Croatia is closing the Digital Nomad loophole | Expat in Croatia
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- Опубліковано 31 тра 2024
- This change is a long-time coming and it will impact these people:
- Digital nomads in Croatia
- Spouses of digital nomads in Croatia
- Those with residence based on other purposes in Croatia
Here is the draft of the new Law on Foreigners: esavjetovanja.gov.hr/ECon/Mai...
RESIDENCE PROGRAMS THAT ARE IMPACTED
Digital Nomad and their spouses: www.expatincroatia.com/digita...
Prepayment of rent: www.expatincroatia.com/prepay...
Language study: www.expatincroatia.com/tempor...
Ownership of property: www.expatincroatia.com/proper...
ALTERNATIVE RESIDENCE PROGRAMS
Family reunification with an EU/EEA citizen: www.expatincroatia.com/tempor...
Family reunification with a Croatian citizen: www.expatincroatia.com/apply-...
Working for a Croatian company: www.expatincroatia.com/how-ap...
Blue Card: www.expatincroatia.com/eu-blu...
Working for a Croatian company that you own: www.expatincroatia.com/how-to...
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thank you Sara, information was very hep helpful
Hooray!! If you have any questions, let us know. :)
Sounds like Montenegro is about to get even more tourism. Also, how is the Croatian Government enforcing "tax evasion" by working online as a spouse and not officially a digital nomad? Would never advise anyone to break the law, of course, but from a practical point, it seems a bit unenforceable. Simply, let's say I used a VPN...did my work online...or, what if I have royalties as an artist...I'm not doing any work, would that be illegal? Feels a bit like the new law is just another play in whack-a-mole, really...
Great question, if you're getting income, whether it is working income or passive income, you are supposed to report it to Croatia. You may not have to pay tax on it. There are lots of variables and tax treaties, but it must be reported for everyone not on the digital nomad permit. It is very difficult for them to enforce. The primary way that they discover people who aren't paying tax but should be, is if they buy a home or a car. If the tax administration sees that you made a significant purchase via a purchase contract, but you are not listed as a taxpayer in Croatia, then that throws up a red flag. A tax resident is different than a taxpayer. They will then say, "where did you get the money to make this purchase?" It can get messy.
So the digital nomad visa will be extended from 12 months to 18 months - that sounds great! So, wondering how likely it is that the law gets changed, and when?
It is very likely. Right now, they are forming a new government. Once the dust settles, then this probably be addressed. There are other pressing changes in the law proposal that are unrelated to digital nomads. Our educated estimate is 3 to 6 months. Of course, we will scream about it from the mountain tops once that happens.
Spain DN is issued for 3 years, after that, there are no problems with staying and applying for permanent residence. The same goes for Portugal or Italy. Given the dwindling population, rejecting Digital Nomads sounds “reasonable.”
Hungary is also offering a 2-year permit with an opportunity for renewal. Croatia just wants DNs to be here short-term. Croatia's population is dwindling, and it needs people who can be in the workforce. DNs are working abroad, so they cannot fill this need. Thanks for the comment!