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The Buzz in Croatia: Interview with Mara Terihaj Macura of Kallay & Partners

The Buzz in Croatia: Interview with Mara Terihaj Macura of Kallay & Partners

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"The Croatian government is a bit under fire right now for not implementing stricter measures to deal with the uptick in Covid cases,” reports Kallay & Partners Partner Mara Terihaj Macura. Still, she concedes it’s a difficult problem. “There are still businesses that are open and operating despite the numbers being higher now than they were in the spring – but according to the economic experts another lockdown would be disastrous for the economy, so it’s difficult to find the balance.” 

In an effort to stimulate the economy, Croatia’s government has proposed to amend the tax regime by lowering the tax burden for individuals and empowering the authorities to become more stringent in finding those that evade and avoid paying their dues. “Amendments of four laws have been proposed – the VAT, the fiscalization in cash transactions, the income tax, and the profit tax frameworks are subject to amendments,” Terihaj Macura says, in an effort to provide tax relief. According to the Croatian government, “the volume of expected changes should amount to around HRK 2 billion. In addition, banks will get more incentives such as write-offs for loans.” 

The total relief for Croatian citizens, Terihaj Macura reports, is expected to be around HRK 10 billion (around EUR 1.32 billion). “Of course,” she says, “the government is poised to apply a more rigorous treatment of cases where there is suspected evasion or avoidance, for example where there is a large discrepancy between assets and reported income.”

Terihaj Macura says that there is a “new Foreigners Act in the works that is designed to create a more lenient framework for foreign nationals working in Croatia.” She says that the new act, currently in parliamentary proceedings, should liberalize the labor market. 

Finally, the EU is expected to funnel relief and aid funding to the country in order to keep key projects moving forward. “The reconstructions of the Dubrovnik Airport and the Peljesac Bridge are still underway,” Terihaj Macura says, “co-financed by the EU in an amount of almost HRK 4.5 billion.” That’s not all. “Also, a new waste management center is to be constructed in the northwestern part of Croatia – the tender documentation for this EUR 60 million project is being prepared as we speak and it will be 70% funded by the EU.” She says that this new plan falls within the new energy policy the country has adopted, which focuses heavily on green energy and renewables.

Croatian Knowledge Partner

Čipčić-Bragadin Mesić & Associates is one of the leading law firms in Croatia that serve companies, credit & financial institutions and public entities. We have been recommended and recognized as the legal experts and service leaders by many leading international legal guides for more than 15 consecutive years. With roots dating from 1928. we now probably have more tradition, experience and market presence than almost any other law firm in Croatia. We work closely with the leading international law firms and consultants so we’re able to manage complex, cross-border projects and deals seamlessly and successfully. Around 85% of our clients are international enterprises doing business in Croatia. List of our clients include some of the world-renowned companies such as Amazon Europe Core, China Machinery Engineering Corporation, Tate & Lyle, Nafta a.s., Unilever Croatia, Unilever Hungary, Lenovo, Innoenergy CE, Flixmobility, Flixbus CEE South, Okoenergie Group, CTC Holding, Bunge Limited, Chipita, Rolls-Royce, Canvas Holidays, Vacalianselect, Redgate Software, Red gate Investment, Yahoo!, Aston Martin Lagonda, Domino Printing UK, Domino Printing Sciences, Goldman Sachs, Deutsche Bank, Barclays Bank, HSBC, State Street Bank, Citigroup Global Markets, Credit Suisse, Bank of America Merill Lynch, Standard Chartered, Och-Ziff Capital Management, Amundi Asset Management, Altima International, Red Arc Global Investments, SMBC Nikko Capital Partners, Royal Bank of Scotland, Morgan Stanley International, J.P. Morgan group, Allianz Global Investors, Schroders, Macquarie Bank, Digital Finance International, Winton Capital Management, Citibank, Invesco Asset Management Österreich, Croatian Pension Investment Company, Unicredit Bank AG etc. We enjoy learning about our clients’ businesses and want to understand them completely so we can provide the best possible and complete service.

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