Croatia plans new demographic measure – up to €15,000 car subsidy 

Croatia is preparing a new demographic measure that could provide families with four or more children with up to €15,000 towards the purchase of a seven-seater vehicle.

Minister of Demography and Immigration Ivan Šipić announced the planned measure while discussing the latest demographic trends in Croatia, including a continued increase in the number of births and a rise in the number of Croatian citizens returning from abroad.

The new car subsidy is intended for families with four or more children and will apply to seven-seater vehicles. Šipić said the Government would co-finance the purchase with up to €15,000, although the measure will include an income threshold.

The details are expected to be presented after the final Government session before the summer recess.

“Families who were planning to buy a car in the autumn should wait a little. The savings will come in handy,” Šipić told Dnevnik Nova TV.

He stressed, however, that the measure would be only one part of a wider demographic policy aimed at supporting families.

“Affordable housing, tax relief, healthcare, kindergartens and education are all measures we are working on across different ministries,” Šipić said, adding that the Ministry of Demography and Immigration has an important coordinating role.

According to Šipić, Croatia’s population has increased for the third consecutive year, while 410 more children were born last year than in the previous year.

He said the trend had continued in 2026, with almost 700 more children born in the first half of the year compared with the same period previously.

Šipić said the figures represented an improvement after years of negative demographic trends, but cautioned against excessive optimism.

“We are certainly relieved and pleased after years of negative statistics, both in terms of departures and births. However, this is not a time for euphoria,” he said, adding that the figures offered hope and showed that the Government should continue with its demographic policies.

He attributed the positive trend primarily to Croatian families who, he said, were “not afraid of life and are open to having children”.

More Croatians returning than leaving

Šipić also highlighted an increase in the number of Croatian citizens returning to the country.

He said this was the first time in around 15 years that Croatia had recorded such a significant number of returnees, with many of them being young families.

According to data cited by the minister, around 80% of working-age returnees are of an age at which many already have, or may be starting, families.

Šipić also pointed to the Government’s tax refund measure for returning Croatian citizens. According to Tax Administration data, more than 13,000 people have returned under the scheme, he said.

He noted, however, that not all returnees register their return, meaning the actual number could be higher.

A new Law on Demographic Renewal is also being prepared, alongside additional measures aimed at supporting Croatian returnees.

The planned vehicle subsidy forms part of a wider package of policies that the Government says is intended to make family life more affordable and encourage positive demographic trends.