All posts by Peter Bury

By Peter Bury, Editor at Crodiaspora and Politicorp

Since leaving Croatia due to various political, economic and social reasons, much of the Croatian diaspora has been looking for ways to reconnect with their Homeland in a meaningful way. Now, as Croatia makes strides in the direction of democracy and a capital-driven economy, Croatians from abroad have a prime opportunity to take part in the country’s progress through real estate and development.

Moderated by Don Markušić, a successful lawyer and returnee from Australia and Vice President of Crodiaspora, this year’s Crodiaspora Summit included a professional panel highlighting the quality of Croatia’s real estate environment. By hosting knowledgeable experts in law, architecture, real estate, and municipal politics, this panel is highly applicable to those with interest in commercial, residential, or agricultural investment in Croatia.

Monika Maretić, a Partner at the Markušić and Maretić law firm, points out that Croatia’s legal system has taken significant steps in recent years to construct a more conducive investment climate for diaspora and foreign investors alike. Still, though, she says that the implementation of these legal reforms will take time to gain consistency across the country’s economic and social systems especially as they pertain to foreign investment.

Additionally, Ernest Svažić, Mayor of Krapinske Toplice, speaks to the substantial improvements that he has seen on the local scale within Croatia. Svažić talks about how digitization of records and investment processes has enhanced transparency across the board, leading to a more stable investment climate. Patrick Franolić, Managing Director at Spiller Farmer Real Estate, addresses the fact that since joining the European Union, Croatia’s legal and transaction security has grown to a level comparable to other developed European nations.

While Croatia’s investment climate has certainly improved by a great degree, it is important that diaspora investors are prepared to do business in a different way than they would in a country like the United States, Canada, Australia, or even Germany. There is no doubt that the level of corruption in Croatian business has diminished over the last thirty or so years of democracy, but at the same time, the nation still has bureaucratic strengths and weaknesses which shape the way that businesses is done. At the same time, Franolić explains that in Croatia, it is very often the case that the minimum amount required to invest in certain projects is less than it is in many Western European countries. This, accompanied by lower costs, yields reliably higher returns in Croatia than in nations like Germany and the United Kingdom.

Martina Kustra, an architect and Director at Axsis Projects, speaks to her experience with clients and reaffirms that investment in Croatia does in fact yield higher returns than that in other European nations. A lot of Kustra’s clients come to Croatia purely motivated by business as opposed to having ancestral ties, and that alone qualifies the investment climate there as one of the more accommodating and facilitative on the continent. She goes on to say that particularly with small investments, many of her clients have seen profits within six months of investing and often see returns of eight to ten percent, which is formidable for a country in the European Union.

From a legal perspective, it is especially applicable to the diaspora that land registries and other documents and registries pertaining to land transfers, including inheritances, are consulted. Bureaucratic nuances are to be carefully followed in Croatia if real estate investments are to go through without significant delays. Maretić emphasizes that the land registry is the sole indicator of land ownership in Croatia, and unfortunately, sometimes when land is bought before consulting the registry, rivalling land claims arise.

Another key factor in planning and carrying out real estate investment in Croatia is the local zoning arrangement. Kustra explains that although zoning challenges can sometimes be easily resolved by consulting with local planners and politicians, there are cases where some real estate investments are simply not possible in a particular area due to a prioritization of local development strategies.

As far a commercial investment is concerned, Svažić puts forward his experience with potential investors in his community as advice for other local governments in Croatia seeking to attract foreign investment. While the European Union provides its own incentives for certain kinds of investments like green technology, Svažić doubled down on this when dealing with investors by offering additional benefits for sustainable buildings as well as for investors who open new workplaces and increase their employment.

Overall, Croatia offers one of the most favourable real estate investment climates in Europe. Encompassing both residential and commercial development, Croatia offers some of the most sought after properties which are very capable of yielding competitive returns in a crowded European market. Bureaucratic and legal reforms over the last few years have directly supported investment in Croatian real estate, and members of the Croatian diaspora are particularly encouraged to use these means to reconnect with their Homeland and contribute to its flourishing economy.

By Peter Bury, Editor at Crodiaspora and Politicorp

A nation is built by its people and stabilized by its institutions. Croatia is a nation still under construction, and while Croatians abroad and in the homeland alike seek to reform and refine the systems that govern our country, there is still much to be done. As part of this year’s virtual Crodiaspora Summit, prominent lawyers and members of the Crodiaspora executive team, Don Markušić and Monika Maretić provide a comprehensive overview of the legal system in Croatia especially as it pertains to the business and investment environment.

