The draft law on the HIR is in public consultation, aiming to mobilize billions of euros in citizens' savings from bank accounts into the capital market. Inspiration came from Slovenia, but the Croatian version, they say, is simpler and better.
The Ministry of Finance sent the proposal for the Law on the Croatian Investment Account (HIR) into a one-month public consultation two weeks ago. This new model is designed to enable citizens to invest in securities more easily and with tax advantages. It involves a specially regulated account intended for individuals. According to State Secretary at the Ministry of Finance, Matej Bule, all returns on investments within this account, as well as withdrawals from it, will be exempt from taxation as long as the legal provisions are respected.
The concept is inspired by the Slovenian individual investment account (INR), which came into effect in early March 2026 and attracted solid interest in its first five months. According to data from Davor Pavič of the Central Securities Clearing Corporation (KDD), by the end of July, the number of open INRs in Slovenia reached around 13,500, with a monthly growth of about eight percent. Estimates from local analysts suggest that this number could rise to between 30,000 and 40,000 by the end of the year. Pavič notes that experience shows "the mobilization of funds from banks to the capital market is slowly beginning."
The main features of the Croatian model, presented at Katančićeva Street by State Secretary Bule, along with Deputy President of the Hanfa Board Anamarija Staničić and Board Member Martina Verić, stipulate that every adult citizen can open one HIR with authorized intermediaries from the Hanfa list, such as banks or investment firms. Accounts can also be opened for minor children. Funds can be invested in stocks, bonds, money market instruments, UCITS funds, and ETFs from the EU, OECD, and European Economic Area markets.
The deposit limit per account is set at €200,000. However, an incentive for long-term investing is also provided: if during the first five years from account opening, funds are only deposited and not withdrawn, the limit increases by an additional €50,000, reaching a maximum of €250,000. Unlike the Slovenian INR, which has a limit of €150,000, the Croatian solution offers more room to maneuver. In addition to cash, the HIR can also be "funded" with stocks the investor already owns. All administrative obligations, including tax records, will be handled by the authorized intermediary, which can be changed without a fee, and withdrawals from the account are also possible without a fee at any time. The draft law does not regulate the amount and structure of intermediary fees, which remains under the general rules of the capital market.
One of the key conditions stipulated by the law is that one year after opening the account, at least 20 percent of the portfolio must be tied to securities on the Croatian market. This provision has sparked the most controversy in the public consultation so far. Nearly 130 comments and objections have been received, with opinions divided: some believe that due to the favorable tax treatment, this share should be even higher, while others propose reducing it to, for example, 10 percent.
Ivan Kurtović, CEO of InterCapital, strongly supports the mandatory domestic component. "It can significantly contribute to the development of the local capital market, increase liquidity of instruments listed on the Zagreb Stock Exchange, and, in the long term, encourage new issuers to list their stocks and other securities on the domestic market," he stated. Kurtović also praised the recognition of two HIR models: the classic brokerage model, where the client makes independent investment decisions, and the portfolio model, which is particularly important for new investors because portfolio structuring is left to professionals.
The tax treatment of the HIR is one of its most attractive elements. All returns within the account, including capital gains, dividends, and interest, will not be taxed. "In addition to the exemption from dividend tax and capital gains tax, the long-term nature of deposits is further encouraged with a bonus if there are no withdrawals during the first five years. Overall, this is an exceptionally good initiative that encourages small investors to direct part of their savings toward the capital market long-term, thereby creating long-term value for their personal assets in a tax-optimal way," concludes Kurtović.
Milan Horvat, founder of the Fima Group and a veteran of the domestic financial market, is confident that the HIR will generate additional liquidity and stimulate the issuance of new stocks. He also considers the €200,000 limit well-measured compared to the amounts needed for real estate investments, traditionally popular among Croats. It is also expected that the introduction of the HIR will be accompanied by an extensive campaign by investment firms and banks to attract clients.
Interestingly, the Croatian draft law has also attracted attention in Slovenia, where their business daily Finance published an article with the message: "Let's copy from the Croats. At least once!" A Finance interviewee noted that "the Croats copied the Slovenian solution and improved it," pointing to the greater flexibility and simplicity of the Croatian model. In Slovenian financial circles, questions are already being raised about whether their INR should be upgraded following the HIR example, such as increasing the deposit limit or allowing the transfer of an existing portfolio to the investment account.
How much interest the HIR could generate among Croatian citizens is suggested by the fact that they invested around €4.6 billion in treasury bills and government bonds, also tax-exempt, which accounts for approximately 8.5 percent of public debt. Moreover, during the subscription of these government securities alone, around 50,000 accounts were opened for the first time at the Central Depository & Clearing Company (SKDD), representing a base of new potential investors for the HIR. The final form of the law will be known in a few months, after the public consultation concludes and the proposal passes two readings in Parliament, and only then will it be seen whether the "devil in the details" has been successfully exorcised.
