You will be drawn to lush nature, beautiful beaches, historical sites, and business opportunities.
But there is one surprising country that is rarely mentioned and that is attracting increasing attention: Croatia.
Croatia, located across from Italy on the Adriatic Sea, launched its nomadic digital visa program in January and has since received widespread attention in international and local media. The country with 4 million inhabitants is big in tourism – it has around 20 million visitors annually. For Americans, it’s an under-the-radar nation. In Europe it is known for a unique mix of Eastern European and Mediterranean culture.
Croatia, along with another small European nation, attracts foreign workers: Estonia. (I wrote about this technologically advanced country here.)
There is a man behind the Croatian initiative: Jan de Jong, a non-Croatian citizen – he is a Dutch citizen.
I had the chance to speak to de Jong about what it means to be a digital nomad in Croatia, how to get a permit, and other details you might need for your next adventure in one of Europe’s most alluring travel destinations.
Market observation: Jan, tell me a few things about yourself.
De Jong: I am 36 years old. I moved to Croatia when I was 22 and have lived here for 14 years. I have always been an entrepreneur since moving to Croatia. The first company I founded was the M + Group. It was pretty much the first company in Croatia to offer contact center services. Over the years the company grew very quickly and is now listed on the Zagreb Stock Exchange.
I left the company in 2016 and after selling my company, I started another company called Webpower Adria. Webpower Adria sells a software-as-a-service (SaaS) for sending newsletters that competes locally against Mailchimp, the most widely used email marketing solution in the region.
In 2020 I started two new projects, one of which is my new business called Crop. Our mission is to introduce Dutch agricultural technology, mainly greenhouses, to Croatia. Croatia used to be a country that could produce enough food to feed an entire region, and today we are an importing nation. The idea behind Crop is to become less dependent on food imports and ultimately to help make Croatia an export nation again.
Finally, in May 2020, I started the initiative to introduce a digital nomad visa in Croatia. I advertised Croatia as the perfect travel destination for remote workers from all over the world – I want them to visit, live and work from here.
This was before countries like Estonia officially introduced their own digital nomad visa. Shortly after Estonia launched its program, I wrote an open letter to Croatian Prime Minister Andrej Plenković on LinkedIn asking if he would be kind enough to introduce the same project in Croatia. I shared it on LinkedIn which resulted in a huge following, especially for Croatian standards, and an engagement on my LinkedIn profile. Posts on the topic of the nomad digital visa generated 2.1 million views.
MW: You mention the term “digital nomad”. What kind of people are they?
De Jong: A digital nomad is a person who is able to work completely remotely so that he or she is not tied to one place. Digital nomads are mostly software developers or IT staff, but there are also plenty of content authors, including journalists and photographers – basically jobs that don’t require working from an office. In addition to this requirement, you also need to choose this type of lifestyle: travel while at work.
MW: In October 2020 you co-founded the Digital Nomad Association Croatia. What are their goals and purpose?
De Jong: The effort for digital nomad visas was much greater than I could have imagined or managed myself. And that’s why I wanted to found an association in which other people can participate. Our mission is to unite and serve digital nomads. First and foremost, we want to provide information, whether through a website that has all the useful advice and answers to frequently asked questions, or in partnership with a larger hotel group. We want to set up a contact center that once in the country digital nomads can call whenever they need help. You can think of this as a kind of concierge service.
For example, you can call and say, “I broke my leg, where is the nearest hospital?” Or, you can ask them to recommend sights to see during your stay in Dubrovnik. We want to offer this service in six or seven languages.
Ultimately, hospitality is in Croatian DNA – more than 20% of the country’s GDP comes from tourism. With these projects I wanted to ensure that digital nomads don’t feel alone when they come to Croatia. I want you to know that there is a community here, people to ask for help. And that we are a digital nomad-friendly nation in general.
MW: In your public appearances, you said that the nomad digital visa is helpful for Croatians. How come?
