As of January 1, 2026, Croatia has enacted several significant legal changes impacting foreign investment screening and fiscalization processes. These reforms aim to enhance economic transparency, align with European Union regulations, and modernize administrative procedures.
Law on Foreign Investment Screening
The Zakon o provjeri stranih ulaganja (Law on Foreign Investment Screening) took effect on November 13, 2025, and its implementation continues into 2026. This law applies to all companies and traders based in Croatia, regardless of their legal form, that are acquiring or are targets of foreign investments in sectors affecting security, public order, or strategic industries such as energy, transport, telecommunications, defense, finance, and critical technologies.
Key provisions include:
- Notification Requirement: Foreign investors must notify the Ministry of Finance before acquiring significant stakes (10% or more) in companies operating within the specified sectors.
- Review Process: The Ministry reviews each investment and can approve, impose conditions, or block it if deemed a risk, with input from the Commission for the Screening of Foreign Investments. Decisions are to be issued within 120 days, extendable to 150 days in exceptional cases.
- Retroactive Screening: Investments made before the law's enactment are subject to retroactive screening, to be completed within three years.
This legislation aligns with EU Foreign Direct Investment (FDI) screening rules, allowing Croatia to share information with other EU countries and the European Commission.
New Fiscalization Law – Fiscalization 2.0
The updated Zakon o fiskalizaciji (Law on Fiscalization), known as Fiscalization 2.0, introduces a modernized system focused on digital reporting and mandatory electronic invoicing. Effective from September 2025, with full implementation in 2026, the law aims to streamline tax reporting and reduce administrative burdens.
Key changes include:
- Mandatory Electronic Invoicing: From January 1, 2026, VAT-registered businesses must issue, send, receive, and fiscalize electronic invoices (eInvoices) for B2B and B2G transactions. By January 2027, all businesses must issue eInvoices.
- Inclusion of Digital Payments: Fiscalization now covers invoices paid by bank transfer and digital payment services such as PayPal, Google Pay, and Stripe.
- Standardized Data Formats: Introduction of standardized data formats and classification codes to ensure consistency and compliance.
These reforms are expected to reduce administrative burdens and lower long-term costs for businesses by replacing several older reporting forms and simplifying tax compliance processes.
Implications for Businesses
Businesses operating in Croatia should take the following steps to ensure compliance:
- Review Investment Plans: Companies involved in sectors affected by the Foreign Investment Screening Law should assess their investment strategies and ensure timely notification to the Ministry of Finance.
- Upgrade Systems: Businesses must implement or upgrade software capable of generating and managing eInvoices to comply with Fiscalization 2.0 requirements.
- Consult Professionals: Engaging with legal and financial advisors can help navigate the complexities of these new laws and ensure full compliance.
For more detailed information, refer to the original report by Expat in Croatia.
