If you've heard about it from a friend, seen the country used in a TV show like Game of Thrones or Succession, or watched a travel show, your mind will be made up. Following such prompts, it's common for Croatia to move to first place on your bucket list. If it's not already, it should be, There are lots of reasons why Croatia is best known for holidays (vacations).

a) Islands


Mljet-NP-Panorama-Cijelog-Otoka-small-1536x771aaaakjdsfkjasfbkajs.jpg

What is Croatia famous for? Islands © Mljet National Park

Within Croatia's tourist offer, its most famous aspect is its islands. Croatia has over a thousand islands - 1246 when you include islets. 48 Croatian islands are inhabited year-round, but many more come to life over the warmer months. Sailing in Croatia is one of the best ways to see the islands, and if you're looking for a place for sailing in the Mediterranean, Croatia is the best choice because of its wealth of islands. These days, existing images of Croatia's islands have been joined by a lot more aerial photography and, when people see these, they instantly fall in love.

b) Beaches


Golden_Cape.jpg
What is Croatia famous for? Its holidays are famous for their beaches © Szabolcs Emich

Croatia has 5835 kilometres of coastline on the Adriatic Sea - 1,777.3 kilometres of coast on the mainland, and a further 4,058 kilometres of coast around its islands and islets. The Croatian coast is the most indented of the entire Mediterranean. This repeated advance and retreat into the Adriatic forms a landscape littered with exciting, spectacular peninsulas, quiet, hidden bays, and some of the best beaches in the world. There are so many beaches in Croatia, you can find a spot to suit everyone. On the island of Pag and in the Zadar region, you'll find beaches full of young people where the party never stops. Elsewhere, romantic and elegant seafood restaurants hug the shoreline. Beach bars can range from ultra-luxurious to basic and cheap. The beaches themselves can be popular and full of people, facilities, excitement and water sports, or they can be remote, idyllic, and near-deserted, accessible only by boat. Sand, pebble, and stone all line the perfectly crystal-clear seas which are the common feature shared by all.

c) Dubrovnik


Ivankovoooooooooooooo.jpg
What is Croatia famous for? Dubrovnik © Ivan Ivanković

As a backdrop to Game Of Thrones and movies from franchises like Star Wars and James Bond, Dubrovnik is known all over the world. Everybody wants to see it in person, and that's why it's an essential stop-off for so many huge cruise ships in warmer months. But, Dubrovnik's fame did not begin with the invention of film and television. The city was an autonomous city-state for long periods of time in history, and Dubrovnik was known all over Europe – the famous walls which surround the city of Dubrovnik are a testament to a desire to maintain its independent standing for centuries while living in the shadow of expanding, ambitious empires.

d) Heritage


amphitheater-261115_1920.jpg
What is Croatia famous for? Heritage. Pula amphitheatre is one of the best-preserved Roman amphitheatres in the world

The walled city of Dubrovnik is just the tip of the iceberg when it comes to Croatia's rich architectural and ancient heritage. Diocletian's Palace in Split is a UNESCO World Heritage Site and still the living, breathing centre of life in the city (that people still live within it and it is not preserved in aspic is one of its most charming features and no small reason for its excellent preservation).

Having existed on the line of European defence against the Ottoman empire, Croatia also has many incredible fortresses and castles. The fortresses of Sibenik are well worth seeing if you're visiting Sibenik-Knin County and its excellent coast. A small number of Croatia's best castles exist on the coast, Rijeka's Trsat and Nova Kraljevica Castle is nearby Bakar being two of them. Most of Croatia's best and prettiest castles are actually located in its continental regions which, compared to the coast, remain largely undiscovered by most international tourists.

crosssjhstfhd.jpg
Many spectacular castles in the country's continental regions are, for these parts, what is Croatia famous for

Pula amphitheatre (sometimes referred to as Pula Arena) is one of the largest and best-preserved Roman amphitheatres in the world. A spectacular sight year-round, like Diocletian's Palace, it remains a living part of the city's life, famously hosting an international film festival, concerts by orchestras, opera stars, and famous rock and pop musicians. Over recent years, it has also played a part in the city's music festivals.

e) Music Festivals


imagechriskws.jpg
What is Croatia famous for? Music festivals © Khris Cowley

There is a very good reason why the city of Pula leapt massively up the list of most-researched online Croatian destinations over the last decade. It played host to two of the country's most famous international music festivals. Though the music at some of these can be quite niche, the global attention they have brought to the country is simply massive. Clever modern branding and marketing by the experienced international operators who host their festivals in Croatia mean that millions of young people all over the world have seen videos, photos and reviews of Croatia music festivals, each of them set within a spectacular backdrop of seaside Croatia.

f) Plitvice Lakes and natural heritage


plitwitz-67175_1280.jpg
What is Croatia Famous For? Plitvice Lakes, national parks and natural heritage

Known for its chain of 16 terraced lakes and gushing waterfalls, Plitvice Lakes is the oldest, biggest and most famous National Park in Croatia. Everybody wants to see it. And many do. But that's not the be-all and end-all of Croatia's stunning natural beauty. Within the country's diverse topography, you'll find 7 further National Parks and 12 Nature Parks which can be mountain terrain, an archipelago of islands, or vibrant wetlands.

