KEY FACTS FOR INVESTORS


1. INTRODUCTION

Zadar County is one of seven coastal Croatian Counties and it is located in the very centre of the Croatian part of the Adriatic coast. It is geographically positioned in such a way that it covers high mountain hinterland and coast and it connects important parts of the Croatian coast and Central Croatia. Adriatic tourist motorway and motorway Zagreb-Split as well as railway line Zagreb-Knin-Split pass through it, therefore its geo-traffic position with a modern infrastructure has a great significance for connecting, not only regional centres of Northern and Southern part of Croatia, but also with European centres. International airport, connection to the motorway, industrial port and the railway station are all within 10 kilometres range and as such create a unique highly valuable combination of elements of traffic infrastructure in the wider region.

Largest city and the administrative seat of the County is Zadar, almost 3.000 years old and third by size city on the Croatian Adriatic coast and fifth in Croatia. Zadar is the educational and economic centre of the region.

Priority sectors for investment are: fishery, agriculture, metal processing industry and tourism.

Development of tourism is closely connected with agriculture. Ravni Kotari, which are positioned in the centre of Zadar County, cover 30% of total arable land in Dalmatia. Along with the fertile land, significant role for the development of agriculture belongs to the Mediterranean climate, rich water resources and environmentally safe conditions which describe best how the population cares about the environment which is transferred as a heritage from generation to generation. Zadar is the seat of the largest shipping company in Croatia - Tankerska plovidba, and Zadar County leads in fisheries and mariculture, economic branches with the highest share in regional export. Activity of fish processing is growing, not only in the coastal area, but in the Zadar hinterland - Benkovac and Gračac. Production of metal and metal products has a long tradition in the Zadar County, and in the past several years industry of automotive components had most success.

2. ECONOMY

Economy of Zadar County

According to the data of the Croatian Pension Institute total number of employees, or insured persons in Zadar County at the end of December 2015 was 46.797. According to the data of the Croatian Employment Institute number of unemployed persons at the end of December of 2015 was 8.895.

In commodity exchange, Zadar County maintained a surplus of balance amounting to 234,97 mil. EUR of export compared to 231,37 mil. EUR of import in 2015.

GDP - 2013

Zadar County’s gross domestic product in 2013. was 1,401 billion Euro, which puts the County in the 8th place in Croatia according to the GDP value.

  2011. 2012. 2013.
Republic of Croatia 10,446 10,297 10,228
Zadar County 8,286 8,169 8,173
Adriatic Croatia Euroregion 9,964 9,885 9,870
  2012. 2013. 2014. 2015.
Croatia -2.2 -1.1 -0.4 1.6
Italy -2.8 -1.7 -0.3 0.8
Poland 1.6 1.3 3.3 3.6
Austria 0.7 0.1 0.6 1.0
Czech Republic -0.8 -0.5 2.7 4.5
Romania 0.6 3.5 3.0P 3.8P
Hungary -1.7 1.9 3.7 2.9
Slovenia -2.7 -1.1 3.0 2.9
Euro area -0.5 0.2 1.4 2.0
City 2013. 2014. 2015.
Zadar County 12.424 9.838 8.895
Adriatic Croatia Euroregion 116.361 102.927 95.682
Republic of Croatia 363.411 316.763 285.468
  2014.
Export Import
2015.
Export Import
Zadar County 182,028 179.639 234.969 231.376
Republic of Croatia 10.368.782 17.129.405 11.530.651 18.481.973

3. DEMOGRAPHICS

According to the Census Zadar County had a population of 162.045 in 2001, and according to the population estimate for 2009 it had a population of 175.682 which is a growth of 8,4%.

