Employer of Record (EOR) in Croatia: How Foreign Companies Can Hire Employees Without Opening a Croatian Entity
TL;DR: A compliant Employer of Record (EOR) in Croatia hires your people through a licensed temporary employment agency, runs payroll and contributions, and ensures full Labour Act compliance while you direct day-to-day work. It’s the fastest, lowest-risk way to build a team in Zagreb, Split, Dubrovnik, Zadar, or fully remote across Croatia — without incorporating locally.
What we handle as the legal employer (EOR):
Drafting and executing Croatian-law employment contracts (definite or indefinite)
Monthly payroll in EUR, with proper tax withholding and statutory contributions
Paid leave, sick leave and benefits administration
Time-and-attendance and overtime compliance under the Labour Act
Mandatory reporting and communications with authorities
Secure employee data handling aligned with GDPR
If needed, work/residence permits for third-country nationals (the EOR acts as employer-of-record for the Single Permit process)
What you keep control of:
Role definition, day-to-day management, performance, tools, targets, and culture. EOR is not outsourcing: your people work for you; we shoulder the legal/employer burden.
Licensed agency model only. In Croatia, “EOR” is delivered via a licensed Temporary Employment Agency. The agency is the worker’s employer and “leases” (assigns) that worker to your company (the “user”). This is a regulated model — not informal co-employment.
Equal treatment. Agency workers must receive no less favorable pay and core conditions than comparable employees of the user company.
Assignment duration. You generally cannot engage the same agency worker for the same role for longer than three years in a row (brief breaks don’t reset the three-year period).
Paper trail. There are two key documents: (1) an employment contract between the agency (EOR) and the worker, and (2) a worker assignment agreement between the agency and the user company specifying role, place of work, schedule, and assignment length.
1) Croatian Nationals and EU/EEA Citizens
Straightforward onboarding under Croatian labour rules. The EOR issues the contract, registers the employee, and starts payroll.
2) Third-Country Nationals (Non-EU/EEA)
The EOR sponsors the Single Permit (temporary stay and work) where eligibility is met. Certain roles may require a labour market test via the Croatian Employment Service; others are exempt. The permit ties the worker to the EOR as legal employer; assignments are then made to your company.
3) Short-Term Projects & Surges
For spikes in workload or pilots in Zagreb or Split, a fixed-term contract and time-boxed assignment are typical. For longer horizons, indefinite employment can be combined with rolling assignments (still respecting the three-year cap per role at the same user).
Payroll, Tax, and Benefits — What to Expect
Pay cadence: monthly, in EUR (Eurozone).
Statutory contributions:
Employer: 16.5% health insurance (HZZO).
Employee: 20% pension (15% pillar I + 5% pillar II). Withheld by the EOR and remitted.
Sick leave: employer covers the first 42 days (typically ≥70% of base). Extended sickness is covered/reimbursed via HZZO.
Minimums: National minimum wage is refreshed annually (for 2025 it is €970 gross/month for full-time).
Bonuses and 13th salary: voluntary unless agreed or required by collective agreement.
Meal/transport allowances: common as non-taxable benefits within government thresholds (structured by payroll).
We’ll model total cost of employment (TCE) for each role — base, allowances, employer social contributions, and our EOR fee — so your finance team sees an apples-to-apples comparison with other countries.
Working time: standard 40 hours/week.
Overtime: permitted for business necessity; typical caps ≤10 hours/week and ≤180 hours/year (extendable to 250 via collective agreement). Overtime premiums are set by contract/policy or collective agreement.
Paid annual leave: minimum four weeks; many employers offer more, plus Croatia’s public holidays.
Probation: commonly up to six months; early termination during probation still follows statutory notice.
Notice periods: scale with tenure (e.g., 2 weeks under one year, increasing with service; additional weeks for older employees), capped overall.
Health & safety: user companies must ensure safe working conditions for agency workers just like for their own employees.
Market entry without entity. Run sales, CX, or ops in Zagreb now; create a subsidiary later.
Distributed teams. Hire remote developers in Split or support staff in Zadar/Dubrovnik under one compliant umbrella.
Interim coverage. Use fixed-term assignments to bridge a project or pilot.
Risk control. Avoid fines for misclassified employment, underpaid contributions, or unlicensed labour leasing.
Three-year assignment rule. Plan rotation or conversion (e.g., to your own entity later) if you’ll keep the same person in the same role beyond that horizon.
Role clarity. Define duties, working time, and place of work in the assignment agreement.
No “shadow employment.” You can’t directly payroll staff in Croatia without a Croatian employer or entity; EOR solves this, legally.
Data protection. HR data flows sit under GDPR — we align contracts, processes, and systems accordingly.
You receive one monthly invoice per worker covering:
gross salary, 2) employer costs (statutory contributions), and 3) a fixed EOR fee for employment administration and compliance. We then pay the employee and the authorities on schedule. Clear, auditable, and clean for your books.
Role & comp agreed; we confirm eligibility (including permit path if needed).
Employment contract (Croatian/English) + assignment agreement drafted.
Employee registered; payroll profile created; benefits set.
Day-one ready with compliant documentation and timekeeping.
An Employer of Record in Croatia gives you immediate, compliant access to talent — without the delays and ongoing admin of opening a Croatian entity. You lead. We handle the employment, payroll, and legal spine so your team can get to work in Zagreb, Split, Dubrovnik, Zadar, or anywhere in Croatia.
Ready to hire in Croatia? Book a paid consultation with Relocation Croatia and we’ll scope a clean, compliant EOR plan tailored to your roles, timelines, and budget.