An effective migration policy is needed as part of Croatia’s strategy to address structural labour market shortages, promote innovation and productivity, and contribute to alleviating the financial pressures on the social protection system in a context of a rapidly shrinking and ageing population. As part of this, a comprehensive integration policy that helps migrants quickly become part of the Croatian society and permit Croatia to reap the benefits of their talents and capacities is needed. Croatia’s diverse and highly skilled diaspora harbours significant potential for the economic development of the country.
OECD Reviews of Labour Market and Social Policies: Croatia 2025
In response to growing labour shortages, worsened by the high outmigration of people from Croatia after EU accession in 2013, Croatia changed its immigration policy. This happened initially by substantially raising the quotas of third-country nationals (TCNs) who could come to work in Croatia in 2017, then by abolishing the quota system in 2021. This shift in policy lead to a surge in the inflow of TCNs into the country (see Chapter 2) but was not underpinned by any well‑defined migration strategy. The sudden increase in the recruitment of TCNs, notably from Asia, mostly reflected rather opportunistic activity by recruitment agencies in origin countries, who made a flourishing business out of matching – mostly low‑skilled – workers with Croatian employers. This came at a time when migrants from Bosnia and Herzegovina and other Western Balkan countries were increasingly seeking opportunities in other EU countries, notably as a result of the rising cost of living in Croatia.
4.1.1. Legislative changes have made immigration more responsive to labour market needs
Croatia passed the new Aliens Act in 2021 to replace the quota system, which was too rigid to appropriately respond to a rapidly evolving labour market, with a labour market testing regime. The new model, similar to those in most European OECD countries, is better adapted to respond to the changing labour market circumstances and Croatia’s growing skill needs. As of January 2021, employers wishing to hire a TCN first get in touch with the Croatian Employment Service (CES), who conducts a labour market test to evaluate whether there are suitable candidates for a vacancy in the unemployment registry and refers any such candidates to the employer. If a referred worker is hired for the job, or if the employer rejects a jobseeker without sufficient justification, the CES refuses the request for a TCN. Vacancies in certain occupations that are difficult to fill are exempt from the labour market test, though a positive opinion by the CES is still required. This holds for professions such as cook, mason, locksmith and waiter. The list of shortage occupations, which the CES Governing Board adopts considering supply and demand in the national, regional and local labour markets, can be easily adapted to changing labour market conditions.1 A series of amendments to the Aliens Act that came into effect in 2025 increased requirements and responsibilities for employers who hire foreign workers while extending the rights of foreign workers.
Croatia is also improving its policies to attract and retain high-skilled immigrants, although migration policies in this area have mainly been shaped by EU directives. With the amended Aliens Act Croatia extended the maximum duration of the EU Blue Card2 permit from two to four years. The number of EU Blue Cards that Croatia granted more than quadrupled between 2018 and 2023, from 80 to 400, which relative to population is higher than in most EU countries. To attract international students, Croatia launched the Study in Croatia initiative that promotes Croatian higher-education institutions abroad.
The Aliens Act also introduced a temporary stay permit for digital nomads enabling foreign nationals without local company sponsorship to work in Croatia for up to 18 months if they can provide proof of a certain minimum monthly salary, currently around EUR 3 300. This scheme aims at attracting highly skilled foreigners and boosting economic activity and innovation. However, the labour market impact of such temporary stay permits is generally doubtful, as remote workers with foreign revenues only contribute to the economy via consumption (OECD, 2022[1]).
4.1.2. The administrative burden associated with recruiting third-country nationals remains high
The labour migration model places a high administrative burden on public authorities, and the rapid increase in the demand for work and stay permits since 2017 has met insufficient administrative capacity. At the CES, about 45 counsellors conduct the labour market tests, with assessment times being relatively fast, at about two to three days. But while the Ministry of the Interior generally aims to issue permits within two weeks, processing times can take longer in reality, about 38 days on average in 2024. The slow process currently represents a hurdle for the recruitment of TCNs, both for employers and foreign workers.
The government has therefore been working to reduce the administrative burden and speed up the process, notably through digitalisation. The 2025 amendment to the Aliens Act allows TCNs to stay for up to three years and to change employers without having to re‑apply for a permit, which should contribute to reducing the burden on all sides. It should also promote labour mobility among migrants, hence contributing to a better utilisation of their skills, relative to the current rules that essentially lock TCNs into the jobs they were originally hired for.