De Jong: Almost 500,000 people have left Croatia in recent years. Mostly young and talented, smart people emigrate to countries like Ireland, Germany and the Netherlands because they want to find work opportunities there. Instead of losing the workforce in this way, we want to attract young and talented people …
MW: To reverse the brain drain.
De Jong: Yes exactly. We want to support the integration of digital nomads into Croatian society. We would like to involve them by offering them to give guest lectures at universities, high schools and elementary schools as I believe that they can positively influence the mindset of the younger generations here in Croatia. And that will be an important contribution to this country.
Another thing that we in the Digital Nomad Association (DNA) want to do is accept members of the business community here in Croatia, for example landlords. We want anyone who feels they have the opportunity to offer products or services to digital nomads to become part of the DNA and adhere to a code of conduct – a set of rules that we believe are important to be a good host be digital nomads.
But that’s not all. We want to organize all kinds of events where we can gather, share information and learn from each other, but also just have a good time. After all, tourists come to the countryside to see nature and enjoy the weather, gastronomy and lifestyle, all that Croatia is really known for. But in the end they would stay longer if they knew there was a community here – that’s what we want to build at DNA and part of that is hosting these events.
MW: How easy is it to apply for a nomad digital visa?
De Jong: A government website allowing digital nomads to apply online is due to be launched in March. After getting permission and arriving in the country, they will need to register with the local authorities and provide an address where they will stay during their stay. If they move, they’ll need to update this information, but that’s it.
Such things are new to us and we have to learn from our mistakes. To improve the process, we will conduct interviews with applicants. What was difficult What was easy What could have been done better? This feedback will be shared with the Home Office so that it can do its best to streamline the process.
MW: Taxation is a big problem. Are there any advantages for digital nomads?
De Jong: We tried to offer a very competitive package compared to other countries so we looked carefully at what they do – do they collect income taxes? How much? From when? What is the minimum income to apply for a visa? Is there a way to get health insurance on site? That kind of thing.
I think Croatia currently has the most competitive package on the market. For example, in Barbados you must guarantee an annual income of $ 50,000 to apply for a similar visa. In Croatia it is much less – around USD 31,514 net income per year.
We try to welcome digital nomads who would not qualify for the visa in Barbados and similar countries due to income restrictions. One thing I am very proud of is that we managed to change the tax law – digital nomads are not charged any income tax during their year of residence. We wanted to do this to avoid double taxation which can occur in certain cases. Instead of paying income tax in Croatia, digital nomads are instructed to continue paying taxes in their home country.
MW: How does this program affect the Croatian economy?
De Jong: Digital nomads will bring their purchasing power with them to Croatia. They still have to buy goods and services while they are here, which means they will pay the sales tax or sales tax. And that’s basically a new source of income for the tax office here in Croatia.
MW: Digital nomads moving to Croatia have to interact with locals at some point. What is your experience with Croatians and their English skills?
De Jong: I would say that most of the people in Croatia speak English very well. In my day-to-day business, I do everything in English and so far I have never had language problems. I try to use Croatian when I’m more casual like going to a supermarket or chatting with a taxi driver, but it could easily have been in English too. This country is heavily dependent on tourism and we are obviously very used to having a lot of foreigners in the country. Speaking a foreign language is usually not a problem for Croatians.
MW: Croatia has a unique shape and geographical arrangement – the coastal area is separated by a mountain range. How difficult is it to get from place A to place B?
De Jong: First, Croatia has a great highway, one of the best highways I’ve honestly driven on.
MW: Also by Dutch standards?
De Jong: Yes, in any case. It is so good. And it goes all the way from Zagreb to the coast. Even if I never use this service myself, buses are very good and affordable. In fact, they are so good and efficient that the locals often prefer bus drivers to post offices for transporting packages and the like. I’ve even heard of students in Zagreb who were taking their laundry home by bus to their parents to have them washed.
MW: Finally, let’s say I wanted to apply for a nomad digital visa. Where can I find out more?
De Jong: There is actually a very good article from Total Croatia News that explains the process and lists all the requirements to apply for a residence permit.