Age groups Zadar County Republic of Croatia
Total 171.462 4.238.389
0 – 4 8.545 207.937
5 – 9 8.838 209.593
10 – 14 8.538 207.004
15 – 19 10.231 243.630
20 – 24 10.319 247.901
25 – 29 10.268 271.211
30 – 34 11.146 293.174
35 – 39 11.379 288.253
40 – 44 10.728 277.091
45 – 49 11.463 295.200
50 – 54 11.448 306.290
55 – 59 12.202 315.133
60 – 64 11.881 286.848
65 – 69 10.148 219.787
70 – 74 8.629 199.279
75 + 15.705 370.058
Country EUR
Czech Republic 26,11
Poland 26,41
Croatia 25,08
Romania 17,57
  31.12.2014.
Zadar County Republic of Croatia
31.12.2015.
Zadar County Republic of Croatia
Unemployed 9.838 316.763 8.895 285.468
Employed 46.364 1.397.400 47.190 1.413.637
Labour force 56.202 1.714.163 56.085 1.699.105
Sectors Zadar County
Agriculture, forestry and fishing 5,0
Mining and quarrying 1,3
Construction 4,2
Wholesale and retail trade; transportation and storage 3,1
Information and communication 1,4
Financial and insurance activities 2,5
Real estate, renting and business activities 6,2
Public administration and defence: compulsory social security, Education, Health and social work, other community, social and personal services and Activities for households 3,6
Other service activities 4,0

Apart from the birth rate, Zadar County has a positive migration balance and in 2012 it was the second in the Republic of Croatia, behind city of Zagreb. Migration balance throughout the years is presented in the following table.

Year Immigrants
From another county From abroad
Emigrants
In to another county Abroad
Net migration
2012 1749 473 949 546 727
2013 1577 561 1059 718 361
2014 1600 534 1255 1248 -369

4. EDUCATION

Zadar is the educational centre of the region. University in Zadar was created on foundations of a Dominican polytechnics long ago in 1396. This puts the city in the group of 20 oldest University cities in Europe, in terms of the tradition of European higher education and science.

University in Zadar has 25 departments. Traditionally, the strongest departments are the ones in humanistic sciences, as archaeology, philosophy, psychology, sociology, history and art history and language science (English, French, Spanish, Russian, German and Italian), but from the re-establishment of the University in 2002 new departments were established, among which are the ones for economy, traffic and maritime affairs as well as agriculture and aquaculture of the Mediterranean, whose newly created educated labour force can be very interesting for investors.

City Secondary Education/Number of Students Tertiary Education/Students graduated
Zadar County 7.630 936
Statistical region Adriatic Croatia 56.871 10.820
Republic of Croatia 177.102 34.745
City Schools of professional higher education Polytechnics Professional study University study Art academics TOTAL
Zadar County - - 111 829 - 940
Statistical region Adriatic Croatia 139 1.313 1.951 7.218 199 10.820
Republic of Croatia 2.037 5.457 3.899 22.789 563 29.355

5. WAGES AND SALARIES

Official Gazzete No. 66. from 30 December 2015 published the minimum salary for the period from 01 January 2016 to 31 December 2016 in Republic of Croatia, and it amounts to 416 EUR.

According to the provision of the Article 4 paragraph 3 and 4 of the Act on minimum salary (NN 67/08) it is provided that the Central Bureau of Statistics publishes the amount of the minimum salary each year. Amount of the minimum salary rose for 12 EUR since last year.

Sectors 2015. (EUR)
Wholesale and retail trade; repair of motor vehicles and motorcycles 536,7
Manufacturing 571,8
Accommodation and food service activities 583,7
Construction 499,8
Administrative and support service activities 558,6
Agriculture, forestry and fishing 656,5
Water supply: sewerage, waste management and remediation activities 634,8
Transportation and storage 1303,8
Professional, scientific and technical activities 656,1
Mining and quarrying 538,7
Arts, entertainment and recreation 699,5
Information and communication 503,6
Education 571,3
Other service activities 420,3
Real estate activities 499,9
Human health and social work activities 487,3
Financial and insurance activities 799,4
Public administration and defence; compulsory social security 650,1
Electricity, gas, steam and air conditioning supply 562,9
TOTAL SECTORS 629,8
Country Monthly pay in EUR
Croatia 735
Czech Republic 765
Estonia 832
Hungary 643
Poland 705
Romania 417
Country Employer % Employee %
Croatia 20 17.2
Hungary 27 17
Czech Republic 34 11
Romania 20.8 10.5
Italy 27-32 9-10
Austria 21.7 15.2

Individual Income Tax: Croatia's individual income tax rates for 2015. are progressive, from 12% to 40%.