One major flaw with the Croatian legal system is the often-obstructive intersection between the realms of law and politics. Marion Duzich, a returnee businessman from Texas has allegedly encountered firsthand the troubles that diaspora investors face in dealing with local political barriers, and has hired Markušić and Maretić to support his and the people of Croatia’s interests.

An expanding resort faces problems with the municipality

About twenty years ago, Duzich returned to Croatia and purchased the then-government-owned Supetrus Hoteli in Supetar on the island of Brač. In 2005, Duzich acquired a football pitch adjacent to his hotel complex, hoping to build a public parking garage to alleviate the issues the city has with parking during the tourist seasons. Understanding that this would leave Supetar without a football pitch, Duzich offered out of good will to build a state of the art pitch about three kilometres away which would include brand new bleachers, changing rooms, a snack and coffee bar, and accommodating parking.

 Despite his best intentions for the people of Supetar, the city’s mayor has allegedly continuously blocked and stifled Duzich’s attempts to bring significant investment into the city in direct partnership with the local people. For Croatia to prosper, it is important that Croatians, domestic and abroad, recognize that a cooperative and united business environment is needed. Alleged legal issues like this are precisely the reason why Croatia continues to be held back from social and economic growth, and it is the responsibility of the Croatian people to elect representatives who strive to see local communities succeed.  

Represented by Don Markušić and Cherie Blair, wife of former British Prime Minister, Tony Blair, Mr. Duzich is suing the Republic of Croatia in Washington D.C.’s arbitration courts due to the alleged actions of Supetar’s mayor for violating the Croatia Bilateral Investment Protection Treaty with the United States.

Lawyers comment on the legal system

With legal institutions in Croatia still not entirely refined, the system as a whole faces several major challenges. Maretić explains that the majority of shortcomings associated with Croatia’s legal system stem from unreasonable delays for proceedings, a judiciary lacking specialization, and inconsistencies in court judgements. Citing a popular legal maxim, Maretić points to the fact that “justice delayed is justice denied”. In this, she underlines the importance of having court rulings and legal judgements take place within a reasonable period of time, respecting the rule of law and the democratic rights of individuals which are guaranteed by the Croatian constitution.

In many cases, the court delays are a consequence of the fact that there either are not enough judges to take on the vast number of cases on a timely basis, or that there are not enough specialized judges to take on specific cases. Although recent years have seen extensive efforts to curtail this problem, reinforcing institutions as complex as judiciaries takes significant time and resources, meaning that this particular institutional reform will be a slow process over a number of years.

Because of the lack of attention paid to the needs of the courts, Croatia’s legal system has suffered inefficiencies and deficiencies for much of its history. One such issue is that there are too many courts across which judges and legal clerks are spread too thin. Consolidating courts and their respective staff would alleviate much of the strain of the federal Ministry of Justice, allowing for more thorough legal reviews and audits.

In Summation

While it is clear that Croatia still faces an uphill battle to refine its legal system, recent years have shown promise in this endeavor. For example, the last few years have seen the backlog of cases reduce by over thirty percent as well as a drop in the average length of court proceedings. Additionally, since 2019, court judgements and legal submissions can be downloaded, adding to the transparency of the legal environment in Croatia.

Going forward, responsibility must be taken up by all participants in Croatia’s legal and business environments to push for positive reform and development of Croatia’s legal sector. A strong legal environment is one of the most crucial selling points in attracting foreign investment, which is a direct pathway to build bridges between Croatia’s diaspora and the homeland.

By Peter Bury, Editor at Crodiaspora and Politicorp

It is a common understanding that education must be at the centre of any developing democracy or economy in order to achieve significant progress. As Croatia now faces a period where its long term success as a pertinent economic player in Europe is dependent on its ability to retain and expand its labour force, it is important to support the domestic education system through all accessible means.

To a great degree, this involves establishing first-class opportunities for Croatian diaspora to return to Croatia through education. 

Edward Bernays

Adrian Beljo, Vice Dean at Edward Bernays University College, stresses that one of the facilitative tools that Croatia uses to its advantage in the realm of education is the Erasmus+ Program.