2) Football


Modrić_World_Cup_2018.jpg
What is Croatia famous for? Football. Seen here, Luka Modric at the 2018 World Cup © Светлана Бекетова

The glittering international careers of Croatian footballers Luka Modrić, Ivan Rakitić, Ivan Perišić, Mario Mandžukić, and others have in recent years advertised Croatia as a factory of top-flight footballing talent. They helped put Croatia football on the map with fans of European football. Football fans in Croatia have a very different perception of just how famous Croatian football is to everyone else in the world. If you talk to a Croatian fan about football, it's almost guaranteed that they will remind you of a time (perhaps before either of you were born) when their local or national team beat your local or national team in football. 99% of people will have no idea what they are talking about. The past occasions which prompt this parochial pride pale into insignificance against the Croatian National Football Team's achievement in reaching the World Cup Final of 2018. This monumental occasion brought the eyes of the world on Croatia, extending way beyond the vision of regular football fans. Subsequently, the internet exploded with people asking “Where is Croatia?”

Sports in general are what is Croatia known for

143299314_166758951912742_8157734674376052357_n.jpg

Croatians are enthusiastic about sports and engage in a wide number of them. The difference in perception between how Croats view the fame this gets them and the reality within the rest of the world is simply huge. Rowing, basketball, wrestling, mixed martial arts, tennis, handball, boxing, waterpolo, ice hockey, skiing and volleyball are just some of the sports in which Croatia has enthusiastically supported individuals and local and national teams. Some of these are regarded as minority sports even in other countries that also pursue them. Croatians don't understand this part. If you say to a Croatian “What is handball? I never heard of that,” they will look at you like you are crazy or of below-average intelligence.

3) Zagreb


zagreb-2133033_1920.jpg
What is Croatia famous for? Its capital city Zagreb is becoming increasingly better known

Over relatively recent years, the Croatian capital has skyrocketed in terms of fame and visitor numbers. Tens of thousands of people from all over the world now come to visit Zagreb each year. Its massive new success can be partly attributed to the rising popularity of international tourism in some areas of Asia (and Zagreb being used as a setting for some television programmes made in some Asian countries) and the massive success of Zagreb's Advent which, after consecutively attaining the title of Best European Christmas Market three times in a row, has become famous throughout the continent and further still. Zagreb's fame is not however restricted to tourism. Zagreb is known for its incredible Austro-Hungarian architecture, its Upper Town (Gornji Grad) and the buildings there, an array of museums and city centre parks and as home to world-famous education and scientific institutions, like to Ruder Boskovic Institute and the Faculty of Economics, University of Zagreb.

4) Olive oil


olive-oil-1596639_1280.jpg
What is Croatia famous for? Olive oil

Croatian olive oil is the best in the world. Don't just take out word for it! Even the experts say so. In 2020, leading guide Flos Olei voted Istria in northwest Croatia as the world's best olive oil growing region for a sixth consecutive year. Olive oil production is an ancient endeavour in Croatia, and over hundreds of years, the trees have matured, and the growers learned everything there is to know. Olive oil is made throughout a much wider area of Croatia than just Istria, and local differences in climate, variety, and soil all impact the flavour of the oils produced. Croatian has no less than five different olive oils protected at a European level under the designation of their place of origin. These and many other Croatian olive oils are distinct and are among the best you're ever likely to try.

5) There was a war here


AnyConv.com__1440px-Yugoslaw_Army_destroyed_this_Hotel_in_Kupari_Croatia.jpg
What is Croatia famous for? A relatively recent war left its mark on the country © Modzzak

Under rights granted to the republics of the former Yugoslavia and with a strong mandate from the Croatian people, gained across two national referendums, Croatia declared its independence from Yugoslavia in 1991. Yugoslavia was a multi-ethnic country, with each republic containing a mixture of different ethnicities and indeed many families which themselves were the product of mixed ethnicities. Ethnic tensions and the rise of strong nationalist political voices in each of the former republics and within certain regions of these countries lead to a situation where war became inevitable. The worst of the fighting was suffered within Croatia, Bosnia, and Herzegovina and the part of southern Serbia which is now Kosovo. The Croatian War of Independence (known locally as the Homeland War) lasted from 1991 – 1995. The Yugoslav wars of which it was a major part is regarded as the deadliest conflict in Europe since World War II. In many cases, this war pitted neighbouring houses or neighbouring villages against each other and sometimes members of the same family could be found on opposing sides. The war left huge damage on the country and its infrastructure, some of which is still visible. Worse still, it had a much greater physical and psychological impact on the population. Some people in Croatia today would rather not talk about the war and would prefer to instead talk about the country's present and future. For other people in Croatia, the war remains something of an obsession. If you are curious about the Croatian War of Independence, it is not advisable to bring it up in conversation when you visit the country unless you know the person you are speaking with extremely well. It is a sensitive subject for many and can unnecessarily provoke strong emotions and painful memories. There are many resources online where you can instead read all about the war, there are good documentary series about it on Youtube and there are several museums in Croatia where you can go and learn more, in Vukovar, Karlovac and in Zagreb.

6) Wine


plenkovicwino.jpg
What is Croatia famous for? Its wine is some of the best you'll ever try © Plenković

Croatia is not really that famous for wine. Well, not as famous as it should be because Croatia makes some of the greatest wine on the planet. Croatian wine is only really famous to those who have tried it after visiting – you'll never forget it! A growing cabal of Croatian wine enthusiasts are trying their best internationally to spread the word about Croatian wine. However, there isn't really that much space in Croatia to make all the wine it needs to supply its homegrown demands and a greatly increased export market. Therefore, export prices of Croatian wine are quite high and even when it does reach foreign shores, these prices ensure its appreciation only by a select few. There's a popular saying locally that goes something like this “We have enough for ourselves and our guests”. Nevertheless, Croatian wine is frequently awarded at the most prestigious international competitions and expos. White wine, red wine, sparkling wine, cuvee (mixed) and rose wine are all made here and Croatia truly excels at making each. You can find different kinds of grape grown and wine produced in the different regions of Croatia. The best way to learn about Croatian wine is to ask someone who really knows about wine or simply come to Croatia to try it. Or, perhaps better still, don't do that and then there will be more for those of us who live here. Cheers!