Income (HRK) %
0-2.200 12
2.200-13.200 25
over 13.200 30

6. TAX

The Croatian Tax System:

  • 1. State taxes
  • 2. County taxes
  • 3. City or municipal taxes
  • 4. Joint taxes
  • 5. Taxes on winnings from games of chance and fees for organising games of chance

TAX RATES

I. THE TAX RATE ON CORPORATE INCOME TAX (PROFIT TAX) IS 20%

II. THE TAX RATE ON WITHHOLDING TAX:

12% on dividends and shares in corporate income (profit),

15% on royalties and other intellectual property rights (copyright, patent, licensing, trade mark, design or pattern, production procedure, production formulas, draft, plan, industrial or scientific experience and similar rights)

15% on market research services, tax and business counselling and auditor services,

15% on interests,

20% on all types of services that are paid to entities who have their headquarters or place of effective management and supervision of operations in countries other than EU member states, where the general or average nominal rate of income tax is lower than 12,5%, and state was published in the list of countries that made the minister of finance and is published on the website of the Ministry of Finance and the Croatian Tax Administration.

VAT TAX RATES

VAT shall be paid at a rate of 5% on:

1. all kinds of baked bread,

2. all kinds of milk,

3. books with contents that are professional, scientific, artistic, cultural and education, textbooks for elementary, secondary and tertiary education, printed on paper or other media for text including CD ROM, video cassette and audio cassette,

4. medicines determined by the Decision to determine the List of Medicines of the Croatian Institute for Health Insurance,

5. products that are surgically implanted into the human body – implants (heart valves, pacemakers, artificial joints, material for osteosynthesis, stents, IUDs and so on) and other medical products for making good physical impairment,

6. scientific magazines,

7. newspapers

8. movie tickets

VAT shall be paid at a rate of 13% on:

1. services of accommodation or accommodation with breakfast, full or half board in all kinds of commercial hospitality facilities and on services of agency commission for these services

2. services of preparing food and restaurant services, preparing and serving non-alcoholic drinks and beverages, wine and beer in such premises, in accordance with special legislation,

3. daily and periodic newspapers and magazines printed on paper with the exception of those that, in their entirety or mainly, contain advertisements or serve for advertising purposes

4. oils and fats for human consumption, of either vegetable or animal origin, in accordance with special legislation,

5. baby food and processed grain food for infants and small children, in accordance with special legislation,

6. supply of water, with the exception of water marketed in bottles or any other packaging,

7. white sugar produced from sugar cane or sugar beet,

8. concert tickets,

9. magazines for culture and the arts.

VAT shall be paid at a rate of 25%:

- on taxable base (the consideration for the goods supplied or the services rendered) of supplies of all other taxable goods and services.

Country Corporate Tax rate
Slovenia 17%
Croatia 20%
Austria 25%
Italy 27.5%

7. WORKING HOURS AND HOLIDAYS

Employment in the Republic of Croatia has been regulated by the Labour Act. Its provisions guarantee safety both for the employer and the employee. Employment may also be regulated by collective agreements, signed by and between one or more employers or association of employers as one party and one or more trade unions on the other. Every employer employing over 20 employees must have a Rulebook covering all areas connected to employment and labour force, particularly covering areas defined by the Labour Act, and provide possibilities of free choice among various options.

There are two categories of working hours, i.e. for full time jobs and for part time jobs. Working hours may be shortened if the worker cannot be protected from adverse impacts despite use of protection equipment. Working hours are shortened in proportion to the adverse impact caused by conditions of work influencing the worker’s health and working ability.

Full weekly working time must not exceed 40 hours. If working time has not been determined by the law, collective agreement, agreement between the workers' council and the employer or labour contract, it is presumed that full working time is 40 hours a week.

Overtime of an individual worker shall not last longer than thirty two hours per month nor longer than one hundred and eighty hours per year. Pursuant to the Labour Act, the shortest annual holiday lasts 20 working days.

Country Average hours for part-time workers Average hours for full-time workers Legal maximum
Croatia 20,7 40,9 40,0
Austria 20,9 41,5 50,0
Belgium 24,2 39,2 38,0
Czech Republic 21,5 40,8 48,0
France 23,2 39,1 48,0
Germany 19,1 40,5 48,0
Italy 21,7 38,7 48,0
Netherlands 19,9 38,9 60,0
Poland 21,6 41,1 40,0
Spain 18,7 40,2 40,0
Sweden 24,2 39,9 40,0
United Kingdom 19,7 42,4 48,0
EU28 20,4 40,4 48,0

8. TELECOMMUNICATIONS

Croatian fixed telecommunication network is entirely digitalised and most advanced in comparison with other countries of Central and Eastern Europe. Telecommunication market is entirely deregulated and there is a large number of providers both in fixed and mobile telephony, as well as internet providers.

