January 01, 2024
In this article you can find detailed instructions on how to obtain work permit in Republic of Croatia for the purpose of self-employment of foreigners as couriers and delivery workers.
General employment law provisions
In the Republic of Croatia, it is possible to perform the job of a delivery worker in three ways. In accordance with Article 221d of the Labor Code, the courier may be employed directly by the digital platform, or directly by the aggregator, i.e. a company engaged in the activity of representation or mediation for one or more digital platforms (intermediaries).
However, in accordance with Article 221f of the Labor Code, other natural persons who are not employed by the digital platform or aggregator can perform delivery activities as self-employed persons (through a company or craft) if they have a contract with a digital platform (e.g. Glovo).
- Conditions for obtaining a work permit for the purpose of self-employment according to Foreigners Act
A third-country national (foreigner) is any person who does not have Croatian citizenship, who does not have the citizenship of an EEA Member State (EU countries, Norway, Iceland and Liechtenstein) or the Swiss Confederation, and who has the citizenship of a third country or is a stateless person.
Therefore, for foreigners who are currently residing in Spain and who do not have a regulated long-term residence in Spain (continuously 5 years of stay in Spain in order to exercise the right of long-term residence) and for foreigners who do not currently reside in Spain, and if they do not have the above citizenship, the same rules from Foreigners Act apply for the arrival to the Republic of Croatia for the purpose of residence and work as a self-employed person.
In the case of self-employment of a foreigner in a company in which a foreigner has an ownership stake of at least 51% or in a craft in which a foreigner has an ownership stake at least 51% the police administration independently issues residence and work permit, in which case it is not necessary to conduct a labor market test and obtain a positive opinion of the Croatian Employment Service.
Thus, to obtain a residence and work permit for the purpose of self-employment, it is necessary to meet the following criteria:
General conditions:
- prove the purpose of temporary residence,
- have a valid foreign travel document,
- have means of subsistence,
- have health insurance,
- not be convicted of criminal offences from the home or country in which a foreigner resided for more than one year immediately prior to his or her arrival in the Republic of Croatia, unless a worker or a student, a researcher or a person is relocated within a company using mobility from another EEA Member State,
- not have a ban on entering and staying in the Republic of Croatia or an alert issued in Schengen Information System for the purpose of refusing entry,
- do not pose a danger to public order, national security, or public health.
Conditions related to an established company or craft:
- that a foreigner has invested at least EUR 26,544.56 in the establishment of a company or craft,
- that at least three Croatian citizens are employed on an indefinite and full-time basis, and whose gross salary amounts to at least the amount of the average gross salary paid in the Republic of Croatia in the past year according to the officially published data of the state administration body responsible for statistics (about EUR 1,600.00),
- that foreigner’s monthly gross salary amounts to at least 1.5 average monthly gross paid salary in the Republic of Croatia according to the latest officially published data of the state administration body responsible for statistics (about EUR 2,400.00).
Tax liabilities of companies
In Croatia, companies pay corporate profit tax amounting to 10% to 1 million EUR in revenue or 18% if the company generates over 1 million EUR in revenue.
Corporate profit tax is determined for a tax period, which is usually a calendar year. The tax base (10% or 18%) is determined based on data recorded in business books.
The company pays an advance tax based on a tax return for the previous tax period (the previous calendar year) and the advance is paid monthly until the end of the month for the previous month in the amount obtained when the tax liability for the previous tax period (the previous calendar year) is divided by the number of months of the same period.
The company that begins its activity does not pay advances until the first tax return. The company submits a corporate tax return for the tax period (calendar year) no later than four months after the expiry of the period for which the profit tax is determined.
So, if a foreigner establishes a company this year, in 2024, the company will be obliged to file a tax return no later than the end of April 2025.
Also, in Croatia there is a value added tax (VAT) in the amount of 25%. VAT is not mandatory for companies with revenues below EUR 40,000.00 in a calendar year, while VAT is mandatory for companies generating revenues over EUR 40,000.00 per year, from the moment that threshold is overstepped.
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