Croatia has become one of the Adriatic region’s most attractive markets for construction, investment, and real estate development. EU membership, Schengen integration, and euro adoption have contributed to a stable, predictable environment for foreign investors — while booming tourism and major public-infrastructure programs continue to fuel strong demand.

The biggest challenge Croatia faces is straightforward: the country does not have enough skilled workers to meet the needs of its rapidly growing construction sector.

This shortage has opened the door for foreign-owned construction companies to enter the market and thrive.

This guide explains exactly how the Croatian system works, what legal steps are required, how foreign investors can get licensed, how to hire workers, and how to scale a construction business effectively across Croatia.

Strong Market Growth

Croatia has been recording strong year-over-year growth in residential construction, commercial development, tourism-related real estate, and public infrastructure. EU structural funds continue to support large-scale projects such as:

• Roads and bridges

• Coastal and port reconstruction

• Energy infrastructure

• Tourism and hospitality development

• Urban renewal and modernization

Because Croatia uses the euro, the financial environment is stable and familiar for international investors.

Severe Labour Shortages

This is the defining feature of Croatia’s construction landscape.

The country lacks enough:

• Carpenters

• Masons

• Welders

• Concrete workers

• Electricians

• Plumbers

• HVAC installers

• Roofers

• Finishing specialists

The domestic workforce simply cannot keep up with demand. To keep projects moving, Croatia increasingly relies on foreign workers — particularly in construction.

This makes foreign-owned companies extremely valuable because they can organize teams, import additional skilled labour when needed, and maintain professional project-management standards.

Professionalism and Reliability

Foreign companies entering the Croatian market tend to bring higher levels of:

• Organisation

• Project planning

• Safety standards

• Communication

• Reliability

Investors, developers, and municipalities take notice — especially those struggling with deadline delays or inconsistent workmanship.

Ability to Scale Quickly

With clear processes and established systems, foreign contractors often outperform local competitors when it comes to:

• Workforce management

• Quality assurance

• On-time delivery

• Multi-trade coordination

Competitive Operational Costs

Operating in Croatia can be more cost-efficient compared to many Western European markets, creating an appealing mix of affordability and reliability.

The Best Choice: Limited Liability Company (d.o.o.)

For 99% of foreign investors, the Croatian d.o.o. is the ideal structure.
It offers:

• Full limited liability

• 100% foreign ownership

• A simple corporate structure

• The legal ability to bid on contracts and hire employees

• Strong credibility with banks and developers

Most construction firms operating in Croatia use the d.o.o. structure.

Alternative: Craft Business (Obrt)

A craft business is only suitable for small-scale solo tradespeople who already have temporary or permanent Croatian residency.
It is not recommended for foreign investors planning to:

• Hire teams

• Scale operations

• Bid on commercial or public projects

Stick with a d.o.o. for anything serious.

Step 1: Clarify Your Scope of Business

Before registering your company, determine:

• What types of construction services you will offer

• Whether you will focus on residential, commercial, industrial, or public-sector projects

• Which services you will perform in-house vs. subcontract

• Which regions you want to target (Zagreb, Split, Zadar, Dubrovnik, Istria, etc.)

Your activity codes and licensing requirements depend on these decisions.

The typical setup includes:

1. Preparing articles of association

2. Notarizing incorporation documents

3. Depositing share capital (minimum approx. €2,500 for a standard d.o.o.)

4. Registering with the Commercial Court

5. Obtaining tax numbers for the company and foreign owners

6. Opening a Croatian business bank account

A straightforward incorporation generally takes 2–4 weeks.

To legally operate in Croatia’s construction sector, your company must be registered with the correct NKD activity classifications, and in certain cases, you must appoint responsible persons with appropriate professional qualifications.

Depending on your scope, this may involve:

• General construction

• Specialised trades (electrical, plumbing, welding, etc.)

• Engineering

• Architectural or supervisory roles

• Energy-efficiency related activities

Croatian construction is regulated by the Building Act and numerous secondary regulations, which define:

• Who can design

• Who can supervise

• Which works require a permit

• Which qualifications are needed

• Required technical documentation

• Safety and environmental standards

Your company must comply with these obligations before performing any regulated work.

In Croatia:

• Building permits are required for most major construction projects.

• Simple, minor, or low-risk works may fall under simplified rules.

• All major applications include technical documentation prepared by licensed engineers or architects.

• Both local authorities and digital platforms are used to process permits.

Your role as contractor is to ensure only permitted works are carried out and to strictly follow all safety and quality rules.

Most construction companies in Croatia use a mixed workforce made of:

• Croatian workers

• EU workers

• Non-EU workers with work-and-residence permits

Key points:

• Employment contracts must follow Croatian labour law

• Social contributions and payroll reporting are mandatory

• Croatia uses a labour-market test system for foreign workers

• Construction is generally treated as a shortage sector

• Non-EU workers must obtain work-and-residence permits

• Some categories of workers require Croatian language testing

Because legal rules evolve constantly, most investors rely on professional HR and immigration support.

A Croatian d.o.o. must meet all statutory obligations, including:

• Corporate income tax

• VAT

• Monthly payroll tax and contributions

• Bookkeeping

• Annual financial statements

• Local city surtaxes (where applicable)

Proper accounting and tax planning is essential to avoid unnecessary costs — especially if you have a foreign holding company or international income streams.

Launching a construction company in Croatia gives you a long list of advantages:

• Growing demand for construction and renovation

• Chronic labour shortages that favour organized foreign contractors

• Stable EU business environment

• Euro currency

• High tourism-driven development

• Strong opportunities in infrastructure and green-energy projects

• Less automation risk — trades remain hands-on

• Regional expansion opportunities across the Adriatic and Central Europe

If you are reliable, organized, and ready to deliver quality, Croatia has an enormous number of opportunities.

Relocation Croatia provides full-service support for foreign investors, including:

✔ Company Formation

• Setting up your d.o.o.

• Preparing corporate documents

• Handling registration and bank accounts

• Obtaining tax numbers

✔ Licensing and Technical Compliance

• Choosing NKD activity codes

• Guidance on construction licensing requirements

• Coordination with licensed engineers and specialists

✔ Immigration & HR

• Work permits

• Residence permits

• Labour-market testing

• Payroll admin and contracts

✔ Market Entry & Long-Term Growth

• Orientation on regional opportunities

• Understanding tenders and project pipelines

• Strategic planning for scaling your workforce

• Ongoing business and legal support

Croatia offers one of the most promising construction environments in all of Southern Europe. Strong demand, limited local labour, and a stable EU environment make it an ideal location for foreign contractors to establish a long-term, profitable presence.

If you want to build, expand, or relocate your construction business into Croatia, you will move faster and safer with expert guidance. Relocation Croatia can help you structure your company, obtain your licenses, hire workers, and navigate every legal requirement — so you can start winning contracts with confidence.