Fixed and mobile telephony are available in all settlements of Zadar County, whereas broadband internet (ADSL) is also widely available.

Pricelist: www.t-com.hr, www.iskon.hr, www.bnet.hr, www.t-mobile.hr, www.vipnet.hr, www.tele2.hr, www.tomato.com.hr, www.bonbon.hr

9. ELECTRICITY

The fee of connecting to the power grid in the area outside Zagreb has been set to HRK 1.350 + VAT per MW.

  Electricity prices for industrial consumers
EUR/kWh
Czech Republic 0.078
Belgium 0.108
Croatia 0.093
Poland 0.086

10. WATER

Act on Financing Water Management proscribes an obligation of paying the fee for water management. This fee is paid upon construction of buildings, and payers are investors within the framework of civil engineering regulations. Amount of the fee for production facilities ranges from 0,25 to 1,27 EUR/m³, for business facilities from 2,13 to 7,09 EUR/m³, for roads inside the facilities from 0,07 to 0,50 EUR/m³.

Price of water structure City of ZADAR Other settlements City of NIN and Municipality of VRSI Municipality of KALI Municipality of Bibinje City of Obrovac
- fix price 2,66 2,66 2,66 2,66 2,66 2,66
Prices of water for
- water supply
- drainage
- water purification

0,90
0,25
0,22

0,90
-
-

0,90
-
-

0,90
-
-

0,90
-
-

0,90
0,14
-
Total price (VAT included) 1,52 1,01 1,01 1,01 1,01 1,16
Other fees for construction
- water use
- water protection fee
- infrastructure development fee


0,38
0,05
0,27


0,38
0,18
0,05


0,38
0,18
0,25


0,38
0,18
0,19


0,38
0,18
0,66


0,38
0,18
0,05
Total fees 0,71 0,61 0,81 0,75 1,22 0,61
TOTAL PRICE OF WATER 2,23 1,62 1,82 1,76 2,23 1,77

11. OIL AND GAS PRICES

INA has unique wholesale and retail prices of oil derivatives and refinery gas regardless on the amount of purchase or type of customer. Each individual customer undergoes the process of negotiation in order to make possible the delivery of goods, contract signing, where commercial conditions for each individual customer are set out.

Fuel HRK/lit
Eurosuper 95 9.15
Eurosuper 95+ 9.25
Eurosuper 98 9.68
Eurodizel 8.38
Eurodizel+ 8.48
Autoplin 4.55
Lož ulje 4.24
Eurosuper 98+ 9.92
Eurosuper 100 9.69

12. FACTORY AND OFFICE PRICES

Average prices for lease/purchase of business real estate in Croatia, February 2011.

City Area sq m Rent/EUR/sq m Purchase/EUR/sq m
Zadar
surroundings
up to 200
up to 200
14
8
2061
1159
Zagreb
surroundings
up to 200
up to 200
12
7
2095
1154
Split
surroundings
up to 200
up to 200
14
7
2110
1096
Rijeka
surroundings
up to 200
up to 200
11
6
1861
983
City Area sq m Rent/EUR/sq m Purchase/EUR/sq m
Zadar
surroundings
more than 200
more than 200
7
4
968
692
Zagreb
surroundings
more than 200
more than 200
7
5
1251
976
Split
surroundings
more than 200
more than 200
7
5
1311
852
Rijeka
surroundings
more than 200
more than 200
6
4
986
863
City Area sq m Purchase/EUR/sq m
Zadar
surroundings
more than 1000
more than 1000
165
85
Zagreb
surroundings
more than 1000
more than 1000
209
116
Split
surroundings
more than 1000
more than 1000
226
127
Rijeka
surroundings
more than 1000
more than 1000
158
107

Price of industrial land in Zadar County ranges from 5-35 EUR/m² depending on the location and it includes infrastructure.

