Doing Business in Croatia | Navigating Business Culture

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Croatia, located in the northwest of the Balkan Peninsula, is a republic nation state born out of the former Yugoslavia. Situated in central and southeast Europe with its coastline lying on the Adriatic Sea, Croatia is popular destination for both tourists and businesses. The largest city is also its capital, Zagreb, located in the northwest of the country. Zagreb is also the political and economic centre and famous for its vibrant street life.

Croatian is the official language and is called Hrvatski by speakers. English is widely taught and used, especially among younger people and in business, though fluency varies with region, sector, and generation. The Croation language shares many similarities with its neighbouring Balkan languages, although Croatian is distinct in using a Roman alphabet as opposed to a Cyrillic one.

Croatia is a highly developed mixed economyin which the service sector accounts for approximately 60% of the GDP and tourism plus related sectors accounts for almost 25%. The manufacturing and industrial sector remains important and agriculture and fishing, although smaller in GDP share, still play a significant role regionally. The IT and renewable energy sectors are both emerging as priority industries thanks in part to government policy and investment.

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Business culture in Croatia

Many Croatian organisations retain traditional hierarchical features, especially state-owned or smaller local firms, but increasingly private, tech, startup, and global companies are adapting flatter, more agile, or collaborative styles.

Croatia leans somewhat to a collectivist culture compared to more individualistic Western European cultures. However, the sector, age and exposure to international business moderate this. Nevertheless, relationships generally take precedence over individual achievement, and social harmony is highly valued.

This has a direct impact on how business organisations operate. Trust and personal relationships play a critical role in business dealings, and decisions are often influenced by group consensus rather than individual initiative. Employees may show strong loyalty to their teams or leaders, and hierarchical structures tend to be respected. However, this collectivist orientation can sometimes slow down decision-making processes, as group alignment is sought before actions are taken. For foreign businesses or investors, success in Croatia often depends on building long-term relationships and understanding the cultural importance of mutual respect, collaboration, and trust within both teams and partnerships.

Croatia is a moderately hierarchical society and management styles tend to reflect this, with a blend of traditional hierarchical structures and modern European business practices. Historically influenced by collectivist and family-oriented values, Croatian organisations often maintain clear lines of authority, with managers typically making the final decisions. However, there is a growing trend, especially in international companies and among younger professionals toward more participative and collaborative leadership.

Respect for authority and seniority is still common, and employees may expect clear instructions and defined responsibilities. At the same time, personal relationships and trust play a significant role in workplace dynamics, meaning that effective managers often succeed through a balance of professionalism and interpersonal sensitivity. Adaptability is key, as management styles can vary depending on the size, industry, and international exposure of the organisation.

Croatians generally value clarity and honesty, so it’s common for professionals to express their opinions openly, but with a high degree of manners. In challenging work situations, they will still use as much tact and sensitivity as possible. This can often lead to negative news being shared in more indirect means than necessary, so it is important to pay close attention to the context of what is being said when receiving feedback. Taking the time to develop relationships with your Croatian colleagues and investing interest in them will help them open up to you more. While written communication is typically formal and structured, spoken interactions may become more relaxed as relationships develop.

When meeting someone for the first time in a business setting in Croatia it’s important to make a strong first impression. Punctuality is key. In face-to-face situations, offer a formal handshake while maintaining eye contact. Use titles and last names at first, as this shows respect for the hierarchy (e.g. Mr = Gospodin, Miss/Mrs = Gospoda). Including in a polite greeting such as “Dobar dan” (Good day) can help break the ice. Attempt to engage in small talk before getting into the meeting, as this can help establish a personal connection which is the preferred vibe in Croatian businesses.

Croatian business attires remain formal depending on the industry that you work in. It isn’t common in Croatia for gifts to be given in business dealing, but a small token (e.g. company-branded item) may be offered once a deal has been concluded but avoid anything too expensive or ostentatious. However, when visiting someone’s home it is customary to bring a gift along, for example flowers, wine or a box of chocolates.

Unless you are well-informed, it may be best to avoid any political or historical talk, except if you are expressly asked for an opinion. Croatians are proud of their heritage and topics such as the Yugoslav wars or regional divisions can cause deep offence. Instead focus on topics such as sport, food or travel in Croatia.