Background information

The Croatian Employment Service provides definitions and frameworks for determining business activities that are deemed as green and digital and gives information on various incentives for such jobs. One form of incentives for these activities is the Green and digital subsidy for self-employment.

The subsidy aims to provide funds for self-employment and to allow for the legalisation of existing work or to employ through a business idea for which they assumed had market potential, or they wished to start "privately" doing the job for which they had previous experience, i.e. which they previously performed for an employer.

Content of measure

The subsidy can be awarded to an unemployed person or to a group of unemployed people if they will jointly establish and start operations of a new business entity or continue with the business of the existing business entity that they have taken over.

Target groups are jobless persons registered in the register of unemployed persons maintained by the Croatian Employment Service. Applicants must meet the criteria of a green or digital workplace as defined by the Glossary. The subsidy for self-employment can be assigned to two groups of users.

The first group is eligible up to HRK 150,000 (€19,920). The subsidy is awarded for activities that belong to the following areas classified by NACE:

• (B) mining and quarrying (sections 05-09);
• (C) manufacturing industry (sections 10 - 33);
• (D) supply of electricity, gas, steam and air conditioning (section 35);
• (E) water supply; wastewater removal and waste management and environmental rehabilitation activities (sections 36-39); and
• (F) construction (sections: 41-43).

The second group is eligible up to HRK 110,000 (€14,608). It is awarded for registration and future performance of activities that belong to the following areas classified by NACE:

• (G) Wholesale and retail trade; repair of motor vehicles and motorcycles (all sections except 47.99);
• (H) Transportation and storage;
• (I) Activities of providing accommodation and preparing and serving food (only section 56);
• (J) Information and communications; (M) Professional, scientific and technical activities (all sections except 69.1);
• (N) Administrative and auxiliary service activities (all sections except 77, 78 and 79);
• (P) Education;
• (Q) Health care and social welfare activities;
• (R) Arts, entertainment and recreation (all divisions except 93.19) and
• (S) Other service activities (all sections except 94).

The stated amounts represent the maximum possible amount of support that can be granted, while the final amount shall be determined based on the evaluation of the justification of the initial investment accordingly needs expressed in the submitted business plan and cost estimate, which is an integral part of the business plan.

The employer is obliged to spend HRK 20,000.00 (€2,656) from the total amount of support on activities/purchase of equipment that contribute green/digital transition with a detailed explanation in the business plan.

Use of measure

According to the Statistical Bulletin No. 7 (Mjesecni statisticki bilten) by the Croatian Employment Service (Table 25, page 52) in the first seven months of 2022, 147 persons got the Green and digital financial subsidy for self-employment, of which 47 obtained it in July 2022. It could be expected that the interest for the Subsidy will increase with time.

Target groups

Workers	Businesses	Citizens
Self-employed Unemployed	Solo-self-employed Start-ups

Actors and funding

Actors	Funding
National government Public employment service	European Funds National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

Although social partners were not directly included in the design of the measure, indirectly they participated because representatives of social partners are members of the Croatian Employment Service Governing Board which concludes on the characteristics of the active labor market measures.

Views and reactions

Social partners in Croatia fully support all measures directed towards the transition to green and/or digital economy.

Sectors and occupations

This case is not occupation-specific.

Sources

• 21 January 2022: Potpora za samozapošljavanje - zeleno/digitalno (the Green/Digital Financial Subsidy for Self-Employment) (mjere.hr)