New Croatian language requirements for foreign work permit extensions

Croatia is issuing significantly fewer work permits to foreign nationals this year, signalling a notable shift in the country’s labour market.

In the first ten months of 2024, nearly 28,000 fewer permits were granted compared with the same period last year, with construction seeing the steepest drop.

Employers say the sector no longer requires the large inflow of foreign labour once seen as indispensable.

Construction firms that previously relied heavily on foreign workers are now reducing their numbers.

Saša Perko, owner of a construction company, told RTL Danas that only ten foreign workers remain in his firm after eight years of employing a much larger international workforce.

He explains that many arrivals lack the necessary qualifications, leaving companies to invest heavily in training to bring them up to the required standard.

This year alone, 18,500 fewer permits were approved for construction workers, and when including rejected applications, total permit numbers for all sectors have fallen by around 40,000. Even tourism, another major employer of foreign nationals, has recorded a decline.

A key challenge remains the language barrier. Under the proposed amendments to the Law on Foreigners, workers will be required to pass a Croatian language test at A1.1 level after one year for their permits to be extended.

Students from abroad may also see changes, with temporary stay for study purposes expected to be lengthened from one year to three.

While construction’s demand has eased, the need for staff in healthcare continues to rise. Croatia is currently short of an estimated 5,000 nurses, particularly in hospitals.

Recruitment from Romania and third countries is already under way, says Sandra Alić of the Zajedno union, though she stresses that language proficiency is essential for safe and effective work.

Low salaries and challenging working conditions remain key reasons why domestic medical staff continue to emigrate.

Government officials argue that the new legislation will bring much-needed order to the labour market by improving oversight of agencies and ensuring accurate data on foreign workers.