ZAGREB, 17 Feb 2022 - The DIV Group, a leading Croatian manufacturer of steel products, on Thursday welcomed the European Commission's decision to impose definitive anti-dumping duties on imports of certain iron or steel fasteners originating in China.

Following the European Commission's publication of the relevant regulation in the Official Journal, the Zagreb-based group says that the anti-dumping duties will pave the way for fair competition and create an opportunity for the group to double its exports of standard bolts to above 60 million euros annually.

This will also allow further investment of €100 million annually, DIV said.

DIV recalled that the Commission initiated an investigation following a complaint lodged by the European Industrial Fasteners Institute on behalf of producers representing more than 25% of the total Union production of iron or steel fasteners about the dumped imports.

The complaint contained evidence of dumping and of resulting material injury that was sufficient to
justify the initiation of the investigation.

As a result of the investigation, the EC  published the regulation "imposing a definitive anti-dumping duty on imports of certain iron or steel fasteners originating in the People’s Republic of China."

DIV said that a similar regulation had been in force in 2013 and at the time the group had invested €55 million in its plants in the town of Knin and created about 500 jobs. The regulation was rescinded in 2016.

The new regulation is in place after six years of our efforts to maintain our status of a viable producer despite unfair competition, DIV said.

According to information on DIV's website, the Knin branch of DIV GROUP Ltd. is the largest bolt factory in the European Union, and its products are delivered to European countries, America and South Africa.

In Knin, the company has 23 production lines, 14 thread-rolling lines, 3 lines for the heat treatment of screw material with a capacity of 3 tons per hour each, 2 lines for surface protection by galvanizing with a capacity of about 5 tons per hour, and a semi-automatic packaging of bolts with secured transport communication by rail and road, according to DIV's website.

For more, check out our business section.

ZAGREB, 17 Feb 2022 - Bus operators at the Croatian Employers' Association on Thursday voiced regret that the government's scheme designed to alleviate the impact of rising energy prices did not include the passenger transport sector, asking to be included in the scheme and for a lower VAT on their services.

The bus operators warned that they had been affected by rising energy prices as well as by the negative impact of the coronavirus pandemic on group travel.

"The government scheme has reduced VAT on gas, food, agricultural products and sporting and cultural events, but not on passenger transport. The VAT rate on passenger transport in Croatia is among the highest in Europe, and in addition to paying some of the highest fuel prices, due to the highest VAT rate, Croatian citizens do not have access to a much cheaper transport alternative," they said.

Their president Hrvoje Meštrović said that many European countries had a lower VAT rate on passenger transport also before the pandemic and energy price hikes.

He noted that countries comparable to Croatia, like Slovenia, Hungary and Austria, as well as a vast majority of other EU countries, all had lower VAT rates of below 10% on public passenger transport because they recognised its importance.

For more, check out our business section.

ZAGREB, 17 Feb 2022 - The INA Group registered a net profit of HRK 1.31 billion in 2021, after a loss of HRK 1.14 billion in 2020, the leading Croatian oil and gas group said in a financial statement on Thursday.

INA's net sales revenue grew 51.5% on the year to reach HRK 22.4 billion in 2021.

The company's CCS EBIDTA excluding special items reached HRK 3.03 billion, up by 70% from 2020.

"In 2021 the macro environment for oil and gas industry has improved thanks to the easing of restrictive measures and rising hydrocarbon prices. In such environment Exploration and Production once again spearheaded the recovered result, although the production natural decline continues in line with the mature portfolio. The other segments further supported the results, primarily Retail due to improved fuel and non-fuel sale, also partially due to tourist season, which was better than expected," the company's management board chair, Sandor Fasimon, was quoted as saying.

The financial statement notes that the hydrocarbon prices had doubled compared to 2020.

This price increase helped the Exploration and Production segment to be "the main contributor to the results with EBITDA excluding special items of HRK 2.5 billion, despite natural decline of production on mature fields."

"Refining and Marketing including Consumer services and Retail CCS EBITDA reached HRK 0.9 billion on the back of better Retail sales both in fuel and non-fuel segments."