The program is sponsored and funded by the European Union and allows students to study abroad all throughout Europe. For Croatia, participating in the Erasmus program is extremely advantageous from a domestic perspective as it builds bridges with young, intelligent students with aspirations of all kinds. Because the program is so effective, it is often used as a pathway for Croatian students from the diaspora to experience the country through education and during this time to consider the realities of moving to Croatia full-time. 

Watch Edward Bernays’ spotlight by clicking here.

Zagreb School of Economics and Management

Perhaps one of the most highly thought of institutions of education in Croatia, the Zagreb School of Economics and Management has in the last few years tailored its operations to directly accommodate promising English-speaking students from around the world to study there.

Mato Njavro, Dean and Finance Professor at ZSEM highlights the institution’s gold-standard international accreditation as one of the factors that is most compelling to international students and particularly those of Croatian descent. Additionally, ZSEM is one of the most widely recognized schools in Croatia, in large part due to the fact that all of its programs are offered in English so that non-Croatian speaking students can be seamlessly integrated into their promising student body. 

Jozo Kolakušić, a Croatian returnee from Australia and current MBA student at ZSEM, praises the institution’s exceptional capacity as an educator. As a returnee, Kolakušić highlights the extraordinary quality of life in Zagreb as well as the integrated social atmosphere as key factors in attracting young Croatians from around the world to return through education.

He also points out that as a budding financial centre in Europe, top firms look to ZSEM graduates as top contenders for executive positions not only in Croatia but Europe at large. Nikola Francetić, a Croatian returnee from Argentina who is also a student at ZSEM reaffirms the importance of course delivery in the English language. Having studied in various places around the world including Hong Kong and the United States, Francetić says that this is always a decisive factor for international students. 

Watch ZSEM’s spotlight by clicking here.

Croaticum and Croatian Studies, University of Zagreb

Although it is important to have opportunities in education delivered in the English language, the main goal for Croatia has to be enticing young and ambitious professionals, particularly from the diaspora to move to Croatia and contribute through investment and other business ventures.

To promote social and cultural integration, the University of Zagreb has since 1962 boasted an extremely effective institution, Croaticum, for learning Croatian as a second language. Sanda Lucija Udier, an Associate Professor at Croaticum, outlines the extensive language training offered through the program. She explains that each semester, students send about 225 hours in class while extensive homework in writing and reading are also suggested to reinforce language proficiency.

For members of the diaspora, the Croatian government has partnered with Croaticum to provide Croatian students from abroad with stipend while studying at the institution, as well as funding a free online version of the programs. Touting a high success and satisfaction rate, including many alumni who stay in Croatia full time, Croaticum represents a key pillar in Croatia’s targeted education system for bringing back members of the diaspora. 

Watch Croaticum’s spotlight by clicking here.

Through the University of Zagreb, many students coming from the diaspora have found great opportunities studying at the Faculty of Croatian Studies. With a larger program focus on social sciences, the faculty has brought together countless young individuals of Croatian descent from countries including Chile, Argentina, Germany, and New Zealand, among many others. In doing so, the faculty is successfully integrating diaspora into Croatian society, but in such a way that allows them to foster lasting and meaningful relationships that will support them in achieving their career ambitions in Croatia. 

Watch Croatian Studies’ spotlight by clicking here.

Rochester Institute of Technology

Croatia also boasts an extremely successful branch of the Rochester Institute of Technology, which is a private American university based out of Rochester, New York but with campuses in Croatia, Dubai, China, and Kosovo. Katarina Županjac, a recruitment and enrollment specialist with RIT Croatia gives an overview of the school’s undergraduate and graduate programs, largely focused in business, computing, sciences, and technology.

What really distinguishes the RIT Croatia experience is its required co-op program which ensures students have between 800 and 1200 hours of quality work experience before graduation, as well as a required study abroad term which allows students to study at any one of the other RIT campuses. Upon graduation, students receive both a Croatian and American diploma, allowing them to seek a professional career not only in Croatia but also in many other countries around the world. 

Watch RIT Croatia’s spotlight by clicking here.

Considering the extensive opportunities that these exceptional schools in Croatia have to offer, the country is well positioned to attract significant numbers of young professionals from the diaspora to return and work in Croatia. By ensuring such accommodating and high-quality education, Croatia is well on its way to building one of the most effective and skilled labour forces in Europe.

Video below

source: Croatia Week