In October 2024, the Croatian Parliament held a session regarding amendments to the Foreigners Act, discussing key changes related to foreigners’ residence, employment, and the encouragement of emigrants’ return. The aim of these amendments is to further align the legal framework with the labour market’s needs, streamline administrative procedures, and harmonize legislation with European Union regulations.
New Residence Purpose – Return of Emigrants
One of the significant changes is the introduction of a new residence purpose for the Croatian diaspora. Emigrants, their descendants, and family members will no longer be required to meet financial and health insurance requirements for temporary residence. They will be granted temporary residence for two years, after which they can apply for permanent residence after three years. This will allow them to work, self-employ, study, and pursue education without additional permits. In 2025, immigrants will be exempt from income tax for five years.
Incentives for Digital Nomads and Highly Skilled Workers
The amendments extend the stay for digital nomads to 18 months instead of the previous 12. Additionally, the rules for issuing EU Blue Cards have been improved to attract highly skilled workers, particularly in the IT sector. The Blue Card will be valid for 48 months and available to individuals without formal educational qualifications as long as they possess the required skills demonstrated through work experience.
New Rules for Employing Foreign Workers
Croatia is currently experiencing a significant number of foreign workers in its labour market, and the amendments introduce stricter rules for their employment to ensure workers’ rights and protect the domestic labour market. Employers with a history of labour law violations will not be allowed to hire foreign workers, and there will be restrictions on the number of permit applications based on company size.
For non-shortage occupations, the ratio of domestic to foreign workers must be 16:1. In contrast, for shortage occupations, the ratio is 8:1.
There is also an obligation to provide adequate accommodation for foreign workers, with conditions to be regulated by secondary legislation.
Simplification of Administrative Procedures
To reduce administrative burdens, residence and work permits are valid from one to three years, while seasonal workers will have permits valid for up to nine months. At the same time, foreign workers can switch employers more efficiently, increasing the system’s flexibility.
Conclusion
The amendments to the Aliens Act aim to adapt to the growing demands of the labour market, attract highly skilled workers, and facilitate the return of the Croatian diaspora. The new law also establishes precise mechanisms for protecting workers and introduces stricter rules for employers to ensure appropriate working and living conditions for foreign workers.
Confida Croatia is closely monitoring legislative changes to support clients in understanding new regulations and ensuring business compliance with the law. Contact us for further information on working with foreign workers or diaspora rights.