Investments rise

Investment activities increased throughout the segments compared to 2020 with CAPEX level of HRK 1.6 billion, of which roughly half was spent in Refining and Marketing. The main strategic investment, Rijeka Refinery Upgrade Project continues with focus on construction works and equipment delivery to the site.

INA said it had successfully issued a HRK 2 billion bond on the domestic market in December 2021, "creating a solid financial base for the intensive investment cycle ahead."

"In time of changes in the energy sector, INA is committed to diversifying its portfolio and assisting the green transition, regardless of our core business. Two new solar power plants are going to be built at Virje and Sisak, which is an important step in the company’s green electricity production," the statement said.

For more, check out our business section.

ZAGREB, 17 Feb 2022 - Croatia's Minister for Foreign and European Affairs, Gordan Grlić Radman, on Thursday thanked the Bavarian State Minister for Federal Affairs and Media, Florian Herrmann, for the assistance this German province had extended to the earthquake-hit Sisak-Moslavina County.

"We consider this gesture a sign of great friendship and solidarity between Croatia and Bavaria," Grlić Radman said after their meeting in Munich.

Last year, Bavaria sent to Croatia over 70 tonnes of construction material, dozens of container homes, packages for children and other aid to help it deal with the aftermath of strong earthquakes that struck Sisak-Moslavina County, central Croatia on 28 and 29 December 2020.

The two ministers said that Croatia and Bavaria fostered very close political, economic and cultural ties, and Grlić Radman noted the role of the sizeable Croatian community in the largest German province as an important factor in maintaining bilateral relations.

Herrmann, a member of the Christian Social Union, reiterated Bavaria's support for Croatia's aspirations to join the Schengen area and the euro zone. Grlić Radman informed him about the situation in the Western Balkans, notably in Bosnia and Herzegovina where talks on the reform of electoral legislation have reached an impasse.

Grlić Radman will talk about this matter later in the day at a panel at the 57th Munich Security Conference. The conference formally opens on Friday, and Croatian Prime Minister Andrej Plenković is due to attend on Sunday.

Apart from Grlić Radman and Herrmann, the panel on the Western Balkans will also be attended by the international community's High Representative to Bosnia and Herzegovina, Christian Schmidt, US Special Envoy Gabriel Escobar and Bosnia and Herzegovina's Foreign Minister Bisera  Turković.

 For more, check out our politics section.

ZAGREB, 17 Feb 2022 - Croatia's agricultural production has not contracted, as data for the first 11 months of 2021 show that both exports and imports increased considerably, with exports increasing faster, Agriculture Minister Marija Vučković said in parliament on Thursday.

"According to estimates by the national statistical office, Croatia's agricultural output grew at a rate of 8.1% in 2021," said the minister, stressing that the production had been growing for the five past years.

She addressed parliament during the presentation of the government's agriculture strategy up to 2030.

In response to harsh criticism from opposition lawmakers about a deficit in the farm sector, Vučković said that such gap could not be narrowed "with a magic wand" and could be reduced only through investment in boosting competitiveness and productivity.

The plan is to increase agricultural production from HRK 20 billion to HRK 30 billion annually by 2030, which would imply average annual growth of between 4% and 4.5%.

Vučković recalled that the government's €640 million support package to cushion the impact of energy price rises includes a €33.3 million (HRK 250 million) set of measures to help farmers and fishermen deal with increased energy prices.

The HRK 250 million aid scheme includes HRK 200 million for farmers and HRK 50 million for fishermen and will cover 88,000 family farms and 2,000 fishermen.

For more, check out our politics section.

ZAGREB, 17 Feb 2022 - Croatia will be able to use money from the European Solidarity Fund for earthquake relief until June 2023, which is one year longer than the initial 18 months, Prime Minister Andrej Plenković and the European Commission President, Ursula von der Leyen, said after they met in Brussels on Thursday.

