Big changes for foreign workers in Croatia – here’s what’s new

The Croatian government has approved proposed amendments to the Aliens Act – the law on foreigners – focusing on work and residency rights for foreign workers, graduates, and family members of Croatian citizens and emigrants.

The new law aims to regulate foreign workers’ residency and employment in Croatia. It is aimed at preventing market exploitation and the government has said it will put an end to manipulation. There will be no unregulated importing of labour, and arrests will continue for those abusing the system.

Special attention has also been paid to the Croatian emigrants and their descendants, who will be granted residence under easier conditions.

Acquiring permanent residence will also be made easier for foreign students who have completed their studies and are working in Croatia.

Key Changes

Deputy Prime Minister and Minister of the Interior, Davor Božinović, recently presented the draft proposal, explaining that the law, in effect since January 2021, prioritises hiring local workers before allowing the employment of foreign nationals.

The amendments align with the EU Blue Card Directive, aimed at attracting highly skilled workers.

The most notable changes include extending the Blue Card validity from 24 to 48 months. It will also be available to IT professionals without formal qualifications, provided they prove their skills through work experience assessed by a special commission.

The salary requirement remains at 1.5 times the national gross average, the Ministry of Interior published.

Rising Demand for Work Permits

The amendments respond to growing labour market demands. In 2024, Croatia issued 206,529 work permits—an increase of 210% compared to 2020. The majority went to construction (75,071), tourism and hospitality (56,228), industry (28,486), transport (16,149), and trade (7,925).

Most permits were granted to citizens of Bosnia and Herzegovina, Nepal, Serbia, India, the Philippines, North Macedonia, Bangladesh, Kosovo, Uzbekistan, and Egypt. As of 31 January 2025, there were 113,504 active work permits in Croatia.

Additional Provisions

The amendments introduce several new rules:

• Employers providing accommodation for foreign workers must prove it meets appropriate standards.
• The deadline to report job contract terminations is reduced from 15 to 5 days.
• Workers from EEA countries and Switzerland can work for up to 90 days without a permit.
• Transport companies must cover the costs of returning foreign nationals denied entry.
• Employers withdrawing a work permit request must pay a financial guarantee equal to one month’s gross salary to cover potential repatriation costs.
• Work permits can be revoked if an employer violates labour laws or is involved in illegal employment practices.
• Certain foreign professionals, athletes, and post-earthquake reconstruction workers may receive permits without labour market testing.
  

Furthermore, temporary residency extensions will be available for those undergoing medical treatment. For certain in-demand auxiliary jobs, such as assistant cooks, waiters, and housekeepers, experience and qualifications will no longer be required.

Božinović emphasised that foreign workers must receive the same wages as their Croatian counterparts for the same job. Employers will have until 1 January 2026 to adapt to new regulations before penalties take effect.

Additionally, companies illegally employing foreign workers will be banned from operating on digital platforms.

The proposed amendments have been approved by the government and proceeded to the Croatian Parliament for review this week.

“As for this year, by 31 January 2025, a total of 17,168 residence and work permits have been issued for new employment. At present, 113,504 foreign nationals have registered residence in the Republic of Croatia based on a valid residence and work permit, known as an active permit. These numbers change daily due to the expiration or revocation of permits, as well as new residence applications in Croatia,” said Minister Božinović.