Croatia proposes new law to screen foreign investments

ZAGREB, 19 September 2025 (Hina) – The Ministry of Finance has opened a public consultation on a draft law that would introduce systematic checks on foreign investments in Croatian companies managing critical infrastructure and resources.

The legislation would bring Croatian law in line with an EU regulation and represents one of the criteria for Croatia’s entry into the Organisation for Economic Co-operation and Development (OECD).

Screening mechanism for foreign ownership

Under the proposal, any foreign investment involving the acquisition of 10 percent or more of shares, voting rights, or ownership stakes in companies identified as strategically important would be subject to review.

Deputy Prime Minister and Finance Minister Marko Primorac underlined the importance of this step during talks with OECD representatives in late August, noting that the establishment of such a mechanism is essential for Croatia’s accession process.

The law foresees the creation of a government body to determine which entities fall within the scope of the rules. These are expected to include operators of critical infrastructure, companies with access to sensitive information, or those in other strategic sectors.

Procedure and scope

Investors from non-EU countries will be subject to special scrutiny. Before finalising a qualifying acquisition, they would need approval from the Ministry of Finance and its Commission for Foreign Investment Screening.

The draft law also extends the mechanism to concessions and public-private partnership agreements involving foreign investors.

The review process would begin with a request submitted to the Ministry, followed by an assessment by the Commission, and conclude with a formal decision from the Ministry of Finance. Authorities would also have the power to initiate a review on their own initiative.

Safeguarding security and transparency

The Ministry emphasised that the legal framework is designed to prevent investments that could pose risks to national or EU security and public order. Particular attention would be given to investors under direct or indirect control of governments or state bodies from non-EU countries, including military organisations.

The law aims to ensure that foreign investors act in good faith, with capital that is transparent and traceable to its ultimate owner, while eliminating risks of hidden motives or links to illicit activities.

At the same time, the Ministry highlighted that the goal is not to discourage foreign investment but to secure responsible inflows of capital that benefit both Croatia and the EU.

Public consultation open

The draft law is currently open to public consultation until 3 October 2025.