Employer of Record (EOR) in Croatia
The best way to compliantly hire worldwide or regulate your employment status as a freelancer is though an EOR service provider like Native Teams. We work from the background, ensuring that your global work meets all the legal requirements.
How does an EOR in Croatia work?
Partnering with an EOR provider like Native Teams enables businesses to expand internationally without navigating legal complexities or setting up a legal entity. The EOR manages payroll, employment contracts, onboarding, and compliance with local laws, while the business maintains control over daily employee management.
For freelancers, remote workers, and digital nomads, an EOR offers formal employment status while preserving work flexibility. This provides access to benefits such as private health insurance, pensions, and legal employment contracts, blending flexibility with traditional job perks.
Who can use EOR Services in Croatia?
Businesses can use EOR services in Croatia to hire new team members worldwide in alignment with labour laws, and solo professionals can get employee benefits.
Businesses
Businesses of all sizes, from startups to large corporations, can benefit from EOR services in Croatia. These services are particularly useful for companies looking to expand into the Croatian market without needing to set up a legal entity. EOR providers help businesses hire local talent, handle payroll, and ensure compliance with Croatian labour laws.
Individuals
Freelancers, remote workers, and consultants looking to enjoy the benefits of traditional employment in Croatia can also utilise EOR services. By partnering with an EOR, they can obtain legal employment status, ensuring compliance with tax, social security, and other legal requirements.
Features of Native Teams EOR Services in Croatia
Employment status
Native Teams’ EOR services enable freelancers to manage their employment status legally, regardless of where they live and work. Employers can also hire, onboard, and pay their global teams in compliance with regulations.
HR administration and documentation
HR tasks are automated, with easy access to documents via the Native Teams dashboard.
Global payroll
With a payroll calculator across 70+ countries, both freelancers and employers can calculate salaries, taxes, and benefits easily, all on one platform.
Benefits
Freelancers maintain flexibility while enjoying benefits like healthcare and pensions, and employers can offer these perks to attract top talent.
What legal requirements exist for employment in Croatia
Employment contract
According to Croatian law, employment contracts must be in writing. The contract should include the start date, type of work, working hours, annual leave, duration, salary, and notice period.
Minimum wage requirements
All employees in Croatia must receive at least the minimum wage. Exceptions to this rule are management board members and executive directors.
Social security contributions
Employers are responsible for deducting a certain amount from their employees’ salaries to pay for social security contributions. In Croatia, employees are entitled to health, pension, unemployment, maternity, work accident, and family benefits.
Paying taxes
Employers must pay income taxes or any other type of tax on behalf of their employees.
Work permits
Foreign workers from the EU, Switzerland and EEA and their family members don’t have to get an employment permit or a residence permit to work in Croatia. However, for workers outside of these countries, a work permit or work registration certificate is required.
Obtaining a tax number
Employers and employees must obtain a tax number or OIB (‘osobni identifikacijski broj’), which is necessary for registering for health insurance, opening a local bank account, and paying taxes.
Compliance with labour laws
Employers must follow Croatian labour laws, which include overtime, working hours, leave entitlements and termination procedures.
Please note that Croatian laws and regulations can change. So, it’s important to keep abreast of the latest developments regarding labour law.
Explore Croatia’s labour laws in our hiring guide.
Why Choose Native Teams as your Croatia Employer of Record?
Native Teams has the hands-on expertise needed for compliant global work. Through our EOR services, you can get locally compliant employment contracts, manage social security contributions and taxes and obtain work permits with ease. Focus on perfecting your craft on the global scene while we handle all the administrative work for you.
What is an Employer of Record?
An Employer of Record (EOR) is a third-party entity that assumes the legal responsibilities of employing workers for another company. The EOR manages tasks such as payroll, tax compliance, benefits, and legal adherence to local labour laws. It also supports freelancers and remote workers in formalising employment status and accessing benefits.
What are the costs of using an Employer of Record in Croatia?
EOR costs in Croatia vary by provider, employee count, and service requirements. Native Teams offers affordable pricing, with business plans starting at €79 per employee per month and individual plans at €49. Both plans include essential legal employment features.
What is the difference between PEO and EOR?
An EOR fully takes on legal employment responsibilities like payroll, taxes, and compliance, while a PEO shares these responsibilities with the client in a co-employment arrangement. EORs are suited for companies expanding into new regions without legal entities, whereas PEOs are used by businesses already operating in a country to streamline HR functions.
What are the responsibilities of an Employer of Record (EOR) service provider?
EOR providers act as a legal employer, managing payroll, benefits, and employment contracts while ensuring compliance with labour laws. They reduce risk by assuming liability for employment issues and offer HR support, enabling businesses to focus on operations.
Is using an Employer of Record in Croatia legal?
Yes, using an EOR in Croatia is fully legal and complies with Croatian labour regulations. International companies often use EOR services to enter the Croatian market, and freelancers use them to formalize employment.
Why should I use EOR instead of opening my own company or an office in Croatia?
An EOR allows businesses to avoid the complexities of setting up a legal entity in Croatia. The EOR manages legal employment tasks, such as payroll and compliance, and offers flexibility to scale operations without the challenges of closing a company if plans change.
How many people can I employ in Croatia?
There is no legal limit on the number of employees a company can hire in Croatia, as long as labor laws are followed. The number you can hire depends on your business needs, financial capacity, and ability to manage staff effectively.