And the benefits to UK companies exporting there are:<\/p>\n
- \n
- about 50% of population speak English<\/li>\n
- increasingly sophisticated consumers<\/li>\n
- modern distribution channels<\/li>\n
- equal rights for domestic and foreign private and legal entities<\/li>\n
- guaranteed free transfer of capital and free profit repatriation to investors<\/li>\n
- average gross wages are high in comparison with neighbouring counties<\/li>\n<\/ul>\n
Exporting to Croatia isn’t without its problems, while the business climate \u00a0in the country\u00a0is improving, you’ll need to be mindful of challenges including:<\/p>\n
- \n
- bureaucracy<\/li>\n
- lack of clarity and transparency in tax administration<\/li>\n
- tax burden<\/li>\n
- corruption<\/li>\n
- slowness of the Croatian judicial system<\/li>\n<\/ul>\n
The UK is Croatia’s 18th largest supplier, and the top UK exports to Croatia are:<\/p>\n
- \n
- Boilers\/machinery<\/li>\n
- Vehicles<\/li>\n
- Electrical, electronic equipment<\/li>\n
- Pharmaceutical products<\/li>\n
- Essential oils, perfumes, cosmetics, toiletries<\/li>\n
- Plastics and articles thereof<\/li>\n
- Miscellaneous edible preparations<\/li>\n
- Ships, boats and other floating structures<\/li>\n
- Optical, photo, technical, medical, etc apparatus<\/li>\n
- Beverages, spirits and vinegar<\/li>\n<\/ul>\n
If you\u2019re doing business in Croatia, you\u2019ll need a reliable and cost-effective conference call provider to help keep in touch when travelling isn\u2019t an option. Here\u2019s\u00a0How to set up a conference call between the UK and Croatia<\/a>.<\/em><\/p>\n
And remember, you can now screen share and video conference, using Crankwheel<\/a>.<\/p>\n
Tax and customs<\/h2>\n
Tax<\/h3>\n
The UK signed a double taxation agreement with Yugoslavia, so tax isn\u2019t paid twice \u2013 once in each country \u2013 on exported goods and services, and this still applies in Croatia.<\/p>\n
The following tax rates currently apply in Croatia:<\/p>\n
- \n
- VAT (known as PDV) is charged at 25%.\u00a0Certain product categories are zero rated. A 10% rate is charged for tourism activities<\/li>\n
- Corporate tax is charged at 20% on profits<\/li>\n
- Income tax between 0% and 45%.<\/li>\n<\/ul>\n
Customs<\/h3>\n
The internal EU single market allows for the free movement of goods and services without any import duties being applied. For more information on customs procedures, visit\u00a0 Customs Administration of the Republic of Croatia<\/a>.<\/p>\n
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