Located on the primary migratory route towards the European Union, Croatia has become an important transit country and is faced with significant and increasing inflows of irregular migration. This has been true especially since the 2015/16 refugee crisis, and notably Hungary’s decision in September 2015 to close its borders with Serbia, which reoriented flows of asylum seekers to Croatia (Goldner Lang, 2018[2]). Most migrants who illegally enter the Croatian territory come through the borders with Bosnia and Herzegovina and Serbia and travel directly on to Slovenia without applying for asylum. Of those who do, most are from Syria, the Russian Federation, Türkiye, Egypt and Afghanistan.
Croatia’s accession to the Schengen Area reinforces this challenge as it makes entry into Croatian territory much more attractive for TCNs. Croatia is now responsible for controlling the external Schengen maritime borders and land borders with the non‑Schengen countries Bosnia and Herzegovina, Montenegro and Serbia. Already in 2022, the number of illegal border crossings substantially increased; from January to May 2023, the number of expressions of intention of asylum applications then soared by 700% compared to the same period in the previous year, a significant share coming from Afghanistan and Russia. More recently the numbers have been showing a clear downward trend.
To meet the entry criteria into the free mobility zone, Croatia has taken steps to strengthen border checks and controls. The country notably signed readmission agreements with Bosnia and Herzegovina and Serbia but effectively implementing readmission with these countries has proven difficult. The visa-free regime implemented in some neighbouring countries, such as Serbia, adds to the challenge of controlling irregular flows. Some NGOs have criticised Croatia in recent years for conducting pushbacks of irregular migrants at the Bosnian border without proper assessments of migrants’ asylum requests (ENNHRI, 2021[3]). In response, Croatia has taken recent steps to ensure that the rights of TCNs who try to enter the Croatian territory are respected. The Croatian Ombudsperson carried out investigations into illegal treatment of migrants at the border and gave recommendations. As a result, the Ministry of the Interior established in 2021 an independent Monitoring Group in charge of assessing border controls and monitoring the actions of police officers at the border. The Monitoring Group carries out announced and unannounced visits to border control points and in reception centres. The Monitoring Group also received access to the information system of the Ministry of the Interior.
4.1.3. Croatia lacks a comprehensive long-term migration strategy
Croatia currently does not have a clear strategy in place that would spell out the role that immigration can play for the country’s longer-term economic, labour market and social development, i.e. beyond just addressing the countries’ immediate skill shortages. Presently, TCNs can immigrate to Croatia if they can obtain a work contract, which – as in many European OECD countries – makes immigration entirely driven by current employer demand. Such a system may satisfy Croatia’s immediate labour needs, but it has no well-defined role in helping to address the longer-term challenges arising for Croatia with its rapidly declining and ageing population and a transforming labour market. As in many European countries, the system also does not take into account some of the longer-term implications of current immigration, such as family reunification, and the future employability of workers in the event of job loss. There is evidence also that a substantial share of TCNs who are brought into the country by Croatian employers get posted to other EU countries, thus contributing little to satisfying Croatia’s skill needs (see Box 4.2). Plans to develop a new migration policy have progressed little, but the Demographic Revitalisation Strategy up to the year 2033, adopted in March 2024, foresees the development of a national migration plan.
Croatia has become a significant posting1 country in the EU, with only Slovenia, Luxembourg, and the Slovak Republic having posted more workers relative to their active population in 2021. The estimated number of workers posted abroad from Croatia increased more than sixfold since EU accession in 2013, to about 55 0 002 in 2021.
The sectors in which workers from Croatia are posted are the same in which work permits are being issued to TCNs, which suggests that posted workers have been an important driver of labour migration from third countries to Croatia. Almost half (46%) of posted workers from Croatia who work in a single European country are in construction; among the increasing number of posted workers active in two or more countries, most are in freight transport by road (42%) and industry (36%, of which again 15% in construction). Meanwhile, the construction sector accounted for 43% of all work permits issued to TCNs in 2022.
This pattern of posting foreign workers raises concerns. Posted workers are generally less likely to be informed about the risks of posting, their rights, and receive less training than local workers (Butković, Samardžija and Rukavina, 2022[4]). This may be an issue particularly in sectors such as transportation and construction, where compliance and inspections of working hours and working conditions can be difficult. More generally, while posted abroad, TNCs get little opportunity to contribute to, and integrate into, Croatian society. Caution may be needed such that Croatia’s labour migration system does not develop into a revolving door for posting workers abroad. Croatia transposed the EU Directive on the Posting of Workers in July 2020, which aims at providing greater protection for employees posted abroad.