7) Croatian produce


_DSC5692_DxOdrnipops.jpg
Drniš prsut
is protected at a European level, one of 32 products currently protected in this way and therefore what is Croatia famous for © Tourist Board of Drniš

To date, 32 agricultural and food products from Croatia have attained protection at a European level. These range from different prosciuttos, olive oils and Dalmatian bacon, to pastries and pastas, honey, cheese, turkeys, lamb, cabbages, mandarins, salt, sausages, potatoes and something called Meso 'z tiblice (which took a friend from the region where it's made three days to fully research so he could explain it to me at the levels necessary to write an informed article about it – so, you can research that one online). While some prosciutto, bacon, sausages, olive oil and wine do make it out of Croatia, much of these are snaffled up by a discerning few of those-in-the-know. The rest, you will only really be able to try if you visit. And, there are many other items of Croatian produce which are known which you can also try while here

Truffles


paukkkk.jpg
What is Croatia known for? Truffles © Donatella Paukovic

By weight, one of the most expensive delicacies in the world, truffles are a famous part of the cuisine within some regions of Croatia. They feature heavily in the menu of Istria, which is well known as a region in which both white and black truffles are found and then added to food, oils or other products. Truth be told, this isn't a black and white issue - there are a great number of different types of truffle and they can be found over many different regions in Croatia, including around Zagreb and in Zagreb County. But, you'll need to see a man about a dog if you want to find them yourself.

Vegeta


1376x860-9ef61aac-4c1b-11ea-85b3-92f307bc0925feewedshg.png
What is Croatia known for? Vegeta

Having celebrated its 60th birthday in 2019, the cooking condiment Vegeta is exported and known in many other countries, particularly Croatia's close neighbours. It is popularly put into soups and stews to give them more flavour. Among its ingredients are small pieces of dehydrated vegetables like carrot, parsnip, onion, celery, plus spices, salt and herbs like parsley.

Chocolate


AlexandeSteinsfhagdba.jpg
What is Croatia known for? Chocolate is a big export© Alexander Stein

Though making chocolate is only around a century old in Croatia, Croatian chocolate has grown to become one of its leading manufactured food exports. Some of the most popular bars may be a little heavy on sugar and low on cocoa for more discerning tastes. But, lots of others really like it.

Beer


untitled_panorama-1beerystu.jpg
What is Croatia famous for? Its beer is becoming more famous internationally © The Garden Brewery

The exploding growth of the Croatian craft ale scene over the last 10 years is something that is likely to have passed you by, unless you're a regular visitor to the country, a beer buff or both. Most of the producers are quite small and production not great enough to make a big splash on international markets. However, even within a craft-flooded current market, Croatian beer is becoming more widely known – in one poll, the Zagreb-based Garden Brewery was in 2020 voted Europe's Best Brewery for the second consecutive year

8) Innovation


nikola-tesla-hrvatska_600_804yes.jpg
What is Croatia famous for? Pioneers, inventors and innovation. Nikola Tesla was born here

From the parachute, fingerprinting, the retractable pen and the tungsten filament electric light-bulb to the torpedo, modern seismology, the World Health Oganisation and the cravat (a necktie, and the precursor to the tie worn by many today), Croatia has gifted many innovations to the world. The list of pioneers - scientists, artists, researchers and inventors - who were born here throughout history is long. And, although innovation is not currently regarded as experiencing a golden period in Croatia, there are still some Croatian innovators whose impact is felt globally, such as electric hypercar maker Mate Rimac.

9) Being poor


skint.jpg
What is Croatia famous for? Being poor. Yikes!

The minimum wage in Croatia is among the lowest in Europe. Croatian language media is constantly filled with stories about corruption. There is a huge state apparatus in which key (if not most) positions are regarded to be politically or personally-motivated appointments. This leads to a lack of opportunity for Croatia's highly educated young people. Many emigrate for better pay and better opportunities. This leads to a brain drain and affects the country's demographics considerably (if it usually the best educated, the ablest and the youngest Croatian adults who emigrate). Many of those who stay are influenced by the stories of widespread corruption and lack of opportunity and are therefore lethargic in their work, leading to a lack of productivity. A considerable part of the Croatian economy is based on tourism which remains largely seasonal.

10) People want to live in Croatia


apartment-1899964_1920.jpg
What is Croatia famous for? People want to come and live here. No, really.

Yes, despite many younger Croatians leaving or dreaming of leaving and despite the low wages, many people who are not from Croatia dream about living here. Of course, it's an all too familiar scenario that you go on holiday somewhere and while sitting at a seafood restaurant in sight of a glorious sunset, having had a few too many glasses of the local wine, you fall in love with Miguel or however the waiter is called who served it and Miguel's homeland. But, with Croatia, this is actually no passing fancy, no idle holiday dream. People do decide to move here. And not just for the sunset and Miguel (nobody in Croatia is called Miguel - Ed).

