Have you already heard about the measures to protect against price increases? With inflation on the market and the introduction of the euro,  prices in Croatia are drastically changing. Both public and private entities will feel the changes in their bank accounts. In the following blog, we are sharing an overview of measures to know where you can pay attention to.

Selected measures of protection against price increases

Limitation of electricity prices

Cheaper electricity is provided at the level of the universal service for households with an average price of €62/MWH for the public and non-profit sectors. 0.5295 HRK/kWh will be charged for all enterprises that consume up to 250,00 0 kWh of electricity every six months. For consumption above 250,000 kWh, the price is 1.356210 HRK/kWh.

Mitigation of gas price growth

Croatia prepared a solution at the level of the European Union, where it proposed a limit on wholesale gas prices. Namely, due to the influence of the gas price on electricity production, we have an uncontrolled increase in prices on the stock exchanges. That is why the government has made a decision on fuel prices to protect citizens and small distributors of petroleum products.

Restriction of thermal energy prices

The unit price of heat energy remains unchanged for all heat systems in the 2022/2023 heating season. This affects households and entrepreneurs. The price per kWh does not change in central and closed heating systems.

Encouraging the green transition

Grants have been prepared for businesses for the transition to an energy-efficient economy. Amounts of grants are provided for small and medium-sized enterprises. For small enterprises grants go from HRK 750,000 to HRK 7. 5 million, and for medium-sized enterprises from HRK 2 to HRK 35 million.

Measures for employed persons

In the blog post Taxes in the Republic of Croatia, we already explained how this system functions in Croatia. There have also been tax reliefs that open up space for entrepreneurs to stimulate employees through an increase in tax-free receipts as:

• occasional awards for 66.67%
• monetary rewards for work results for 50%
• a gift for a child in a kind and a gift up to 15 years for 66.67%
• allowance for food for employees by 20%
• compensation for the use of a private car for official purposes for 50%
• future pensioners where the tax-free income increases by 25%.

Support for companies in difficulty

In addition to measures that directly affect mitigating the energy crisis, the Croatian Bank for Reconstruction and Development has provided HRK 3.8 billion for difficult businesses. It includes subsidized interest rates of 0.5% per year and repayment terms of up to 5 years.

Cope with the increased costs of living

All of these measures can help your business run more smoothly. However, don’t forget to regularly check your costs and make sure they are in line with your budget. If you need more information about the upcoming changes in the market, take a look at our other blog posts. In case you need business consulting or help with the right way to establish your business, feel free to contact us at info@virtual-office.hr.