Croatia offers quite a number of business opportunities in the field of construction. This automatically begs the question of who is entitled to do construction related work in Croatia. The Spatial Planning and Construction Activities Act offers some basic guidelines, explained below.
Working in construction can be considered from different perspectives with regards to the involved entities. For the purposes of this article, we have taken into account the perspective of a legal entity (which also includes crafts), independent natural entities such as architects and project managers, and lastly, employees. Furthermore, we have made the distinction between work on temporary basis and permanent businesses.
- LEGAL ENTITIES / CRAFTS
A foreign legal entity with headquarters in another country that performs spatial planning, design and/or expert construction supervision, i.e. project control, or foreign natural person (craftsman) performing construction activity may in the Republic of Croatia - on a temporary and occasional basis - perform the tasks that it is authorized to perform according to the regulations of the country in which it is headquartered. However, firstly it has to report to the competent ministry in a written (or electronic) form and submit documents proving:
- the right to carry out activities in the country of the foreign person's seat
- that it is covered by a guarantee, i.e. insurance against liability for damage that could be caused to the investor or other persons by the performance of the activity, whereby an equivalent guarantee, i.e. insurance concluded in the country of the foreign person's seat, is recognized.
It is also possible to permanently carry out activities. This is related to any foreign legal entity with headquarters in another country that performs the activity of spatial planning, design and/or expert construction supervision, or a foreign physical person (a craftsman), that performs the activity of construction, construction project management or testing and preliminary research – those entities may, under the assumption of reciprocity, in the Republic of Croatia permanently carry out activities under the same conditions as a person based in the Republic of Croatia, in accordance with applicable regulations.
The presumption of reciprocity does not apply if the legal entity/craftsman is based in another EEA state, or a member state of the World Trade Organization.
- NATURAL ENTITIES
A natural person who in country other than Croatia has the right to perform spatial planning tasks in the capacity of an authorized person, has the right in Croatia - under the assumption of reciprocity - to permanently perform these tasks in the capacity of an authorized manager of spatial planning tasks, under the same conditions as an authorized urban architect if they have professional qualifications necessary to perform these tasks in accordance with the special law governing the recognition of foreign professional qualifications and other special regulations.
Similarly, a natural person who in a foreign country has the right to perform design work and/or expert supervision of construction, project control, construction management or project manager and test and preliminary research work has the right, in Croatia, under the assumption of reciprocity, to permanently perform these tasks in in the capacity of an authorized person under the same conditions as an authorized architect, i.e. an authorized engineer, auditor, construction site engineer and/or works manager, project manager, i.e. an expert for the performance of previous research, if they have the professional qualifications necessary to perform these jobs in accordance with a special law which governs the recognition of foreign professional qualifications and other special regulations.
Please note that the assumption of reciprocity in both cases above does not apply to citizens of a contracting state of the European Economic Area (hereinafter: EEA) and a member state of the World Trade Organization.
A foreign authorized natural person has the right in the Republic of Croatia to permanently perform spatial planning, design and/or expert construction supervision, i.e. control of projects under the professional title that persons authorized to perform these tasks have in the Republic of Croatia, if they are registered in the directory of foreign authorized architects and urban planners, the directory of foreign authorized architects, that is, the directory of foreign authorized engineers of the corresponding chamber, in accordance with the law regulating association in the Chamber (i.e. Croatian Chamber of Architects, Croatian Chamber of Civil Engineers, Croatian Chamber of Mechanical Engineers and Croatian Chamber of Electrical Engineers).
An authorized natural person from an EEA contracting state has the right in the Republic of Croatia to occasionally or temporarily perform spatial planning, design and/or expert construction supervision, i.e. project control tasks in the capacity of a responsible person under the professional title that persons authorized to perform these tasks have in Croatia. Before they start working, they need to inform the appropriate chamber about it in a written or electronic form, while submitting the following information:
- related to the professional qualifications necessary for the performance of spatial planning, design and/or expert construction supervision, i.e. project control tasks in the country of origin and
– on the details of any insurance or other means of personal or collective protection with regard to professional liability.
– proof of citizenship
- confirmation that its holder has a place of business in an EEA contracting state for the purpose of carrying out spatial planning, design and/or expert construction supervision, i.e. project control tasks in the capacity of an authorized person
- a certificate confirming that the right to perform professional work has not been temporarily or permanently revoked, given that it is a profession that has an impact on public health and safety, and
– proof of professional qualifications. If in the country in question does not regulate said fields, evidence that the person submitting the statement has performed professional work in an EEA contracting state full-time or part-time of the same total duration for at least one year in the last ten years, shall suffice.
The declaration above is submitted for each year in which the applicant intends to temporarily or occasionally provide services in Croatia.
Lastly, a natural person who in a foreign country has the right to perform design work in the capacity of an authorized person (hereinafter: foreign authorized person), which is not a contracting party to the EEA, may perform design work in the capacity of an authorized person in the Republic of Croatia if they are on a tender acquired the right to perform the tender work, provided that it receives the approval of the appropriate chamber.
- EMPLOYEES
Like many other European countries, Croatia too is experiencing a shortage of domestic workers, thus starting to depend on imported work force more and more heavily. Evidence is, among others, the growing number of temporary employment agencies, as well as the significant increase in quota opened for foreign workers.
Depending on specific needs and circumstances, it is possible to obtain short-term residence, temporary residence, long-term residence & EU Blue Card. As part of EU and EEA, Croatia is taking special care in ensuring all rights of employees. A detailed overview of this somewhat complex issue can be found on migracije.hr, a website run by the Croatian government, containing all necessary data with regards to this topic.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
