Establishes national FDI screening regime to safeguard national security and public order
13 Nov 2025
On 5 November 2025, Croatia established its national foreign investment screening mechanism to protect security and public order, bringing its framework into alignment with the European Union FDI Screening Regulation. The Act adopts a broad definition of foreign investors, covering third-country individuals and legal entities, intermediaries, and EU-based companies ultimately controlled by non-EU actors. Screening applies to foreign investments involving “obliged entities,” meaning companies registered, established, or newly incorporated in Croatia whose activities may affect national or EU security or public order. These entities will be identified by the relevant sectoral authorities within six months of the Act’s entry into force, using the national classification of activities. A qualifying foreign investment includes any direct or indirect acquisition, increase or reduction of a holding of at least 10 per cent, or any transaction conferring control or decisive influence, including through contractual or other non-shareholding arrangements. The Act entered into force on 13 November 2025.
Nature of measure:
Type:
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Entry and establishment (Approval and admission - screening)
Industry:
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Unknown/undefined sectors
Inward FDI:
Yes
Outward FDI:
No
Sources:
