Key Considerations for Foreign Investors When Acquiring Croatian Companies Introduction The Croatian market, as part of the EU single market, continues to attract foreign direct investment across a range of industries—particularly tourism, real estate, energy, ICT, and manufacturing. According to the World Bank and the American Chamber of Commerce (AmCham), foreign investment in Croatia is experiencing strong growth since 2024, with a notable shift in its structure — capital is increasingly moving away from the banking sector and into tourism and the IT industry. In the first quarter of 2024, foreign investors injected over one billion euros into the Croatian economy. If this trend continues, it is expected to surpass the 2021 record of approximately four billion euros. From 1993 to date, Croatia has received more than 46 billion euros in foreign capital, primarily in finance, manufacturing, and real estate — and over time, the country is increasingly perceived as an attractive investment destination.

Civil and Criminal Liability in the Context of Piercing the Corporate Veil Introduction Although company members and management board members are generally not liable for the obligations of the company, there are legal provisions in place to protect creditors from the abuse of this rule. Both company members and management board members may be held liable for the company’s obligations, albeit on distinct legal grounds. Liability applies equally, irrespective of whether the individuals are domestic or foreign persons, as their residency status has no bearing on the scope or nature of their potential liability. Creditors have at their disposal additional legal remedies beyond the liabilities provided for in the Companies Act and the Criminal Code. Notably, various forms of security instruments can be used to prevent or mitigate malicious conduct by debtor companies and their members or management. Furthermore, creditors may initiate legal proceedings to annul legal transactions made to their detriment, thereby effectively reversing certain forms of abuse by company members or management board members. In conclusion, creditor protection in the Republic of Croatia is broad and comprehensive, offering multiple legal instruments to safeguard against malicious and fraudulent conduct within companies. It is also evident that the limitation of liability for company members and management board members is not absolute.