Croatia may be known for being poor, but it also has one of the best lifestyles in Europe. That it's cafe terraces are usually full to capacity tells you something about the work to living ratio. Croatians are not just spectators of sport, many enjoy a healthy lifestyle. This informs everything from their pastimes to their diet. There are great facilities for exercise and sport, wonderful nature close by whichever part of the country you're in. You can escape into somewhere wonderful and unknown at a moment's notice. The country is well connected internally by brilliant roads and motorways, reliable intercity buses and an international train network. The tourism industry ensures that multiple airports across Croatia can connect you to almost anywhere you want to go, and major international airports in Belgrade and Budapest, just a couple of hours away, fly to some extremely exotic locations. There are a wealth of fascinating neighbour countries on your doorstep to explore on a day trip or weekend and superfast broadband is being rolled out over the entire country. This is perhaps one of the reasons Croatia has been heralded as one of the world's best options for Digital Nomads. In a few years, when we ask what is Croatia famous far, they could be one of the answers.

What is Croatia famous for, but only after you've visited

Some things you experience when you visit Croatia come as a complete surprise. Most would simply never be aware of them until they visit. They are usually top of the list of things you want to do when you come back to Croatia.

Gastronomy


fritaja_sparoge_1-maja-danica-pecanic_1600x900ntbbbbb.jpgGastronomy is only one of the things what is Croatia known for only after you've visited © Maja Danica Pecanic / Croatian National Tourist Board

Despite a few famous TV chefs having visited and filmed in Croatia over the years, Croatian gastronomy remains largely unknown to almost everyone who's never been to Croatia. That's a shame because you can find some fine food here. Croatia has increased its Michelin-starred and Michelin-recommended restaurants tenfold over recent years. But, perhaps the bigger story is the traditional cuisine which varies greatly within the countries different regions. From the gut-busting barbecue grills and the classic Mediterranean fare of Dalmatia to the pasta, asparagus and truffles of Istria to the sausages and paprika-rich stews of Slavonia and the best smoked and preserved meats of the region, there's an untold amount of secret Croatian gastronomy to discover.

Coffee


restaurant-3815076_1280.jpgWhat is Croatia known for? Well, to locals, it's famous for coffee - not just a drink, it's a ritual

Croatians are passionate about coffee and about going for coffee. It's a beloved ritual here. Going for coffee in Croatia is often about much more than having coffee. It's an integral part of socialising, catching up and sometimes being seen. It doesn't always involve coffee either. Sometimes, you'll be invited for coffee, only to end up ordering beer. It's not about the coffee. Although, the standard of coffee in Croatia, and the places where you drink it, is usually really good.

The misapprehension: What is Croatia known for (if you are a Croatian living in Croatia)

Handball, music

For the latest travel info, bookmark our main travel info article, which is updated daily

Read the Croatian Travel Update in your language - now available in 24 languages.

Join the Total Croatia Travel INFO Viber community.

Friday, 1 January 2021

What's Changing Today? Higher Croatian Minimum Wage, Less Income Tax

January the 1st, 2020 - As Index writes, in 2021, Croatia is set to introduce the national compensation for the elderly in the amount of 800 kuna, increase the Croatian minimum wage to 3400 kuna net, reduce income tax rates down to 20 and 30 percent, and also down to 10 percent for enterprises with an income up of up to 7.5 million kuna, abolish quotas for foreign (third country) workers, and regulate the temporary stay of digital nomads.

Usually, a number of new laws come into force at the beginning of any given year, or amendments to existing ones occur, such as the new National Allowance for the Elderly Act, the new Law on Foreigners, a package of laws regulating the fifth round of tax reform - amendments to the tax laws on income, profit, VAT, the fiscalisation in cash transactions, on the financing of local self-government units, as well as new laws regulating the banking sector.

At the beginning of this year, some new bylaws came into force, such as the regulation on the amount of the Croatian minimum wage.

The Croatian minimum net wage in 2021 will rise to 3400 kuna

From the beginning of 2021, the Croatian minimum wage will be 3,400 kuna, which is 150 kuna or 4.61 percent more than it was in 2020. Namely, the government prescribed, by decree, that the Croatian minimum wage this year amounts to 4,250 kuna, which is 187.49 kuna more than last year.

The minimum hourly rate for student services - 26.56 kuna

Students who work through student services will also profit slightly from the increase in the Croatian minimum wage, to whom employers must pay a minimum of 26.56 kuna per hour from the beginning of this year, which is about 4.7 percent more than the previous 25.39 kuna in 2020.

The decision on the Croatian minimum wage for students is made every year by the Minister of Science and Education.

In February, the first payment of national compensation for the elderly will take place - 800 kuna

From this year on, Croatia will start paying the national benefit for the elderly to Croatian citizens over the age of 65 who have for whatever reason not secured an old-age pensions and are not entitled to any sort of pension, in the amount of 800 kuna.

This, popularly called the national pension, is regulated by the new Law on National Compensation for the Elderly, and the Minister of Labour, Pension System, Family and Social Policy, Josip Aladrovic, expects that around 20,000 beneficiaries will receive the new payment in the first year alone.

"The national benefit for the elderly is designed as a benefit that will cover the most vulnerable part of the population. We expect that in the first year, there will be slightly less than 20,000 who will use their right to access this benefit and the approximate cost of it to the state budget will stand at 132 million kuna in 2021,'' Aladrovic said in mid-December, when the Croatian Pension Insurance Institute (HZMO) began receiving applications for these payments.

HZMO will pay this fee through commercial banks and the first payments of this fee should start in February, with backpayments from January 2021 included.

Amendments to the Income Tax Act also define the tax treatment of this benefit - it, like other social benefits, will not be considered a sum on which income tax is paid.

