Up to HRK 200,000 for ex-pats wishing to start business in Croatia

PM Andrej Plenković on Wednesday announced a new scheme called "I choose Croatia", envisaging grants for Croatians opting to return from other EU countries and start their own business in Croatia.

The scheme is sort of an extension of the HZZ employment service's scheme encouraging self-employment and, among other things, it envisages an additional grant in the amount of HRK 50,000 for people returning from other EU countries to start their own business as well as grants for starting a business in rural areas.

Speaking to reporters, Plenković said that demographic revitalisation was the key topic for Croatia due to its ageing population and negative demographic trends of the past 70 years.

He commended the policy of the HZZ, which over the past five years has granted around HRK 5.5 billion for active employment measures, noting that HRK 1.02 billion had been set aside for the "I choose Croatia" scheme in 2022.

The government is expected to adopt a conclusion on that scheme on Thursday, after which the HZZ steering board will make a decision.

Plenković said everyone with a solid business plan would have a chance.

The scheme "I choose Croatia" builds on the self-employment scheme, and under the current rules, a person with a business plan applying for grants can obtain a maximum HRK 130,000 grant to start their own business.

Plenković said that around 85% of people who had applied for those grants had started their own business and were still on the market.

Under the new scheme, the grants would be raised to a maximum HRK 150,000 per applicant, and Croatians who over the past two years were employed for at least a year in some other EU country will be encouraged with an additional HRK 50,000 to return. That makes HRK 200,000 in grants for a person wishing to return to Croatia who applies for the scheme and their business plan is approved by the HZZ.

A similar scheme is envisaged for migrations within Croatia given the current trend of people moving from rural to urban areas, where they often live in smaller housing units, as a result of which they cannot plan more children.

This scheme would be aimed at encouraging people to move from urban to rural areas such as Dalmatian Zagora, Lika, Gorski Kotar, Banovina and Slavonia and would include the same option of self-employment, grants of up to HRK 150,000 and an additional HRK 25,000.

Plenković said that Croatia was catching up with those countries that had developed as democracies for the past 70 years as well as those which joined the EU before it.

"This offers a chance to those who have lately left for some other EU member country, to find a motive, a niche and wish to return. Some will, some won't. The government is here to provide an opportunity," Plenković said.

On prices of energy products

Considering an increase in prices of electricity and natural gas on world markets, reporters asked Plenković what citizens could expect after April 2022, to which he said that the situation was being followed and that there were tools to cushion any significant blow to citizens' living standards.

Asked if freezing those prices was an option, he said that there was enough time until April, reiterating that the government had many instruments at its disposal.

He recalled that the government had responded promptly and capped fuel prices, adding that it had been contacted in that regard by other countries' governments which eventually also capped fuel process.

"Our main concern is citizens' living standards... My job is not to obstruct anything but to constructively help people live better," said Plenković.

Text: HINA

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