How to stay compliant

Employer-of-Record (EOR) in Croatia: Do You Need One?

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

How to stay compliant

Employer-of-Record (EOR) in Croatia: Do You Need One?

So you want to hire someone in Croatia. Problem is, your company is located somewhere else.  

If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in Croatia, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.  

But there’s a catch: EOR solutions in Croatia are expensive—usually at least $500 per month per employee—and can take time to set up. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own entity, they’re rarely cheap or fast.

The good news? There’s another way to hire remote workers in Croatia, and it doesn’t involve forking out huge amounts of money for an EOR.  

The solution: Hire your teammates in Croatia as contractors. If you’re hiring remotely and your teammates have autonomy, there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.

We built Thera to help you make contractor hires, in 150+ countries (like Croatia). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month.  

It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in Croatia:

Everything you should know about using an EOR in Croatia

Are you considering expanding your business to Croatia and hiring employees there? If so, you may be wondering about the best way to handle payroll, taxes, and compliance with local laws and regulations. One option is to use an Employer of Record (EOR) service. In this post, we'll explain what an EOR is, how it works in Croatia, and why you might want to consider hiring independent contractors instead.

What is an EOR?

An EOR is a third-party service provider that acts as the official employer of your workers in a foreign country. The EOR handles all aspects of payroll, taxes, benefits, and compliance with local labor laws. This can be a convenient option for companies that want to expand their operations overseas without setting up a legal entity in the foreign country.

How does EOR work in Croatia?

In Croatia, EOR services are regulated by the Labor Act and the Foreigners Act. According to these laws, foreign companies that want to hire employees in Croatia must register with the Croatian Tax Administration and obtain a work permit for each employee. The EOR service provider must also be registered with the Croatian Chamber of Commerce.

Once the EOR is registered, it can handle all aspects of employment, including payroll, taxes, social security contributions, and compliance with local labor laws. The EOR is responsible for issuing employment contracts, paying salaries, and providing benefits such as health insurance and vacation time.

Why might you want to hire independent contractors instead?

While using an EOR can be a convenient option for some companies, it may not be the best choice for everyone. One alternative is to hire independent contractors instead of employees. This can be a more flexible option that allows you to work with local talent without the administrative burden of setting up a legal entity or using an EOR.

What if I accidentally misclassify my contractors?

We’ve got two pieces of good news for you. For one, if you’re hiring remotely, it’s unlikely you’ll misclassify your contractors. Many of the things that qualify people as employees, such as company equipment and set working hours, don’t typically apply to remote work.

Still, it’s helpful to have the comfort of knowing you’re not at risk for misclassification. That’s why, at Thera, we’ve launched Misclassification Assurance: so you can hire contractors abroad, worry-free. Learn more about hiring with Thera below.

Hiring contractors? Thera can save you a ton of time

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo and see the platform firsthand

Run your global workforce on autopilot with Thera

Book a demo to get started.