Croatia Economic Overview-

Croatia was the second most industrialized and prosperous area before the break-up of Yogoslovia. Croatia is a little smaller than the State of West Virginia. Before the break up of Yugoslavia, the country welcomed about 10 million visitors a year. Tourism is projected to grow by 6.9% annually, even though the numbers are still more than 30% below pre-conflict levels.

Croatia became a member of the IMF in 2000 and experienced economic growth by 2.9% in 2000, 3.8% in 2001, 5.2% in 2002, 4.5% in 2003,  and more growth is expected in years to come.

Croatia’s commodities for export include chemical and petrochemical products, transport equipment, textiles and food products. Demand for Croatia’s exports are increasing, and the main partner countries include Italy, Bosnia, Germany, Herzegovina, Slovenia and Austria. In 2003, exports from Croatia estimated at $6.35 billion.

The construction industry in Croatia is also booming with new buildings including vacation complexes, roads and highways being built. This construction should help the tourist industry re-grow. Growth for this sector was estimated 12.8% in 2003.

Investors are flocking to Croatia. The new government has granted the same rights to foreign investors as to local investors, and the beautiful coastline of Croatia may be on its way to becoming the next French Riviera.

Even though prices of property have begun to climb again, overall the price is still 50% below the prices of the 1990’s. Great prices are there now for those ready to take advantage before Croatia becomes the next exclusive spot of Europe.

Croatia Economic Overview- For the Wealthy

A little known law exists in Croatia that is an indicator of the potential for Croatia to become another great playground for the super rich. The wealthy can get exclusive benefits from the design of this law. Officially Croatia is a high-tax country, but there is a loophole for yacht owners. If a yacht is purchased in the EU and moored in Croatia, you will not be subject to VAT and import duties.

For those holding a Croatian residency permit, you will be able to use your yacht in European Union territory for 18 of every 24 months without paying VAT. By simply renting an apartment, or mooring a yacht in Croatia, you will be able to acquire a residency permit allowing you to stay for more than three months.