Lower income tax rates

Amendments to the Income Tax Act are part of the package governing the fifth round of tax reforms. These changes have reduced income tax rates down from 24 percent to 20 percent, and from 36 percent down to 30 percent.

These lower rates should result in a higher salary for working people who, considering their salaries and thus their tax bases, must pay income tax. That increase can be anywhere from ten kuna to a thousand or two or more kuna. How much the increase is exactly depends on the amount of a person's salary, any benefits they receive for their dependent members and their place of residence and its surtax rate.

An estimate made earlier on by Finance Minister Zdravko Maric says that more than 900,000 taxpayers can expect higher incomes from the reduction of income tax rates, depending on the amount of their income. Out of a total of 2.8 million employees and pensioners, 1.9 million of them, given the amount of their income or pensions, don't pay any income tax, according to the Minister of Finance.

Amendments to the Income Tax Act reduce the rate applied from 12 percent to 10 percent applicable to the taxation of annual and final declared income and the flat-rate taxation of activities (such as renters of flats or apartments). However, the tax burden for those who fail to report their income in accordance with legal regulations is increasing, and the so-called penalty rate for asset disproportion has gone up from 54 percent to 60 percent.

This is other income based on the difference between the value of assets and the amount of assets with which it was acquired. Until now, this disparity has been taxed at a rate of 36 percent.

The novelty of the legal changes is that people who rent out their apartments, and if they certify the contract with a public notary, will no longer have to go to the Tax Administration themselves, but notaries will have the obligation to send this certified contract to the tax authorities. If, on the other hand, the contract is concluded without notarisation, people will still have to bring it to the Tax Administration themselves.

The financial effect of the changes in the income tax rate is estimated at two billion kuna, and since this tax is the income of local self-government units, the state will compensate them by taking over the equalisation fund, which is further explained below.

The state has taken over the equalisation fund

Thus, in accordance with the amendments to the Law on Financing of Local Self-Government Units, the shares of municipalities and cities in the distribution of income tax have increased from 60 to 74 percent, and that of counties has increased from 17 to 20 percent.

However, the funds for the equalisation fund, which has so far held a share of 17 percent in the distribution of income tax, will be provided for by the state budget from this year.

Income tax - the rate for enterprises with an income up to 7.5 million will fall from 12 to 10 percent

At the beginning of the year, amendments to the Income Tax Act came into force, reducing this tax rate for enterprises with an annual income of up to 7.5 million kuna from 12 percent down to 10 percent.

In addition to that, the tax rate on dividends and profit sharing was reduced from 12 percent down to 10 percent, and the tax rate on performance fees for foreign performers (artists, entertainers, athletes, etc) was reduced from 15 percent down to 10 percent.

The amendments to this law also stimulate banks to try to agree on a partial or complete write-off of receivables with clients who end up running into financial difficulties. Namely, the tax-deductible expense of a credit institution would be the same amount of the write-off of receivables, based on credit placements, the value of which is adjusted in accordance with special regulations of the Croatian National Bank.

VAT - the threshold for payment according to the collected invoices has been raised to 15 million kuna

Amendments to the Law on VAT raised the threshold for the payment of VAT according to the collected fees - from 7.5 million kuna to 15 million kuna. It also expands on the possibility of applying the VAT calculation category to imports.

Although most of the provisions of this law will enter into force at the beginning of this year, one important provision will enter into force in the middle of the year - from the 1st of July 2021, all imports of goods into Croatia from third countries will have to have VAT paid on them.

Fiscalisation - the treasury maximum is going to be prescribed by the Minister of Finance, Zdravko Maric, in an ordinance

The package of the fifth round of tax reform also includes amendments to the Law on Fiscalisation in Cash Transactions, whose provisions no longer prescribe the cash maximum, but will instead be prescribed by the Minister of Finance, according to certain categories of Croatian taxpayers.

At the beginning of the year, the application of some provisions adopted back at the end of 2019 began, so from the 1st of January 2021, the obligation to carry out the procedure of the fiscalisation of sales via self-service devices begins, as does the obligation to display QR codes on each issued and fiscalised invoice/receipt.

Law on Foreigners - quotas for foreign workers are abolished

At the beginning of 2021, Croatia will abolish its previous quota model for the employment of foreigners from third countries and move over to a new model that should make it easier for employers to employ foreigners.

Until now, the government has made decisions on determining the annual quota of permits for the employment of foreigners, for which it has also determined the list of activities and occupations they can engage in, as well as the number of permits for those professions in one year.

However, the new Law on Foreigners, which also came into force today, introduces a new model based on the opinion of the Croatian Employment Service (CES) on the justification of the employment of third-country nationals and the issuance of residence and work permits for such individuals.

This means that employers will first ask the CES to conduct a labour market survey before applying for a residence and work permit for the employment of a foreigner. If it is determined that there are no unemployed persons already here in Croatia who meet the requirements for that position, employers will then be able to apply for a residence and work permit to the Ministry of the Interior (MUP). The procedure for issuing residence and work permits, including the implementation of the labour market survey will take a maximum of 30 days.

The law also prescribes exceptions to the implementation of the labour market survey related to deficient occupations such as carpenters, masons, waiters, butchers and in the case of seasonal work of up to 90 days in agriculture, forestry, catering and tourism sectors.

The Law on sending workers to the Republic of Croatia (posted workers)

On the first day of the new year, the Law on Sending Workers to the Republic of Croatia and Cross-Border Enforcement of Decisions on Fines enters into force. It regulates the fundamental issues related to the position of workers in accordance with and on the basis of European Union legal sources, and provides a framework for compensation for the work performed, as other conditions, of posted workers.