13. COST OF LIVING

Study of costs of living carried out by Mercers covers 200 products or services, including housing, transportation, food, clothes, household items and entertainment.

Rank City
1. Hong Kong, Hong Kong
2. Luanda, Angola
3. Zurich, Switzerland
4. Singapore, Singapore
5. Tokyo, Japan
8. Geneva, Switzerland
15. Seoul, South Korea
17. London, GB
25. Abu Dhabi, UAE
41. Buenos Aires, Argentina
44. Paris, France
45. Miami, United States
47. Dublin, Ireland
50. Milan, Italy
64. Helsinki, Finland
67. Moscow, Russia
91. Cairo, Egypt
100. Berlin, Germany
101. Istanbul, Turkey
110. Barcelona, Spain
116. Nairobi, Kenya
159. Zagreb, Croatia
199. Skopje, Macedonia
200. Lusaka, Zambia

14. TRANSPORT

Air transport

Airport Zadar is located 10 km from Zadar. Airport Zadar according to the division of airports in Republic of Croatia has a character of a secondary airport which primarily serves the needs of passenger travel. Commercial airliners: Croatia Airlines, German Wings, Ryanair, Lufthansa, Intersky, Denube Wings, Job Air.

Price list: www.zadar-airport.hr

Road transport

Prices per kilometre range from 0,80 to 1,20 EUR. Prices of load transport are freely negotiated, but within the range mentioned above (Association of Croatian Road Carriers).

Sea transport

Port Zadar

Port surface of the Port of Zadar : 200.000 m².

PIER 1 shore for liquid cargos, length 60 m (berth for ships unto 190 m) depth from 10,3 to 12 m
PIER 2 shore for the supplying of oil platforms, length 180 m, depth from 4,8 to 7,1 m
PIER 3 shore for bulk freight, length 140 m, depth 12 m
PIER 4 shore for loading/unloading of tropical fruits, length 135 m, depth from 7 to 11,4 m
PIER 5 shore for loading/unloading of general cargo, length 170 m, depth from 7 to 8,7 m
PIER 6 shore for loading/unloading of general cargo, with RO-RO ramp, length 150 m, depth 8,7 to 10,2 m

Pricelist: www.port-authority-zadar.hr or dstambuk@port-authority-zadar.hr

15. FDI IN CROATIA/COUNTIES

The following table shows already realized foreign investment in Croatia, indicating that many foreign companies recognized Croatia's exceptionally positive attitude to investors.

Company name Origin
ALSTOM France
Austria Creditanstalt Group Austria
Banca Commerciale Italiana Italy
BENNETON Italy
BILLA Austria
CALZEDONIA Italy
CARLSBERG Denmark
COCA-COLA BEVEREGES USA
Deutsche Telekom Germany
EPCOS/SELK Germany/Croatia
ERICSSON NIKOLA TESLA Sweden
Erste und Steiermarkische Bank Austria
GLAXO SMITH KLINE Great Britain
GRUPPO INTESA Italy
HEINEKEN ADRIA Netherland
Hofmann and Pankl Betelligungasse Austria
HP USA
HYPO LEASING KROATIEN Austria
IBM USA
Interbrew Belgium
METRO CASH & CARRY Germany
MICROSOFT USA
MOL Hungary
ORACLE USA
PLIVA (former member of the BARR GROUP) - TEVA Pharmaceutical Industries Israel
Rockwool Denmark
SAP Germany
SIEMENS Germany
Societe Suisse de Cemment Portland Switzerland
Sutivan Investment and Excelsa Anstalt Lichtenstein
UNICREDITO Italy
Unicredito Italiano Italy
VOLEX Ireland
YAZAKI Japan
Country of Origin Number of Companies Total Employment
Austria 6 163
Slovenia 4 423
USA 2 212

Italy

2 138
Hungary 1 1000
Lichtenstein 1 87

5 reasons to invest in Zadar County

  • Strategic position in the Mediterranean
  • Cost competitiveness
  • Labour potential
  • Excellent traffic infrastructure and connections
  • Traditional hospitality and quality of living

Zadar County Development Agency
ZADRA NOVA
Grgura Budislavića 99
23000 Zadar, Croatia

T +385 23 492 880
F +385 23 492 881

www.zadra.hr
zadra@zadra.hr