1. Employees of Croatian companies may be posted abroad within the European single market for the purposes of short-term cross-border provision of services. Posted workers are regulated by a 1996 European Directive and by a 2014 Directive. Wages must be paid according to standards in the country of employment, while social contributions and coverage remain in the home country.
2. Those estimates are based on the number of A1 portable documents issued by sending and receiving countries and do not cover very short-term postings.
As previous immigrants mainly originated from neighbouring countries and shared cultural and linguistic similarities with Croatians, Croatia has never had to invest in more comprehensive integration policies targeted to the whole migrant population. Most foreign-born people in Croatia speak the language and fare well in the labour market, with employment being higher and unemployment lower than for the native‑born population (OECD/European Commission, 2023[5]). However, as the origin of the foreign‑born population evolves, greater attention to integration will be required.
4.2.1. Integration support is currently limited to beneficiaries of international protection
Current integration measures for migrants in Croatia are targeted largely towards beneficiaries of international protection, and the latest 2017‑2019 Action Plan for the Integration of Persons who have been granted International Protection expired without replacement. In the absence of a new Action Plan, a few single projects have been developed: INCLuDE, for example, a project launched in 2020, aimed at improving the development and monitoring of national integration policies, strengthening co‑operation between stakeholders in local and regional self-governments, and raising awareness among the general population about the integration of beneficiaries of international protection. Integration services are primarily financed through EU funding. They are mostly delivered to newly arrived migrants by civil society organisations, such as the Red Cross and the Centre for Cultural Dialogue and on a case‑by-case basis. One other group currently benefiting of integration services are returning diaspora members, to whom the Central State Office for Croats Abroad (CSOCA) provides family and individual integration guidance, especially focussed on language learning (see Section 4.3). A new draft National Programme for the Integration of Persons Granted International Protection, which had been prepared by the Government Office for Human Rights and the Rights of National Minorities, was never adopted.
4.2.2. As immigration is rapidly rising, Croatia urgently needs a systematic and comprehensive integration policy
Croatia needs a comprehensive integration policy to be able to fully exploit the skills and potential of its growing number of immigrants from diverse origins and ensure that they can thrive in, and contribute to, Croatian society. Such an integration policy will have to be much broader in scope than existing initiatives, supporting all TCNs and their families. It should include the following elements:
Offering language and orientation courses to new arrivals. The main current challenge for migrants’ integration in Croatia is the shortage and lack of continuity in language learning. Establishing quality language training programmes can facilitate immigrants’ access to basic services and labour market opportunities and help them build social connections with the native‑born population. The Resettle in Croatia mobile phone application introduced in 2021, which offers beneficiaries of international protection information on their rights and access to basic services, such as healthcare and housing, in various languages and includes an audio dictionary is a good step in this direction. Another part of the strategy could be vocational language courses tailored to sectors with skills shortages. Co‑operation with employers in developing such courses can be crucial for their success.
Informing TCNs of their basic rights. Mechanisms must be in place to guarantee that migrants are aware of their rights, especially regarding access to healthcare and social services. Basic labour rights and health and safety at work are other key areas, notably for migrant workers in the construction sector. Such information should be provided soon after immigration, possibly in direct collaboration with employers.
Facilitating and accelerating the recognition of foreign qualifications. The current process for recognising foreign qualifications in Croatia can be lengthy, bureaucratic, and costly. This leads many to occupy a job that requires skills below their level of education, thus preventing the efficient utilisation of migrants’ skills. Streamlining and accelerating the recognition process, and permitting partial recognition combined with bridging courses, as done in some OECD countries (OECD, 2023[6]), can enhance the labour market integration of TCNs.
Combatting discrimination and racism should be another key aspect of integration policy, particularly as Croatia experiences a shift in the ethnic composition of its foreign-born population. According to survey data, negative attitudes towards people from other ethnic or religious groups are relatively widespread in Croatia in EU comparison (see Chapter 2). Croatia’s 2009 Anti-Discrimination Act introduced the Ombudsperson as the responsible body to address discrimination issues, and a number of Action Plans have focussed on this issue. In 2023, Croatia adopted the National Plan for the Protection and Promotion of Human Rights and Combating Discrimination until 2027. Complimentary actions are necessary to ensure that immigrants feel accepted and are not discriminated against in their access to employment, housing, or healthcare. For instance, the Office for Human Rights introduced, in 2023, online vocational courses for social workers on non-discrimination in the welfare system. Projects such as Croatia’s New Neighbours, which notably aims at conducting media campaigns to highlight the positive contributions of refugees, are important to raise awareness about immigration and discrimination.
