On 25 November 2020, the Croatian Parliament adopted the new Aliens Act, according to which the annual quota for the employment of foreigners will no longer be determined.  The Act also more clearly prescribes the provisions related to the entry, stay and work of foreigners in Croatia.

EMPLOYMENT OF FOREIGNERS

According to the new Act, the Government will no longer decide on the annual quota of work permits for foreigners, but employers will be obliged to request the Croatian Employment Fund to conduct a labour market test before applying for a residence and work permit for foreigners. In order for a foreigner to be granted with a residence and work permit in Croatia, the labour market test should confirm that there are no unemployed persons in Croatia who meet the requirements of the employer. The process of permit issuance, including the labour market test, will take a maximum of 30 days. According to the new Act, a new institute of long-term visa (D visa) is introduced, in cases that a third-country national is granted temporary residence on the basis of work, family reunion, study, research and high school education. 

DIGITAL NOMADS

The law also prescribes the possibility of regulating temporary residence for so-called digital nomads, i.e. foreigners who perform work digitally for foreign employers. The expected changes to the tax provisions as well as the provisions on health insurance are expected by the end of this year. From the tax aspects, the work of digital nomads should not be subject to taxation, i.e. payment of personal income tax. A third-country national will be granted temporary residence if the following conditions are met:

  • proof of the purpose of the temporary stay;
  • has a valid foreign travel document;
  • has means of subsistence and health insurance;
  • enclose with the request for the approval of the first temporary stay a proof that he/she has not been convicted of criminal offences from his/her home country or the country where he/she resided for more than one year immediately before arriving in the Republic of Croatia, unless the worker, student, researcher or person moved inside the company is using mobility from another EEA Member State;
  • the person has no ban on entering and staying in the Republic of Croatia or a warning has been issued in the SIS system for the purpose of banning entry; and
  • does not pose a threat to public order, national security, or public health.

The Alien Act will enter into force on 1 January 2021.