As HRturizam reports, on Thursday, the Government sent amendments to the Law on Compulsory Health Insurance and Health Care of Foreigners in the Republic of Croatia to the parliamentary procedure. They are harmonized with the Aliens Act to regulate the manner of exercising the right to health care for digital nomads. The amendments thus enable the realization of the health care right for digital nomads.
By the official definition, a digital nomad is a third-country national who is employed or doing business through communication technology for a company or their own company that is not registered in Croatia and does not do business or provide services to employers in Croatia and has been granted temporary residence in Croatia.
As Health Minister Vili Beroš explained, a digital nomad is not obliged to apply for compulsory health insurance. Still, they are obliged to bear the costs of using health care in a health institution, i.e., with a private practice health worker or other health care provider in Croatia.
By amending the Law on Foreigners, Croatia has introduced the concept of digital nomads who now have preferential tax treatment. Legal changes regulate the tax exemption for receipts of digital nomads – foreigners who work online from Croatia for other countries’ employers.
The new Law on Foreigners for Digital Nomads prescribes a tax exemption for their income based on the status thus acquired. All this to facilitate their decision to choose Croatia as a place of residence and work.
This way of regulating their stay in Croatia assumes that digital nomads will spend their earnings here while living in our country and thus positively impact the domestic economy.
Temporary residence is granted for up to one year (possibly shorter). However, the temporary stay cannot be extended. A request for re-regulation of the digital nomad’s stay may be submitted six months after the digital nomad’s temporary stay expiration.
As Jan de Jong, the initiator of the introduction of visas for digital nomads, has repeatedly pointed out, when a digital nomad would spend at least 10,000 kunas a month on living in Croatia, which is more than realistic, for about 50,000 potential digital nomads (as many as there are in Bali), that would mean a revenue of about 500 million kunas a month into the Croatian economy.
At the moment, the publication of the online system for electronic submission of applications for digital nomads is still pending and will be done soon. But before that, the Ministry of the Interior announced the procedure for obtaining visas for digital nomads.
To read more about digital nomads in Croatia, follow TCN’s dedicated page.