These include the rights and guaranteed amounts of compensation for work performed in Croatia, the rights to protection at work, working hours and holidays, protection against discrimination, the right to quality for accommodation and internal mobility costs to which a Croatian worker is entitled, as well as the judicial protection of these rights.

The temporary stay of digital nomads will be properly regulated

Croatia is also among the few countries that will regulate the temporary stay of digital nomads. The Law on Foreigners also defined the term digital nomad - a third-country national who is employed or performs business through communication technology for a company or for their own company that isn't registered in the Republic of Croatia and doesn't perform work or provide services to employers headquartered in Croatia.

Temporary residence can be granted to third-country nationals who intend to stay in Croatia or are staying for the purpose of remaining here as digital nomads - this will be regulated by the new law. These people are mainly highly qualified foreigners and IT experts.

The rate for calculating and paying tourist board membership fees will be reduced by 12 percent

Enterprises can count on the reduction some parafiscal levies this year. As such, they will pay a 12 percent lower membership fee to the tourist board, regulated by amendments to the law on this topic.

This also enabled the Tax Administration to change the amount of the monthly membership fee advance due to a significant drop in that activity, and the calculation of the lump sum membership fee when persons providing catering and hospitality services in households or on family farms obtain a decision on approval in the current year, considering the fact that this membership fee is calculated based on the capacities from the previous year according to the data from the eVisitor system.

Amendments to the Tourist Board Membership Act are explicitly prescribed to enter into force on the 1st of January, and although this date isn't explicitly foreseen for amendments to the Forest Act, the application of these legal provisions coincides with the beginning of the year.

Namely, on the 15th of December 2020, Croatian Parliament passed amendments to the Forest Act, which were published in the Official Gazette (145/2020) on the 24th of December, and as they enter into force eight days after their publication, this coincides with the beginning of 2021. These legal changes envision the lowering of yet another parafiscal levy.

The total relief for the domestic economy from the above moves is estimated to stand at around 33 million kuna.

The new regulation on special tax on cars - Finance Minister Zdravko Maric expects their reduction in price

At the end of last year, the Croatian Government passed a new regulation on special tax on motor vehicles, and the Minister of Finance expects that this could lead to cheaper cars.

That regulation regulates the calculation of that special tax in the light of the new system for the measuring of carbon dioxide (CO2) emissions produced by new cars. At the beginning of 2021, the full application of the so-called Globally Harmonised Light Vehicle Test Procedure (WLTP) across the EU will begin, which means that new vehicles will no longer have CO2 measurement data according to the old type-approval rules, but it will be governed by new data. As such, it was necessary to adopt a new regulation, Minister Maric explained at a government session held on December 30th.

In addition to the environmental component which is implied, this special tax on motor vehicles also has a value component, and the new regulation has raised the value threshold up to which the special tax is not paid from 150 to 200 thousand kuna.

For the latest travel info, bookmark our main travel info article, which is updated daily

Read the Croatian Travel Update in your language - now available in 24 languages

Join the Total Croatia Travel INFO Viber community.

Tuesday, 15 December 2020

Croatian Law on Foreigners: Changes, Updates and More for 2021

December the 15th, 2020 - You might remember the mammoth article I did a couple of years ago on the minefield which is Croatian residence procedures. I'm going to do a brand new one as opposed to constant updates to that one. The Croatian Law on Foreigners, often somewhat amusingly referred to as the Aliens Act, is an extensive document full of legal jargon and references to Articles that most (normal) people have somewhat of an allergic reaction to. For some unknown reason, I don't, so I'm going to explain the changes due in 2021, one by one. 

I'm not going to cover anything that has already been written about extensively in the article linked above, and instead only detail changes that are due in 2021.

Please note that the procedures for some of these new residence permits and new rules haven't yet been set in stone, therefore I'm not going to detail any application procedures until they officially become law (and that means appearing in the infamous Narodne Novine). Anything else would be hearsay and lead to confusion in what is already a needlessly headache-inducing process for many people.

BRITISH CITIZENS LIVING IN CROATIA

First of all, let's address the question on the lips of every ''Brexpat''. British nationals who hold regulated, lawful residence (be that temporary or the more desirable permanent status) are entitled to remain living and working in Croatia broadly as they did when the UK was an EU member state. I will summarise the main points of this article (which I absolutely encourage you to read very thoroughly if you're a British expat in Croatia).

1) Brits who hold residence before the end of the transition period are safe - If you are a British citizen and you hold legal residence in Croatia, you are covered by the Withdrawal Agreement which entitles you the right to continue living in Croatia. These are acquired rights derived from you having exercised your right to freedom of movement as a former EEA citizen.

2) A declaratory system, not a new application - You will need to exchange your existing residence permit (be it temporary or permanent) for a new card before the 30th of June, 2021 at the police administration/station responsible for your location of residence. This is not a new application, merely an exchange to a card which will state that you are the holder of the rights afforded to you by the entering into force of the Withdrawal Agreement. Those documents will be issued either free of charge or at a cost not exceeding that paid by Croatian nationals for similar documents.

3) All time spent living legally in Croatia is counted towards being granted permanent residence - For those Brits who don't yet have permanent residence in Croatia and are still waiting for their five years of temporary residence to pass before applying, you're safe. Croatia will count all time spent on your temporary residence permit (from before and after the end of the UK's transition period) towards granting you permanent status. For those who already hold permanent residence, nothing will change for you other than what was explained in point 2 (above).

