GUIDE TO THE NEW FOREIGNERS ACT AND ORDINANCE 2026: Everything Employers Need to Know
Following the recently adopted Act on Amendments to the Foreigners Act (Official Gazette 40/25), which has been in force since 15.03.2025, the Republic of Croatia continues to adapt its legislative framework to the needs of the labor market.
On 22 April 2026, a new Ordinance on Amendments to the Ordinance on the Residence of Third-Country Nationals in the Republic of Croatia (Official Gazette 43/2026) was published which enters into force on 30 April 2026. The new legislative framework defines additional rules for the employment of third-country nationals and brings stricter conditions for employers, as well as some administrative benefits.
- Financial thresholds and conditions for employers
In order for an employer to be able to apply for a permit for foreigner employee at all (to obtain a positive opinion from the – Croatian Employment Service – CES), he must meet strict financial criteria:
- Minimum turnover (last 12 months – calculated from the month preceding the month of submission of the application):
-Legal entities must have an inflow of at least €100,000, and
-natural persons (craftsmen) at least €40,000.
- Prohibition of blockage on a business account: The employer’s account must not be blocked for more than 30 days continuously in the last 6 months.
- Domestic employees: The employer must have employed at least one employee (citizen of the Republic of Croatia/EEA) on an indefinite and full-time basis for at least one year.
- New ratio of domestic to foreign workers (quotas)
The mandatory percentage of domestic workers in relation to the total number of employees has been increased:
- 20% domestic workers: For occupations for which the Labour Market Test (TTR) is conducted.
- 10% of domestic workers: For occupations on the shortage list.
- Note: Domestic workers include citizens of the Republic of Croatia, the EU/EEA, Switzerland and Croatian emigrants.
- Labour market test (TTR) and territorial restrictions
- When it is needed: For all occupations that are not on the list of deficient occupations, when hiring for the first time in a specific position or opening a new position.
- Territorial restriction – NEW: A worker can work only in the area of the police department for which the TTR has been conducted. If the worker works in another city/county without a test for that area, the Ministry of the Internal affairs may revoke the permit.
NOTE – these changes will not affect occupations and professions that are listed as deficient at the level of the entire Republic of Croatia (such as e.g. reinforced concrete worker, bricklayer, carpenter, truck drivers, butchers, car mechanics, etc.), but they will affect professions that are considered to be in short supply only in certain areas, such as cook, waiter, valet, cleaner, salesman, etc.)
Exceptions (When TTR is NOT required):
- Shortage occupations (bricklayer, carpenter, truck driver, etc.).
The list of occupations for which the employer is not obliged to request the implementation of the labour market test – is adopted by the Croatian Employment Service (CES):
- Extension of existing permits for the same worker at the same workplace.
- Seasonal work up to 90 days.
- Key personnel in companies (directors), self-employment of third-country nationals in a company in which they have an ownership stake of at least 51%, researchers and EU Blue Card holders.
- Seasonal workers: Easier planning
- Duration of the permit: Seasonal permits can now be issued for a period of up to 3 years (instead of the previous 6 or 9 months per year). This allows employers in tourism and agriculture to plan employment of the same worker over multiple seasons without repeating the entire process every year.
- New standards for the accommodation of workers
A clear definition of the concept of adequate accommodation has been defined as a building in which the living space must have:
- sanitary facilities physically separated from the living and sleeping rooms
- running water, electricity, heating
- sufficient daylight and adequate artificial lighting
- possibility of ventilation (windows)
- equipped with adequate furniture (bed, seating furniture, table, wardrobe)
- food preparation equipment (refrigerator, stove, sink) or common area for food preparation – canteen
- Square footage: Minimum 14 m² for one person, plus an additional 6 m² for each additional person.
- Capacity: Maximum 6 people in one room with a separate bed.
- a maximum of 8 workers can stay in the apartment (although the square footage is larger than prescribed)
- a maximum of 10 workers can stay in the building for every 150 m2
- Price limitation: If the accommodation is provided by the Employer or he is an intermediary in providing accommodation – the rent must be appropriate to the salary and must not exceed 30% of the employee’s net salary (it must not be automatically withdrawn from the salary)
- Proof of health status
From April 2026, when submitting the first application for a work and residence permit, a foreign worker must enclose:
- Proof of health status: A certificate confirming that the worker does not pose a danger to public health.
