Act on Amendments to the Foreigners Act NN 40/2025

On March 15, 2025, the amendments to the Foreigners Act (NN 40/2025) came into force, introducing significant changes in the regulation of residence and work for third-country nationals. These amendments were primarily adopted to implement Directive (EU) 2021/1883 on the conditions of entry and residence of third-country nationals for the purpose of highly qualified employment, aimed at attracting a highly qualified workforce. The new amendments also seek to reduce administrative burdens in the permit issuance process and prevent abuse in the employment procedures of foreign nationals.

One of the key changes relates to the duration of residence and work permits, which are now issued for up to three years when the opinion of the Croatian Employment Service is required or for two years when the permit is issued without conducting the labor market test and without the opinion of the Croatian Employment Service. The permits will now be issued in the form of a biometric document, and a change of occupation with the same employer or a change of employer will not always necessitate the issuance of a new permit. Under certain circumstances, third-country nationals will be allowed to take on additional employment with another employer, and in the event of job termination, they will have a 60-day period to find new employment.

The amendments also modify provisions related to the accommodation and salary of foreign employees and introduce new obligations for employers, which they must fulfill to obtain a positive opinion from the Croatian Employment Service, including achieving the prescribed minimum turnover in the past six months. Additionally, employers are now required to provide a financial guarantee in the form of a promissory note in the amount of one average monthly gross salary per foreign employee who requires a visa to enter the Republic of Croatia. In this way, the aim is to deter employers from easily dismissing the employees they hire, as well as to ensure they employ employees who genuinely intend to work.

One of the main novelties concerns the EU Blue Card, with its duration extended to 48 months. The renewal application must be submitted at least 60 days before its expiration. Additionally, EU Blue Card holders will be allowed a certain period of unemployment without losing their rights, as well as the ability to engage in self-employment or professional activities without the need for a new permit.

The new amendments also introduce a new body, the Commission, which will assess skills acquired through work experience in the IT sector. Consequently, for certain professions, relevant professional experience may substitute for higher education.

Regarding temporary residence, third-country nationals with approved international protection now have an easier process for submitting a temporary residence application for the purpose of family reunification. The amendments also expand and modify provisions regarding long-term and permanent residence, with particular consideration given to periods of absence from the Republic of Croatia for third-country nationals who, due to the nature of their work, spend extended periods abroad. This primarily applies to posted employees in other EEA member states or Switzerland, as well as those who work abroad due to personal business activities, such as seafarers, boatmen, pilots, and drivers in international transport.

Among other changes, it is important to highlight the introduction of a new category of Croatian emigrants, recognizing Croatian emigrants and their family members as a distinct group. Furthermore, the temporary residence period for digital nomads is extended, the rules for seasonal employees are amended, and new obligations are imposed on transport operators. To ensure compliance with the provisions of the applicable law, misdemeanor provisions are also amended, promoting greater cooperation and coordination between state bodies and institutions for better enforcement and protection of employees’ rights.

The new provisions in the Foreigners Act clearly demonstrate that Croatia is actively working to prevent exploitation in the employment of foreign employees while simultaneously protecting the economy and national security. Special attention is given to aligning the number of residence and work permits with the growth and actual needs of employers, aiming to achieve a balance between economic development and job protection. This approach seeks to ensure the arrival of foreign employees with genuine work intentions while safeguarding the domestic workforce.