Last year, Croatia exported services worth more than 1 billion euros to the USA, which is a growth of 47 percent compared to the year before. Although the growth is impressive, it is expected that by removing the last obstacle – double taxation, cooperation will grow even more rapidly. Why is the ratification being waited for so long, and how to do business with the USA in the meantime was discussed at today’s seminar on the challenges of entering the American market with a focus on double taxation organized by the Croatian Chamber of Economy, the Association of American-Croatian Professionals (ACAP) and the US Embassy .
“The US is in the top ten most important Croatian export markets and the eleventh most important trade partner of Croatia overall. The abolition of visas for the US for holders of Croatian passports was a big step in strengthening bilateral relations, but we are still waiting for the abolition of double taxation. The agreement was signed almost two years ago, and with its entry into force, we expect a reduction in operating and administration costs and the attraction of more direct investments, especially in the IT sector,” said Luka Burilović, president of the Croatian Chamber of Economy.
Direct US investments in Croatia in the period from 1993 to 2023 reached a figure of more than 600 million euros. With the fact that last year alone, investments in the amount of 25.5 million euros were recorded. This puts the USA in the top twenty countries in terms of direct foreign investments in the Republic of Croatia.
“More than a hundred American companies are already operating in Croatia and creating thousands of jobs. The cooperation and friendship between the USA and Croatia is only growing over the years. We have abolished visas, but we still have the challenge of double taxation, which mostly affects the business of small and medium-sized companies. We are at the stage of waiting for the ratification of the Treaty by the US Senate. I emphasize that there is good will on the American side, so now we are making great efforts to make this issue a priority. With our efforts and the help of the business community, I believe that we will be able to during the next year to close this story to the satisfaction of Croatian and American entrepreneurs. In addition, in order to strengthen relations, we will advocate for the introduction of a direct year-round airline,” said H.E. Nathalie Rayes, US Ambassador to the Republic of Croatia.
For Croatian IT companies, the USA is the largest foreign market, so it is expected that this sector would benefit the most from the abolition of double taxation, followed by the pharmaceutical, defense and food industries.
The USA is also an important tourist market for Croatia. Last year, almost 680,000 American tourists visited Croatia, which is an increase of 34 percent compared to the year before and shows the post-pandemic recovery of the market.
Source: Croatian Chamber of Economy