Interior Minister Davor Bozinovic has presented amendments to the Aliens Act in parliament that aim to protect domestic workers, encourage the return of Croatian emigrants and secure labour for the economy.

Bozinovic pointed out that Croatia currently employs over 121,000 foreign workers from non-EU countries and 10,000 from EU countries. By October 2023, 171,140 residence and work permits had been issued, compared to around 81,995 in 2021. The changes aim to address the challenges of implementing the act while protecting the labour market.

Stricter rules for employers hiring foreign workers

An important aspect of the changes is compliance with EU law in relation to the EU Blue Card, which is intended to attract highly skilled workers. This year, 452 EU Blue Cards were issued and the period of validity will be extended from 24 to 48 months.

The residence permit for digital nomads will also be extended to 18 months. In addition, the changes aim to encourage the return of Croatian emigrants by simplifying residence conditions, extending residence permits and exempting them from income tax for five years from 2025.

The amendments introduce stricter rules for employers who hire foreign workers, particularly with regard to criminal records and undeclared work. Employers must maintain a certain quota of local workers, with the required proportions varying between 8% and 16% depending on labour demand.

Croatians have moderate views on immigrants

Restrictions on foreign labour applications will also depend on company size, with larger companies subject to fewer restrictions. A subordinate law will set accommodation standards for foreign workers and work permits will be extended from one to three years.

Bozinovic also pointed out that most Croatians have a moderate attitude towards immigrants, with younger people generally more accepting than older generations.

However, opposition MP Ante Kujundzic (Most party) criticised the amendments, arguing that the government’s policy had led to an exodus of Croatian workers while importing cheap foreign labour. Members of the parliamentary majority rejected this criticism as populist and emphasised the need for foreign workers to maintain economic growth.