The commission will approve the use of EUSF for earthquake reconstruction in Zagreb until June 2023, which has been adjusted to the period for the use of the allocation because of the earthquake in Banovina and progressive damage caused, Plenković tweeted on Thursday.

Von der Leyen tweeted a similar message

“Glad to meet Andrej Plenkovic today. We discussed reconstruction work supported by the EU after the Zagreb and Petrinja earthquakes. Given the exceptional circumstances, the Commission will look favorably at the request to align deadlines for absorption of EUSF funds to June 2023," tweeted von der Leyen.

Croatia was granted €68.37 million for earthquake relief which according to the provisions of the European Union Solidarity Fund can be absorbed until June this year but that has now been extended for another year after Plenković met with von der Leyen.

We appreciate that the Commission has taken into account the specific situation Croatia was faced with after the two devastating earthquakes that struck this area while we were simultaneously dealing with the COVID-19 pandemic, which is a force majeure, Plenković added.

For more, check out our politics section.

February 17th, 2022 - The storytelling workshops are designed to help kids develop their language skills

Staying in Rijeka long-term and looking for activities for your little ones? The American Corner Rijeka at the Trsat branch of Rijeka City Library is hosting a series of storytelling events named Story Garden. The workshops will be held in English and are intended for kids aged 5-6.

The first Story Garden event is scheduled for Wednesday, February 23rd with a 6pm start. Six workshops will be held, each 45 minutes long, taking place each Wednesday at 6 pm until March 30th.

Children aren’t required to have an active knowledge of English to partake in the storytelling events, as the workshops were designed to help kids learn and develop their language skills through an active but relaxed interaction that’s appropriate for their age.

Applications are required to attend the workshops. Parents can send an email to This email address is being protected from spambots. You need JavaScript enabled to view it., message the American Corner Rijeka on Facebook, or apply directly at the library counter in Trsat. 

Participation is free for all members of Rijeka City Library.

American Corner Rijeka, supported by Public Affairs Office at USA Embassy in Zagreb, is a part of the world-wide network of library spaces dedicated to American culture and lifestyle. The American Corner at the Rijeka City Library was devised as a lively library corner hosting a large variety of activities, information resources and tech gadgets for everyone to test. A place to learn and play!

Rijeka City Library - Gradska knjižnica Rijeka

17 February 2022 - While retiring abroad may be a dream for some, it is not an easy decision to make especially when considering financial implications such as taxes. Depending on what country you are moving from, you may even face double taxation. Here are some useful takeaways to help you make a more informed decision before relocating to Croatia.

The information provided here is for general informational purposes only. If you require specific expertise on your current tax situation, please consult a specialized accountant or contact the Croatian Tax Administration.

Figuring out taxes can be notoriously confusing and frustrating. Image: Pexels

What is double taxation?

Briefly, double taxation is the imposition of taxes on the same income by multiple jurisdictions.

It takes on 2 forms:

1. Corporate double taxation: Taxes are imposed on both profits and dividend payouts; or
2. International double taxation: Taxing of the same income in the country where the income is derived, and by the country where the individual is now residing.

This article will focus more on the 2nd taxation form, international double taxation, and whether there are available relief mechanisms in place between Croatia and your country that mitigate this issue when it comes to your pension payouts.

All information presented in the following sections from the Croatian Ministry of Finance and Tax Administration.

Conditions for tax residency in Croatia

Tax residency status in Croatia is in line with the OECD model and is determined according to length of stay in the country annually. The conditions are as follows:

• If you reside in Croatia for 183 days or more out of the year, you are considered a tax resident
• If you own or lease property for a continuous period of 183 days in 1 or 2 calendar years, you are also considered a tax resident. It is not mandatory that you live on this property
• If you own more than 1 property in Croatia, the place where you spend the most time will be considered your place of residence

Tax treaties with Croatia

Double tax avoidance agreements. Image: Pexels

If you do qualify as a tax resident of Croatia, there may be Double Tax Avoidance Agreements (DTAAs) in place that outline your tax responsibilities. The Croatian Ministry of Finance outlines all countries that have standing agreements here.

