Lower income tax rates in Croatia make sense

Even as fiscal deficits balloon, lowering tax rates makes sense

Lowering income tax rates makes sense even as budget deficit and public debt levels rise. Namely, compared to peers and neighbours, Croatia remains a high tax jurisdiction and lower rates may well stimulate revenue growth and improve the business environment
Land titles reform

Land titles reform – Sisyphean task for how much longer?

Land titles reform remains a challenge in Croatia. Is it time to take a different approach and consider a land tax?

Does it make sense to offer foreign investors subsidies?

News that VW has delayed a decision on an investment in Turkey has seen promises of subsidies from nations in South East Europe hopeful of becoming alternative investment locations.

Croatia: Long term factors come into play as GDP growth accelerates

Participation in the EU's single market is driving the integration of local companies into European and global supply chains, gradually increasing absorption of EU is supporting investment, while the reduction in the country's risk profile has seen a return to investment grade status, thus lowering funding costs for the economy. These are all structural, as opposed to cyclical, reasons for optimism Croatia's growth potential.

Speed also kills when making investment decisions

China's Belt and Road Initiative offers a quicker, debt financing path to investments than EU procedures. But EU grants, as long as stringent conditions are met, are a far more sustainable and less risky option for EU member states.