Investors in Croatia are entitled to different tax and other allowances depending on the amount and type of investment.

Corporate tax allowance
The basic tax rate for corporate tax is 20%, and the allowances are the following:
Each allowance has in common that based on the Law on Corporate Tax the persons or legal entities that are taxpayers, and are entitled to more allowances and exemptions have the right to take advantage of various allowances at the same time, so they can be used cumulatively.

Stimulation of investments:
If you have invested at least 4 million kuna (about € 550.000), the corporate tax rate is 10% upon the profits you made on the investment for a period of 10 years as of the year of investment, if you have at least 10 employees as of the first year.  
If you have invested at least 10 million kuna (about € 1.400.000), the corporate tax rate is 7% upon the profits you made on the investment for a period of 10 years as of the year of investment, if you have at least 30 employees as of the first year. 
If you have invested at least 20 million kuna (about € 2.800.000), the corporate tax rate is 3% upon the profits you made on the investment for a period of 10 years as of the year of investment, if you have at least 50 employees as of the first year. 
If you have invested at least  60 million kuna (about € 8.100.000), the corporate tax rate is 0% upon the profits you made on the investment for a period of 10 years as of the year of investment, if you have at least 75 employees as of the first year. 
The total amount of tax allowance that the investor can use in the preferential period cannot be more than the amount of investment. The sum of the tax allowance will be deducted from the corporate tax, that is calculated as a difference of the imposed tax rate and the rate based on the allowance.
Any building site or buildings older than one year, and the value of the previously used machinery cannot be calculated to the above amount of investment.
Trading companies that are registered to conduct shipping activities, and are actually dealing with that, do not have to pay tax after the profit they make from international shipping.

Areas under state protection in Croatia
Taxpayers, that operate on an area that is under state protection, and have more than 5 full-time employees, as well as more than 50% of the employees are living as residentials for at least 9 months in an area under state protection, as of the current regulation have to pay corporate tax for ten years as follows: 
                              No.1 group: No corporate tax is to be paid.
                              No.2 group: 25% of the imposed tax is to be paid
                              No.3 group: 75% of the imposed tax is to be paid

1. Vukovar city:

Taxpayers that operate in Vukovar city and have more than 5 full-time employees, as well as more than 50% of the employees are living as residentials in Vukovar city or in the mountains, or in an area under state protection, as of the current regulation do not have not to pay corporate tax for ten years.

1. Mountain areas:

Taxpayers that operate in the mountain area and have more than 5 full-time employees, as well as more than 50% of the employees are living as residentials in the mountains, or in an area under state protection, have to pay 75% of the  imposed corporate tax.

4. Tax-free zones:

Tax-free zones do not belong to the customs area of the Croatian Republic from customs point of view, and are especially suitable for investments for export.
A tax-free zone can be established based on a concession. The State can give a concession to establish such zone based on the request of a domestic legal entity that can prove that it is profitable to establish a zone on a specific area. 
A user can produce goods and provide services in that zone.  Accordingly, all kinds of trade and brokerage business can be made with foreign companies, except for retail trade.
A user can provide banking and other banking institution services, property and person insurance services in the zone only in relation to the activity done in the zone.  Exceptionally, banking service not related to the activity done in the zone can be carried out, based on the approval of the Croatian National Bank.
According to the law on tax-free zones the user has to pay corporate tax based on the 50% of the imposed tax rate.
A user of the tax-free zone, that constructs or takes part in a construction, investing more than 1.000.000,00 kuna (about € 140.000) in the zone, is exempted from paying coprorate tax having made the investment, up to the amount invested, for 5 years after the operation has started in the zone.
Exceptionally, the Government of the Croatian Republic can extend the above tax allowances, if the Croatian Republic has economic interests in certain zones, or in relation to certain activities in zone. The extension of the allowances can be ordered by the Government based on the recommendation of the minister of economic affairs.
As of the enforcement of the Corporate Tax Law, on activities carried out in the tax-free zones in Vukovar-Srijem County no corporate tax is to be paid for a period of 10 years  

5. Allowances in case of employment of persons with disabilities (handicapped)

A taxpayer, that has started a business with the purpose of doing professional rehabilitation activity and employing persons with disabilities, has to pay 25% of the imposed corporate tax.

Stimulation of employment, professional trainings, and re-trainings
If a corporation, that is entitled for tax and customs allowances, makes efforts to create new places of work, and achieves new, higher level of employment rate, the Fund for Stimulation of Creating New Workplaces and Employee Re-trainings can approve to give 15.000 kuna (about € 2.000) per person as one-time amount to cover the costs of employment, with the conditions that the number of new employees should not reduce for three years.
If the investor organizes professional trainings or re-trainings for the employees, the Fund for Stimulation of Creating New Workplaces and Employee Re-trainings can approve to cover 50% of the expenses of professional trainings or re-trainings.
Sharing the above costs are to be covered from the budget of the Fund for Stimulation of Creating New Workplaces and Employee Re-trainings, by giving means that have not to be reimbursed, or  loans at a favourable rate, which is assigned based on the recommendation of the Ministry for Labour and Welfare.

Reduction of duties
Equipment imported with investment purposes according to the customs tariff rule No. 84, 85, 86, 87 (except in case of cars over 1.500 cm3 engine), 88, 89 and 90 are free of duty.