These bilateral agreements do not completely exempt an individual from filing or paying taxes. Rather, they contain a series of articles that outline each country’s stand on income and capital taxes.

Specific articles, and thus tax conditions, differ depending on the agreement made between Croatia and the contracting country. Here are some examples from the agreements signed between Croatia-United Kingdom, and Croatia-Canada.

United Kingdom (UK) and Northern Ireland (NI)

Croatia and the UK and NI established a DTAA in 2016. As a retiree of either the UK or NI, Article 17(1) of the agreement specifically outlines that if you are a UK citizen but reside in Croatia, pensions and other similar remunerations (e.g. annuities) are only taxed in Croatia.

However, in the case of a lump sum payment derived from a UK pension scheme, this amount will be subject to taxes in the UK, and only in the UK.

If you’re unsure of whether the income you’re receiving is considered a pension, the agreement defines pensions as financial vehicles registered under Part 4 of the Finance Act 2004.

You are also obligated to declare foreign income to the Croatian Tax Administration even if you have already paid taxes abroad.

Canada

Croatia and Canada established a DTAA in 2000. According to Article 18, taxes on pensions and annuities may be levied by both Canada and Croatia, but with limitations. Article 18(2) states that the first CAD$12,000 or the equivalent amount in Croatian kuna is tax exempt. Taxes levied on the excess amount should not exceed 15%.

Canadian annuities paid out to a retiree residing in Croatia may also be subject to Canadian taxes, capped at 10% of the portion that is subject to taxes. This limitation does not apply to lump-sum payments arising on the surrender, cancellation, redemption or sale of an annuity.

Types of pensions that will either be taxed by Canada or Croatia include war pensions, social security and alimony.

Citizens of Canada who receive a pension but reside in Croatia are not obligated to report it to the Croatian Tax Administration. Due to international data exchange between the countries, the Croatian Tax Administration can obtain necessary information directly from the Canadian Revenue Agency.

What if Croatia has no double tax avoidance agreement (DTAAs) with my country?

In the countries where there is no DTAA with Croatia such as Australia and the United States (U.S.), on top of being taxed by your country Croatia will also levy taxes on global income which may include pensions and capital earnings.

The thresholds for Croatian income tax are:

• 20% for up to 360,000 kuna (€47,804) annually
• 30% for more than 360,000 kuna annually

So, what does this mean for those wishing to retire in Croatia? Let’s consider American citizens wanting to retire in Croatia.

Example

Although negotiations between the two countries have been going on for over 25 years, Croatia is still the only European Union nation that does not have a DTAA with the U.S.

This means that depending on where you receive your pension from, such as social security, 401(k)s, Roth accounts, private pension plans or even passive income, these distributions may be subject to tax from both the IRA as well as Croatian tax administration.

Bob. Image: Pexels

Let’s consider Bob. Bob is single, aged 65, and is thinking of retiring in Croatia. He has made steady pre-tax contributions to his 401(k) over the years and now has US$750,000. This is also Bob’s only source of pension. He decides to withdraw US$25,000 annually for his retirement in Croatia, which will be considered his retirement income.

Assuming as of 2022, he is filing taxes under “Single Filer”. The IRA will impose a 12% tax on Bob’s ‘income’ of US$25,000, which means Bob will pay a total of US$3,000 to the IRA. Meanwhile, the Croatian Tax Authorities will further impose a 20% ‘income’ tax on US$25,000, amounting to US$5,000 in taxes. This brings the total amount of taxes on Bob’s pension to US$8,000 annually and he ‘pockets’ US$17,000.

You can also use the IRS's Interactive Tax Assistant to help you determine whether some of your income may be eligible for the exclusion.

Although taxes may put a dent in your pension payout, do weigh the benefits of living in Croatia without necessarily having to make significant lifestyle changes. Or better yet, make full use of the 90-day visa free travel to do a “trial run”, and experience a slice of what retirement may look like here.

Check out the first part of the retiring in Croatia as a non-EU national series HERE.