New Rules of the Game in 2023 (5): Due to Money Laundering, Any Cash Over 10,000 Euros is Suspicious, Less Support for Self-Employment

Money Laundering

48. The threshold for notifying the Office for the Prevention of Money Laundering about cash transactions has been reduced from the previous 200,000 kuna to 10,000 euros. This threshold applies to conducting due diligence on occasional transactions that are not carried out within the framework of an established business relationship.

49. Registration of service providers related to virtual assets in a register to be maintained by Hanfa has been prescribed, and cooperation with European supervisory authorities regarding virtual assets is also anticipated.

50. The automatic exchange of information on available types of income and assets will also include income from copyright royalties. Until now, this automatic exchange of information related to income from employment, pensions, remuneration of board members and councils, life insurance products, as well as ownership of real estate and income from property and property rights.

Pensions

51. It has been enabled for retirees to also use part of the family pension of the deceased spouse/partner in the amount of 27 percent of the corresponding part of the family pension for one member (if they are the sole beneficiary of the family pension, if they have reached 65 years of age, and if their total pension from mandatory pension insurance does not exceed 824.47 euros).

52. The pension factor for calculating the family pension has been increased by 10 percent (for one member from 0.7 to 0.77).

53. As of January 1, 2023, the lowest pensions will increase by three percent.

54. The starting factors for determining the old-age pension (with 35 years of service) and the old-age pension for long-term insured persons (with 41 years of service) are being increased.

Parental and Maternity Leave

55. A paternity leave of ten working days for one child (15 working days for the simultaneous birth of multiple children) has been introduced into the Law on Maternity and Parental Benefits.

56. An employed or self-employed parent is entitled to parental leave for a duration of eight months for the first and second born child (previously six months), or 30 months (for twins, third and each subsequent child), with each parent able to use a maximum of 28 months.

57. During the use of the right to parental leave, the salary compensation for the first six months, if this right is used by one parent, or the first eight months, if both parents use this right, amounts to 100 percent of the base for salary compensation, which cannot exceed 225.5 percent of the budget base or 955.44 euros for full-time work.

58. During the use of the right to parental leave at half of full-time, the salary compensation amounts to 110 percent of the budget base or 485.58 euros per month, and in cases when it is used for the first and second born child, as well as when it is used for twins, third and each subsequent child (throughout the entire use of the right).

59. The monetary compensation for full-time employed or self-employed parents of a child with developmental difficulties for care until the child reaches the age of eight has been increased by 78.57 percent and amounts to 551.73 euros instead of the previous 2328 kuna. In the same way, the compensation for parents working part-time has been increased.

60. These rights are granted to individuals who have six months of continuous work experience (previously nine months), or nine months with interruptions in the last two years.

Other Changes

61. Support for self-employment for unemployed persons this year amounts to up to 15,000 euros (113,018 kuna). Thus, the maximum support, which was 120,000 kuna last year, has been reduced by 5.8%, or 926.74 euros (6983 kuna).

62. State incentives for housing savings have been reduced from 0.4 percent to 0.3 percent, or from 20 kuna (2.65 euros) to 15 kuna (1.99 euros) on a deposited five thousand kuna (663.61 euros). Incentives are decreasing year by year; in 2015, they amounted to 4.9 percent, or a maximum of 245 kuna (32.52 euros).

63. We are paying 50 percent more for legal services this year. The Croatian Bar Association has raised the value of a point from 10 to 15 kuna since November 2022.

64. Permanent court interpreters must have liability insurance contracts from this year. The regulation that should detail this issue, such as the minimum insured amount, has not yet been adopted.

65. The submission of proposals for registration in land registries by mail or at the land registry office is abolished. From February 10, this can only be submitted electronically or through public notaries and lawyers. Through the application My Real Estate, citizens will receive notifications about everything happening with the properties they own.

66. The government will co-finance the costs of meals in primary schools with 1.33 euros per student per day from the second half of the year. Until now, 30 percent of primary school students had free meals, 20 percent had partially subsidized meals, and 50 percent were financed by parents.

67. As of October 1, 2022, VAT on the delivery and installation of solar panels on private and residential buildings, living spaces, and public and other buildings used for activities of public interest has been abolished.

68. The custodian in 2023 is entitled to a fee of up to 0.017 percent of the average annual net value of the pension fund’s assets. This fee is continuously decreasing; last year it was 0.018 percent, and in 2015, it was one percent of the value of the pension fund’s assets.

69. The Ministry of Justice adopted a Regulation on conducting hearings remotely using appropriate audiovisual devices and technological platforms for communication at the end of last year.