Digital nomads: Proposal for amendments of the Foreigners Act

11. November 2020

The Republic of Croatia has recognized the importance and potential of attracting digital nomads, i.e. IT professionals, who work remotely and are not tied to the location of their employer. The term “digital nomads” is now included in the Proposal of the Foreigners Act:

“Digital nomad is a third-country national who is employed or performs business through telecommunication technology for a company or his own company that is not registered in the Republic of Croatia, and does not perform business or provide services to employers in the Republic of Croatia.”

Furthermore, Foreigners Act proposal defines, inter alia, that temporary residence is granted to a third-country national who intends to reside or already resides in the Republic of Croatia for the purpose of: residence of digital nomads and stipulates that a request for regulating temporary residence for purposes of digital nomad residence may be submitted by a third-country national after six months has expired from the expiration of temporary residence granted for other purposes or purposes of digital nomads residence.

This Proposal of Foreigners Act will regulate new purpose of temporary residence for “digital nomads” as new category of third-country nationals which can regulate their residence in Croatia and the adoption of the proposed Act enables regulation of temporary residence for third-country nationals.

The Proposal reached the first reading in the Croatian Parliament on Friday, September 11, 2020, and it should be debated and adopted by the end of this year. According to the plan, it should enter into force at the beginning of 2021.

In addition, the stay and work of foreign citizens in Croatia is regulated by the General Tax Act and other bylaws, which will require amendments after implementation of new Foreigners Act provisions.

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