- Vaccination Record: Workers must prove their vaccination status. If their vaccination coverage is not in line with Croatia’s mandatory vaccination program, they will need to be revaccinated upon arrival.
- Additional documentation
Mandatory submission of new forms to the Application for the issuance of a work permit:
- Form 17a (Accommodation Statement) and
- Form 18a (Health Status).
- Change of employer and occupation
Change of employer:
- Workers who are already in Croatia
- The one-year limit is abolished: Workers whose permit has already been issued or extended on the basis of the CES opinion can freely change employers within the validity period of the permit (without waiting for the expiration of at least one year of work on the basis of the issued permit)
- Workers who are just coming to the Republic of Croatia (First entry)
- 6-month rule: A foreign worker who is just coming to Croatia must work for the first employer for at least 6 months before he can change him under a simpler procedure.
- Exceptions (Change 6 months ago): An employee may change employer earlier without losing his license only in cases of violation of rights by the Employer, and for the sake of:
- Non-payment of salaries (checked through REGOS).
- Criminal offences against labour relations or serious offences of occupational safety.
- Court proceedings for the protection of dignity.
- What if the rules are not followed?
- If the employee wants to change employers before the expiry of 6 months (and there are no violations of rights listed above), the new employer must initiate the entire regular procedure for issuing a new work permit from scratch.
Change of profession:
Change of occupation with the same employer
The new rules allow a worker – a third-country national who has been issued a residence and work permit on the basis of the CES opinion (or has been extended) to change his or her occupation within the period of validity of the residence and work permit with the same employer – i.e. move to another job:
- No administrative burden: The obligation to initiate a new procedure – obtaining a new work permit before the Ministry of the Internal affairs and the CES – is abolished, which speeds up the process and reduces paperwork.
- Duration: A new employment contract for another occupation is concluded until the end of the term of the existing residence and work permit.
- Flexibility: The employer can more freely assign foreign workers to different jobs within his company according to current needs.
Therefore, if a worker changes jobs with the same employer, a new permit is not required (unless it concerns specific qualifications), but it is mandatory to report the change to the Ministry of the Interior.
Simultaneous change of both employer and occupation
- Old practice: A change of employer was only possible if the worker remained in the same occupation. For a new occupation, the entire regular procedure had to be started from scratch.
- New practice: It is possible to change both the employer and the occupation within the existing permit at the same time. It is not necessary to obtain a new permit, which significantly reduces waiting and paperwork.
Obligations of the new employer: Instead of a new application for a permit, only the prescribed documentation for the new job is submitted to the police administration/station:
- Employment contract.
- Proof of compliance with the requirements required in the TTR (if required)
- Proof of the worker’s competencies (for work in a shortage occupation – if it is a shortage occupation).
- Proof of adequate accommodation.
- Allowable period of unemployment
In the event of termination of the employment contract, a third-country national with a valid residence and work permit – issued on the basis of the CES opinion (or if it has been extended) – may be unemployed within the validity period of that permit (one-time or multiple) for up to 3 months, and if he/she resides in the Republic of Croatia on the basis of a permit for more than 2 years – in which case he/she may be unemployed (one-time or multiple) for up to 6 months.
- Obligation to take the Croatian language and script exam
- When necessary: Workers who have been residing in the Republic of Croatia on the basis of a residence and work permit for more than two years, and wish to extend the permit or seek long-term residence, will have to provide proof of basic knowledge of the Croatian language and the Latin alphabet (level A1). The state will provide vouchers for language courses.
- Checklist for employers (Quick check)
- Do you have the required inflow in your account (100k€ company / 40k€ craft)?
- Do you meet the quota of domestic workers (10% or 20%)?
- Is the accommodation aligned with the square footage and the limit of 30% of the salary?
- The worker works in the area of the competent police department?
This article is for informational purposes only. For operational implementation and checking the status of your workers, feel free to contact our professional team.
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