4) Brits who move to Croatia after 01.01.21 will not be covered by the Withdrawal Agreement - Acquired rights here refer to British citizens who utilised EU law in order to live in Croatia only. British citizens who move following the end of the UK's transition period will not be covered by the Withdrawal Agreement and different rules will apply to them as they will be treated as third country nationals.

5) Brits who are covered by the Withdrawal Agreement and hold permanent residence can leave Croatia for 5 years in a row without losing their rights - If you're a British citizen and you have permanent residence in Croatia or indeed any other EEA country, you can be absent for a period of up to 5 consecutive years without losing your status as a permanent resident.

As I stated, I really encourage you to read this article in order to find out about your status, rights and things you need to do in much, much more detail. The article also explains and links domestic and EU law, as well as that set out in the Withdrawal Agreement, which can be read in full in PDF form here should you want to know even more.

Let's move on to other changes due in 2021.

DIGITAL NOMADS:

I'm no dinosaur, but I have to admit that this term always makes me grin a little bit. I'm not entirely sure why because as a translator, I too am location independent although I live permanently in Zagreb. The idea of working from anywhere is something that was unfathomable not so long ago, but alas - this is the modern way, as the Kaiser Chiefs might say. Much has been written by TCN about this, and we even have a digital nomad currently in Croatia writing for us and providing an insight into her experiences so far. You can read her work here.

Jan de Jong, a Dutch entrepreneur living in Croatia, managed to get the ball rolling for the up and coming digital nomad visa. He has since formed a digital nomad association and you can read about the ins and outs of that, as well as the story behind the visa here and here.

It all started with an open letter from Jan de Jong on LinkedIn addressed to Prime Minister Plenkovic, and the rest is history. As of 2021, a new category of residence permit will be ''born'' and it will be precisely for digital nomads. There are some catches which make it a bit tricky, and there will certainly be things which need to be ironed out. One clause is that a digital nomad cannot work for a company registered in Croatia.

As soon as more is officially available as 2021 arrives, we will update you with a detailed guide on 1) precisely who Croatia will consider to be a digital nomad, 2) what they need to present to evidence that, and 3) what they need to do to apply for this new temporary residence status in Croatia.

The digital nomad visa is an evolving story (here is the December 15, 2020 article on the new tax law regarding nomads, for example). You can follow the latest in the dedicated TCN digital nomad section.

THIRD COUNTRY NATIONALS (NON-EEA, NON-SWISS CITIZENS) WHO HOLD PERMANENT RESIDENCE IN THE EEA

You can find out the procedures for third country nationals who already hold residence in another EU/EEA member state or indeed in Switzerland here (scroll down to the heading: What if you're a third country national with approved permanent residence in another EEA country already?

2021 will bring new procedures for third country nationals who already hold permanent residence (please note that this is only permanent residence, not temporary residence) somewhere else in the EEA who want to move to Croatia. It is important to note that it has always been easier for third country nationals with established, long term (permanent) residence in an EEA country to move to another EEA country, but the rules vary from member state to member state.

Until 2021, if you want to stay in Croatia for longer than three months (before the expiration of the visa or residence card issued to you by another EEA country) you can apply for a temporary residence permit at your local police station in Croatia, or in the Croatian consulate of the EEA country which approved your permanent residence there. The application can be found here.

The new Croatian rules for such individuals due in 2021 aren't yet available. When they are updated in the Croatian Law on Foreigners and published on Narodne Novine, we will be sure to provide an update with all of the relevant information, advice and instructions.

MEMBERS OF THE CROATIAN DIASPORA WHO DO NOT HOLD CROATIAN CITIZENSHIP

It can often be heard how difficult it is for those with Croatian heritage who don't have Croatian citizenship to get their hands on that little blue passport. As with all administrative processes in Croatia, it can either be so easy that you're sure someone somewhere has missed something, or so needlessly difficult that it leaves you rocking in a dark corner, surrounded by thousands of copies of your birth certificate. The Croatian Law on Foreigners has (finally) seen that this is an issue, and a new residence permit for people with Croatian heritage but no Croatian citizenship is coming in 2021.

In order to be approved for this new residence permit coming next year, you'll need to be issued a special certificate from The Central State Office for Croats Abroad (click here for more), along with an application and other, accompanying documents which will certainly involve proof of identity etc, which haven't yet been detailed. The Ministry of the Interior hasn't yet finalised what needs to be done for people who want to apply for this particular residence permit. By the time 2021 rolls around, things will hopefully be more clear and we will provide a detailed update on what is needed.

For more on residence, citizenship and administrative procedures related to the Croatian Law on Foreigners, you can follow me here.

Wednesday, 9 December 2020

Washington Post: Croatia Attracting Digital Nomads During the Pandemic

December 9, 2020 – One of the leading American daily newspaper, the Washington Post, published an article about Croatia attracting digital nomads from the USA while the rest of Europe banned all travel.

The Washington Post wrote about digital nomads who spent several months in Croatia and Dubrovnik during the coronavirus pandemic, said Ina Rodin, the Croatian National Tourist Board director in the United States.

The article states that many Americans decided to travel thanks to the first direct airline between Croatia and the United States, namely between Dubrovnik and Philadelphia, introduced in June 2019. According to the Croatian National Tourist Board, Americans were the second most numerous guests in Dubrovnik last year, with almost 160,000 arrivals and more than 442,000 overnight stays, writes the Washington Post.

Sarah Morlock, a freelance writer and social media manager from Indiana, who worked remotely and spent October and November in Dubrovnik with her partner, shared her experience with readers. She pointed out that when choosing a place to stay, she is looking for historic cities with preserved nature and a good internet connection, and in that sense, Dubrovnik has fulfilled all her expectations.

