New package of measures to protect against price increases in Croatia
The new government package of measures is a response to rising inflation and the challenges of introducing the euro. Croatian citizens and businesses are facing increased living costs, which is why the government has introduced a series of measures in 2024 to protect citizens, businesses, and the public sector. Below, we provide an overview of the key measures that are still in effect.
Price cap on electricity
Households: Electricity prices for households are kept at 59 €/MWh for consumption up to 3,000 kWh over six months. For higher consumption, the price is 88 €/MWh.
Public and non-profit sector: Kindergartens, schools, universities, and other non-profit organizations have an electricity price of 62 €/MWh.
Small and medium-sized enterprises: Companies with six-month consumption below 250,000 kWh pay 62 €/MWh, providing more favorable business conditions during challenging times.
Gas price stabilization
Gas price stabilization
Gas prices remain regulated with subsidies, ensuring stability at 27.7 €/MWh for households until the end of September 2024. This measure has helped reduce overall heating costs during the season.
District heating price cap
For users of centralised heating systems, the unit price of thermal energy has not changed. This protects households and businesses in urban areas from increased heating costs during the 2024/2025 season.
Promoting the green transition
The government has continued implementing programs for energy efficiency and the green transition. Grants provide:
- Small and medium-sized enterprises: €13,272 to €995,421 to transition to a sustainable economy
- Medium-sized enterprises: up to €4,644,563 for green projects
These measures not only help ease the pressure of high energy costs but also encourage investment in sustainable technologies.
Measures for employees
Tax relief and increases in non-taxable income continued to be implemented in 2024. Key measures include:
- Occasional bonuses increased by 66.67%
- Cash rewards for work performance increased by 50%
- Non-taxable gifts for children up to 15 years old increased by 66.67%
- Employee meal allowances increased by 20%
- Allowances for using a personal car for business purposes increased by 50%
- Future retirees receive a 25% increase in non-taxable income
Financial support for companies in difficulty
The Croatian Bank for Reconstruction and Development (HBOR) has provided €504,376,432 for entrepreneurs facing financial difficulties. Subsidized interest rates of 0.5% per year and repayment terms of up to 5 years help companies adapt to new market conditions.
Support for citizens through the new package of measures
The measures to protect against price increases in Croatia in 2024 have provided significant support to citizens, businesses, and the public sector. Despite inflationary challenges, the government has managed to maintain stability in key energy prices and facilitate the transition to a green economy. For the latest information on these measures, it is recommended to regularly follow official government announcements and relevant institutions.
For additional advice on business and finance, feel free to contact us by email at info@virtual-office.hr or through the contact form.
