Expat Lawyers in Croatia - Relocation, Tax & Employment

Holistic approach

Some examples of areas in which CMS can help:

• Employee agreements covering all employment law aspects of the international assignment lifecycle in the relevant jurisdiction from initial assignment through to termination;
• Employers’ and employees’ tax and social security obligations, multi-state wage and income tax returns;
• Reporting obligations of employer and employee;
• Tax optimization of salary splits and employee benefits;
• Applications for tax benefits for expats;
• Help with and coordinate payroll services; and
• Analysis of the applicable social security scheme(s) and the consequences thereof.

Fun fact

Did you know that when coming to Zagreb, the capital of Croatia, expats should prepare for personal visits to the Police Department for most information on work and/or stay permits? This may actually save you time and effort if you have specific questions about your expat status and beats waiting for phone or email answers.

Did you know that the stay and work of non-EEA expats is heavily regulated, leading to numerous bases and conditions for issuance of some kind of stay / work permit?

Did you know that the quota system has been replaced with the labour market test, meaning that the authorities analyse the status of the market before issuing each individual stay / work permit to non-EEA expats (some exceptions to this rule still exist)?

Did you know that the tax exemption is available for so called “digital nomads”? In addition to being exempt from paying taxes in Croatia, digital nomad status also eases regulation of work and stay in Croatia.

References

Österreichische Post AG

Advising the Austrian logistics and postal service provider on the legal and tax requirements for successfully seconding their managing director to Croatia, providing assistance with applying for a residence permit / support with social security and local taxation matters for the posted director and his family members. Providing legal and tax reviews of the existing employment contracts, guiding the client successfully through a labour inspection, delivering comprehensive overviews of employment, non-compete, and posting matters.

Bouygues

Advising the Croatian subsidiaries of the global provider about the building, civil works, energy & services and concessions markets on taxation and social security matters on all matters concerning posted workers, especially in the context of tax questions, including PIT (personal income tax) and social contributions, and general assistance with applying for residence permit / support with social security and local taxation matters for highly skilled posted workers.

SPAR

Advising on structuring cross‑border employment and management arrangements between Slovenian and Croatian companies of the international retail group. The mandate covered postings, director and senior management roles, short‑term and periodic work in Croatia, and alternative engagement models. Our advice focused on Croatian labour law compliance, posting requirements, risk of misclassification, and related tax and social security implications, including the applicability of EU social security rules, income allocation and recharge models. Coordinated analysis of employment and tax implications, done together with the Slovenian team, delivered practical, risk‑focused solutions for cross‑border operations.

Yildirim Group / Petrokemija d.d.

Since Yildirim’s acquisition of a majority stake in Petrokemija, Croatia’s only specialised agricultural fertiliser manufacturer, we have been advising them on employment, immigration and tax aspects relating to foreign directors of Petrokemija d.d. working in Croatia. Our work included assistance with appointment of non‑Croatian directors, obtaining work and residence permits - including EU Blue Card applications for highly qualified third‑country nationals, health insurance coverage of the family members, and clarifying Croatian tax residency status of the foreign directors. We assessed appropriate engagement models and compliance requirements under Croatian labour, immigration and tax laws and supported them in a day‑to‑day compliance and risk mitigation.