Contract law in Croatia is governed by the Civil Obligations Act (Zakon o obveznim odnosima). The system is clear, modern, and predictable, built around several foundational principles.

Freedom of Contract – With Boundaries

Parties may structure their agreements freely, as long as the contract does not:

• Violate mandatory Croatian law

• Contradict public order or good morals

• Attempt to waive rights that legally cannot be waived

If a clause violates Croatian law, that clause can be invalidated.

Equality of Parties

All contracting parties are considered equal before the law. If a contract is grossly unfair or concluded through pressure, deception, or exploitation, courts may annul it.

Good Faith and Fair Dealing

Parties must act in good faith during negotiation, execution, and termination.
This means:

• No concealing essential facts

• No deceptive behavior

• Cooperating to fulfill the contract’s purpose

Bad-faith conduct can result in damages or annulment.

Written Form Requirements

Contracts may be oral or written, but certain agreements must be written or notarised, including:

• Real estate purchase agreements

• Long-term leases

• Corporate documents

• Certain agency or financial agreements

Even when not required, written contracts are crucial for foreigners.

Foreigners should insist on written contracts when dealing with:

• Employment

• Independent contractor agreements

• Real estate rental or purchase

• Business partnerships or shareholder agreements

• Construction or renovation

• Vehicle purchases

• Long-term service contracts

Written contracts ensure enforceability and protect you in case of disputes.

You Need Legal Permission to Work

Non-EU/EEA/Swiss citizens may work only if they hold:

• A residence and work permit, or

• A work registration certificate (in limited cases)

EU/EEA/Swiss citizens must still register their residency but generally do not require work permits.

A contract alone does not legalise your stay or work.

Employment Contracts

Employment agreements must be written and include:

• Job description

• Salary terms

• Working hours and conditions

• Duration (fixed-term or indefinite)

• Notice periods and termination rules

• Paid leave entitlements

• Employer’s obligation to register social contributions

Contractors, Directors, and Company Owners

If you work as a contractor, director, or business owner, your residence/work status must still match your actual work.
Authorities may:

• Reclassify contractors as employees

• Impose back taxes and contributions

• Issue fines to both parties

Make sure the contract reflects the reality of the relationship.

Croatia is popular for real estate investment, but the rules differ by nationality and property type.

Buying Property

Foreign individuals and companies can buy Croatian real estate, but with conditions:

• EU/EEA/Swiss citizens
  May buy residential property and, since 2023, agricultural land on the same terms as Croatian citizens.

• Non-EU citizens
  Often require Ministry of Justice approval based on reciprocity and may not buy agricultural land directly.
  In those cases, foreigners typically create a Croatian company to purchase.

A valid purchase agreement must be written, signed before a notary, and registered in the land registry.

Renting Property

A proper lease should specify:

• Property details

• Rent and deposit

• Duration and renewal

• Utility responsibilities

• Termination conditions

• Rules for rent increases

Authorities may require notarisation if the lease will be used for residency purposes.

Agricultural & Coastal Land

There are special rules:

• EU/EEA/Swiss citizens can purchase agricultural land.

• Non-EU citizens generally cannot buy agricultural land as individuals.

• Protected coastal and forest areas may have additional restrictions.

Always perform legal and cadastral checks.

Contract Language

Private contracts don’t have to be in Croatian, but for:

• Notarised documents

• Bank procedures

• Court filings

• Residency applications

Croatian or a certified Croatian translation is expected.

Foreigners should insist on bilingual Croatian–English contracts or a court-certified translation.

Notary Requirements

Many contracts require certified signatures or full notarisation.
The notary verifies:

• Identity

• Understanding of the contract

• Legal compliance

Certified Translations

Court-appointed interpreters prepare official translations used for:

• Bank documentation

• Real estate transfers

• Corporate filings

• Court procedures

Croatia offers a contract-friendly environment, but foreigners often get into trouble when relying on:

• Handshake deals

• Poorly written templates

• Incorrect assumptions about work or residency

• Contracts they cannot read

• Real estate agreements without proper checks

With well-drafted contracts and professional guidance, you can safely work, invest, and live in Croatia.

Relocation Croatia can prepare tailor-made contracts for employment, property, business, and residency-based purposes — fully aligned with Croatian law and your long-term goals.