Croatia has a very diverse and highly skilled global diaspora counting about 3.2 million people spread over 30 countries, mainly in Western Europe and overseas. More broadly, Croatia officially recognises the broader community of Croats Abroad, which besides the Croatian emigrants and their descendants in European countries and overseas includes the Croatian National Minority present in 12 European countries and the Croats of Bosnia and Herzegovina. Many members of Croatia’s diaspora are well-educated, with more than one‑in-six of all Croatian-born tertiary educated individuals residing in OECD countries alone.3 The skills, know-how and capital of these people represent an invaluable asset for Croatia’s economy and society. But while many members of this community continue to maintain close social and emotional ties to their country of origin, it can be challenging to effectively tap this potential to the benefit of Croatia’s economy.
4.3.1. Croatia has made diaspora outreach a policy priority
Croatia has long been recognising the diaspora’s potential for the country’s economic development as a source of remittances, knowledge transfer, and return migration. Between, 2013 and 2024, the share of personal remittances received by Croatian households increased from 4.6% to 7.3% of total GDP, double its 2008 level, and much above that of any OECD country. By comparison, Hungary and Slovenia receive 2.3% and 1.2% of GDP in remittances (Figure 4.1, Panel A). The generation of Croatian emigrants who left the country after EU accession, often to earn substantially higher incomes abroad, have been contributing to the increase in remittances, as has been a wave of financial support following the 2020 earthquakes (Figure 4.1, Panel B).
Note: OECD is a weighted average.
Source: World Bank (2025), World Development Indicators (indicator) Personal remittances, received (% of GDP), (accessed 11 August 2025).
While no specific policies are in place to solicitate such remittances, Croatia has adopted a strategic diaspora policy with a primary focus on engaging and connecting with its diverse diaspora and encouraging and facilitating their return (Tomić, Hinić and Hrstić, 2022[7]). Based on these strategic directions, the 2011 Act on the Relations between the Republic of Croatia and Croatians outside the Republic of Croatia strives to promote co‑operation in various areas, including business. The CSOCA, established in 2012, plays a central role as the primary contact point for emigrants considering a return to Croatia, and provides assistance for return and successful (re)integration through its Welcome Office. The diaspora is also politically represented through three dedicated members of parliament, who represent the diaspora’s interests.
To encourage the return of diaspora members, Croatia recently facilitated the acquisition of Croatian citizenship for descendants of emigrants. The 2020 amendment of the Citizenship Act grants diaspora members access to dual citizenship and eliminates any generational limit of ascent to establish affiliation with the Croatian people. Easier access to citizenship can incentivise the diaspora to invest in a future in Croatia by fostering their sense of belonging to the society, including by permitting participation in elections and providing access to fundamental rights. Following the 2025 amendment to the Aliens Act, diaspora members and their family are eligible for a two‑year temporary residence permit that allows them work, engage in self-employment or access educational programmes, with the immediate option of applying for Croatian citizenship.
Various programmes aim at reaching out to and incentivising emigrants and their descendants, particularly the young and highly educated, to return. Students from the diaspora have access to special enrolment quotas at higher education institutions and scholarship programmes to learn the Croatian language. Croatia also developed initiatives to help young descendants better connect and identify with their parents’ country of origin, including through the Homeland Summer School. Croatia has also taken steps to encourage diaspora members to return and invest in the country. Most importantly, the “I Choose Croatia” (Biram Hrvatsku) programme promotes self-employment by providing Croatian citizens abroad who move to Croatia a EUR 27 000 grant to start their own business. Initially only targeting recent emigrants living in EU countries, the programme was extended to diaspora members from seven overseas countries. Tax measures also exist to encourage future pensioners to settle in Croatia, including those from the diaspora.
4.3.2. Croatian emigrants and their descendants are starting to return, but some face challenges with integration
As living standards in Croatia converge towards those of higher‑income EU and OECD countries, the CSOCA has been observing a growing interest in return migration among members of the Croatian diaspora. While the precise extent of return migration is difficult to ascertain for lack of data (see Chapter 2), the CSOCA reports that Croatian citizens returning from abroad accounted for 16% all immigrants in 2023, with the largest share coming from Germany. Diaspora members mainly return for family reasons, for example to care for elderly family members.
