The future of business is reflected in the global trend of digital nomads

The modern digital age brings great changes in the way things work, which no longer depends on a strict business organization within the physical office space. The benefits of living and working from some of the most famous tourist destinations are being used by more and more people called digital nomads.

Digital nomads are locally independent persons who need a good internet connection, laptop, and smartphone to work. The job can be done from any corner of the world and is not connected to particular office space, city, or state. They are mostly young people, who are free of spirit, flexible, and eager to explore.

At the beginning of this year, Croatia legally regulated the status of digital nomads who can now stay in our country for up to a year, and if they come from countries that do not need a visa to enter Croatia, they can stay three months longer on the basis of a tourist visa. Before us, many other countries, such as Estonia, Barbados, the Czech Republic, Germany, Iceland, Mexico, Norway, Portugal, and Spain, made the stay for digital nomads available in their versions.

The Foreigners Act defines a digital nomad as a third-country national, employed or working through communication technology for a company or own company that is not registered in Croatia, and does not perform jobs, and does not provide services to employers in Croatia. Amendments to the income tax Act stipulate that the profits of digital nomads will not be taxed.

If such a person wants to live and work in Croatia, he/she must apply for a temporary residence permit (digital nomad visa). Temporary residence may be granted for a period of up to one year or less and cannot be extended, but a person may submit a new application 6 months after the expiration of the originally approved application for temporary residence. Members of the immediate family can join the digital Nomad, on which more information can be found at https://mup.gov.hr/aliens-281621/stay-and-work/temporary-stay-of-digital-nomads/286833.

After the expiration of the temporary stay, they must leave the country within 90 days.

What does the process of obtaining a temporary residence permit look like?

Anyone can apply for a temporary residence permit online at the following link: https://digitalnomadscroatia.mup.hr/Pages/Zahtjev, after which it will be forwarded to the competent police administration, depending on the place where the person wants to stay. It can also be requested in person by going to the embassy or consulate of the Republic of Croatia abroad, if a visa is required to enter Croatia, and if not, then it can be submitted at the embassy or consulate of the Republic of Croatia, or the competent police department.

In the application process, it is necessary to submit certain documentation, about which we provide more information below.

1. Copy of a valid travel document
2. Proof of health insurance – a person must have travel or private health insurance covering the territory of the Republic of Croatia
3. Proof that the person is a digital nomad – based on an employment contract or other documentation proving that the person will perform the work through communication technologies for a foreign employer or own company not registered in Croatia, statement of the employer or third-country national that the work is performed through communication technology, and a copy of your own company’s registration and proof that through a company that does the work
4. Proof of means of subsistence during the stay in Croatia – the person must enclose a bank statement or proof of regular inflow of funds. The Regulation on the method of calculation and the amount of resources for the subsistence of third-country nationals provides that digital nomad must have at least 2,5 average monthly net paid salaries for the previous year, while for each further family member or living or informal living partner this amount shall be increased by an additional 10% of the average monthly net paid salaries. Currently, the amount is at least HRK 16,907.50 on a monthly basis.
5. Proof that the person has not been convicted of criminal offenses from his / her home country or the country in which he / she resided for more than one year immediately before arriving in Croatia.
6. State the address in Croatia – it is important to state the address in order to determine the locally competent police administration or the station that will deal with the request. If the application is submitted for the first time and the person does not have an address in Croatia, a temporary address (hotel or hostel if the accommodation reservation has been confirmed) can also be stated.

After a temporary stay is granted, a third-country national who does not need a visa to enter Croatia is free to enter the country, while those who need a visa must contact the embassy or consulate of the Republic of Croatia to obtain a visa or biometric residence permit.

The third-country national must report the residence to the police administration or station within 30 days of the granting of temporary residence or the issuance of a visa so that temporary residence is not abolished.

In addition, he must register his residence and residential address within 3 days of entering the country, because even in that case he risks revoking the temporary residence permit. Upon arrival in Croatia, he is obliged to obtain a residence permit, ie a biometric document, where he must enclose his photograph and provide biometric data.

Costs

If the request is submitted at a diplomatic mission or consular office, at the time of submitting the request, the following shall be paid:

• HRK 420 for temporary residence permit
• HRK 460 for a visa
• HRK 310 for the biometric residence permit form

If the application is submitted to the police administration or exists, it is paid after the residence permit:

• 350 HRK for a temporary residence permit
• 70 HRK administrative fee for issuing a biometric residence permit
• 240 HRK for the biometric residence permit form

Payment of administrative fees can be made online in favor of the State Budget, on the IBAN of the state budget HR1210010051863000160, model HR64, reference number: 5002-713-OIB (enter the OIB of the third-country national for whom the administrative fee is paid).

For those who have not been assigned an OIB, the reference number is: 5002-713-number of valid travel document.

Through Internet banking, a fee can be paid for the preparation of a biometric residence permit in favor of the State Budget, to the IBAN of the state budget HR1210010051863000160, MODEL HR64, CALL NUMBER: 5002-713-OIB.

For those who do not have an OIB, the reference number is: 5002-713-number of a valid travel document.

Payments from abroad require a BIC / SWIFT CODE that reads: NBHRHR2XXXX.