Binational couples attracted too

Apart from digital nomads, Croatia is also attractive for binational couples who, due to the coronavirus pandemic and limited travel opportunities, organized their meeting in Croatia.

One of the couples who did so was Justin Leung from the USA and Katja Lau from Germany. They were supposed to meet in San Francisco, but the coronavirus pandemic and lockdown thwarted their plans. Therefore, they decided to find a place that welcomed both Americans and Germans and thus chose to meet in Croatia, where they spent one month.

The Washington Post points out that Dubrovnik is trying to attract digital nomads, so a project to introduce ultra-fast broadband Internet was presented in February. Also, a virtual conference "Dubrovnik for digital nomads" was held in October to encourage them to choose Dubrovnik for their remote office.

Washington Post covers this topic right when the introduction of the digital nomad visa in Croatia is increasingly likely. Namely, TCN reported a new update about digital nomad visas in Croatia today, as the Croatian Digital Nomad Association has officially been founded.

At the beginning of 2021, Croatia will introduce a digital nomad visa, which will make it the second country in Europe and the fifth in the world to welcome digital nomads from all over the world.

Thursday, 26 November 2020

American Family in Croatia: They Left Everything Behind to Travel Europe

November 26, 2020 – Traveling the world during the pandemic may seem impossible for many, but not for one American family in Croatia. Despite the obstacles, they are now living their dream digital nomad lifestyle in Croatia.

In the midst of the coronavirus pandemic, when the countries around the world are closing their borders and traveling is kept to a minimum, one young American couple decided to go the opposite way. On October 4th, they took a one-way flight to Europe to pursue their dream of becoming full-time digital nomads.

And they did it right at the time when the introduction of the digital nomad visa in Croatia is increasingly likely.

For a long time, Victor and Klaudia Gonzalez have had a great desire to travel and show their son Augie the splendor of the world. Like many people, they have always wondered how it is possible to turn travel into a way of life with almost no savings. Little by little, as their desire did not subside, they decided to try their luck and embark on the big life journey of moving abroad, to Croatia.

Croatia affordable and welcoming

However, their journey was not easy, since they almost had no budget at all. They met in college 8 years ago in Michigan, USA. Only three years ago, when Victor was finishing college and their son Augie was a toddler, they were even getting government help to buy food. But then things started to get better.

"When Victor finished college, he got his first full-time job. We moved from Michigan to Colorado, where we caught the travel bug camping and doing hiking trips. One year ago, we decided to make our dream a reality. We sold everything for only 1,000 dollars. We didn’t sell a big house or flat because we didn’t have one, and our car wasn’t worth anything to sell," says the couple, explaining that Klaudia was homeschooling and working from home, while Victor was working between 60 to 70 hours a week to save enough money for a plane ticket to Europe.

"We were ready to leave when my mom was diagnosed with stage 3 breast cancer. We stayed with her until she got better, and she was the one who inspired us to follow our big dream," says Klaudia.

FJ2.jpeg

Gonzalez family pictured on the day they left the USA at the Chicago O'hare Airport in October / Private archive

Although their first plan was to move to Poland, where Klaudia's heritage comes from (their son Augie is also bilingual, speaking both English and Polish), Croatia stuck out as their top choice because it was a welcoming destination for Americans during the pandemic. Besides, they note, Croatia is a safe country with ideal weather and a good connection to the rest of Europe.

"Originally we planned to stay for one month, but the quality of life and the welcoming energy has convinced us to wait until after the holidays. We look forward to seeing the Christmas lights in Zagreb. We’ll be in Croatia for almost 3 full months," the couple says, adding that Croatia and the whole Balkan region is a hidden gem, and is both affordable and welcoming.

From the sea to the mountains

"Croatians are such warm and inviting people. Our Croatian host has become a life-long friend, and when exploring inland Dalmatia, Croatian strangers invited us into their home for cherry liquor and baked goods. We won’t ever forget the hospitality of Croatians!" they say.

For now, they have visited Dubrovnik, Split, and Krka and Plitvice Lakes National Parks, and on their Instagram page The Family Journalists where they share their experiences from Croatia, they did not hide their pleasure.

"For such a small country, Croatia has a diverse landscape. We stayed in a flat next to the sea, and within an hour, we were in inland Dalmatia riding an ATV on the top of Croatia’s second-highest mountain," says this couple whose priority was to have remote careers. Klaudia is a teacher and writer, while Victor is a self-taught software engineer.

Full-time traveling on a budget

Their son Augie enjoys his time in Croatia and is always ready for the next adventure. If you ever meet this family on the street, you will probably hear Augie saying his favorite Croatian word: "Bok!"

The only thing that they miss is their families, who won't be there for their son's fifth birthday this year, which they will be celebrating in Croatia. Their initial plan was to stay in Croatia for one month, but now they decided to stay until spring when Klaudia's parents visit them from the USA.

FJ3.jpeg

Exploring Split and Čiovo island / Private archive

Nevertheless, their return to Croatia is not ruled out.

"With the introduction of the digital nomad visa, it will become even easier for Americans to visit Croatia or come back," Klaudia says.

"We want people to understand that it's possible to travel the world as digital nomads with hard work. It’s possible for those that don’t have a lot of savings to travel full-time by making a budget and visiting more affordable European countries like Croatia. Now we travel with four suitcases and two backpacks as The Family Journalists interviewing locals and sharing stories from around the world," says the happy family.

To read more about digital nomads in Croatia, follow our dedicated page.

Page 2 of 3

Search