A large part of Croatia’s diaspora results from recent waves of emigration, notably to other EU countries, and would require little integration support in case of a desired return to Croatia. By contrast, potential return migrants from the diaspora overseas still encounter different obstacles to return and (re)integrate, some of which are similar to those faced by immigrants more broadly. Integration needs vary depending on the origin country of potential returnees. For example, the language barrier is a significant challenge for many diaspora members born in Latin American countries, particularly in navigating initial administrative procedures and accessing basic services such as healthcare. This group also faces challenges in transferring their social security rights and benefits. Administrative hurdles, which represent a challenge also for emigrants in EU countries, hinder access to support programmes. Take‑up of initiatives such as the “I Choose Croatia” programme is therefore low.4 For return emigrants who do not have a family home in Croatia, high housing costs are often a deterrent factor.
There is potential for Croatia to further improve on its well-developed diaspora outreach and integration policies along several dimensions:
Reaching out to and attracting potential return migrants. Croatia could strengthen the accessibility to counselling services for Croats abroad and implement tailored outreach strategies towards specific groups within the diaspora, such as investors or business communities. Additional incentives could encourage recent emigrants in EU countries to return to Croatia.
Efficiently administering return requests and ensuring access to integration programmes and subsidies. This could imply reducing administrative burdens and simplifying application processes. A further digitalisation of operational services used by the CSOCA’s Welcome Office could strengthen access to existing programmes and services. The recent launch of an e‑Citizen platform, well-received by the diaspora, is a positive step that Croatia could build on.
Expanding and improving integration or reintegration services. Ensuring diaspora members from non-EU countries have access to social services and rights is key for their successful integration. Croatia is working on expanding treaties to avoid double taxation, as the one signed with the United States in 2022. Bilateral agreements with emigrants’ main countries of residence can facilitate the recognition of foreign qualifications.
Improving data collection on emigration and the diaspora to better target policies and initiatives. Mapping Croatia’s heterogenous diaspora is crucial to adapt and target outreach policies and strategies.
References
[4] Butković, H., V. Samardžija and I. Rukavina (2022), Foreign Workers in Croatia: Challenges and Opportunities for Economic and Social Development, Institute for Development and International Relations – IRMO, https://irmo.hr/publications/foreign-workers-in-croatia-challenges-and-opportunities-for-economic-and-social-development/.
[3] ENNHRI (2021), National Report on the situation of human rights of migrants at the border. Ombudswoman of the Republic of Croatia., European Network of National Human Rights Institutions (ENNHRI), https://ennhri.org/wp-content/uploads/2021/08/Croatian-National-Report.pdf.
[2] Goldner Lang, I. (2018), “Croatia and EU Asylum Law: Playing on the Sidelines or at the Centre of Events?”, SSRN Electronic Journal, https://doi.org/10.2139/ssrn.3108392.
[6] OECD (2023), Introduction Measures for Newly-Arrived Migrants, Making Integration Work, OECD Publishing, Paris, https://doi.org/10.1787/5aeddbfe-en.
[1] OECD (2022), “Should OECD countries develop new Digital Nomad Visas?”, OECD Migration Policy Debates 27, https://www.oecd.org/migration/mig/MPD-27-Should-OECD-countries-develop-new-Digital-Nomad-Visas-July2022.pdf.
[5] OECD/European Commission (2023), Indicators of Immigrant Integration 2023: Settling In, OECD Publishing, Paris, https://doi.org/10.1787/1d5020a6-en.
[7] Tomić, C., K. Hinić and I. Hrstić (2022), “Croatia’s Diaspora Strategy”, in Routledge International Handbook of Diaspora Diplomacy, Routledge, New York, https://doi.org/10.4324/9781003031468-11.
← 1. Since 2021, the shortage occupations list has been expanded four times.
← 2. An EU Blue Card gives highly qualified workers from outside the EU the right to live and work in an EU country, provided they have higher professional qualifications, such as a university degree, and an employment contract or a binding job offer for at least one year with a high salary compared to the average in the EU country where the job is.
← 3. The emigration rate to OECD countries for Croatian tertiary-educated individuals is estimated at 17% as of 2020, surpassing that of any OECD country. It is defined as the ratio between the number of emigrants from a specific country living in OECD countries and the total sum of the resident population of this country and the emigrants from this country living in OECD countries. These estimates are based on the 2015/16 Database on Immigrants in OECD Countries, 2020 United Nations data, the EU Labour Force Survey, and Census data.
← 4. By July 2023, 216 requests for participation in the I Choose Croatia programme had been approved.