Business culture in Croatia

In any business environment, understanding business culture and etiquette is critical to success. This is especially true in Croatia, where cultural nuances significantly affect interactions with partners and business conduct.

Meetings and Greetings

As in most countries, business meetings are considered a necessity for doing business in Croatia. Most Croatian businessmen use the first meeting as an opportunity to get to know their partner, and they will need two or three meetings before they can decide whether they will do business with you.

Such meetings are used as a form of bonding between two people or a group to assess the level of trust between them before starting business negotiations. First impressions are crucial in Croatian business culture. Begin meetings with a firm handshake and direct eye contact to demonstrate confidence and respect.

Titles are important. Use “Mr.” or “Ms.” with your last name, unless you are asked to be called by your first name. This shows respect for professional status. A smile is always friendly!

When greeting groups, shake hands with everyone, starting with the most senior. This is in line with the hierarchy that is valued in Croatian business culture.

In Croatia, punctuality reflects professionalism and reliability. Arrive on time for meetings to demonstrate commitment and respect. In case of delay, communicate your expected arrival time immediately to maintain trust.

Meetings are scheduled in advance, usually by email or phone. Confirm meetings a day or two in advance to emphasize their importance. Be sure to provide copies of all documents required for the meeting in the language of your business partner.

Translate one side of your business card into Croatian. This is not necessary, but it will show respect and impress your Croatian business partners.

Most Croatian businessmen are multilingual, and the main business languages, in addition to Croatian, are English, German and Italian (used mainly in the coastal areas of Istria). Nowadays, most young managers speak English fluently, which should eliminate the need for a translator. However, a foreign business partner should always ask before the meeting if an interpreter is needed to avoid any awkward situations. It is also advisable to learn a few greeting phrases in Croatian to simply lighten the mood at the beginning of the meeting.

Croats value a structured approach to meetings. Start with an overview of the agenda, keep the discussions direct, but allow for personal interaction to strengthen the relationship. End with a summary of decisions and next steps for clarity.

Efficiency is important, but be flexible. Meetings can be extended if the discussions are productive. Balancing punctuality with a willingness to engage in deeper dialogue leads to successful results in Croatia.

Business Dress Code

The dress code in Croatia is formal. Croatian business people wear suits to the office and to business meetings. Men wear suits with a jacket and tie, while women generally have a wider range of options.

Women's business attire is formal and should not be too revealing. In any case, dressing well is a sign of respect, demonstrating your attitude to business and attention to detail.

How to Conduct a Business Meeting

If a Croatian company hosts a meeting, you should expect a slight deviation from the agreed agenda. After all the pleasantries, the meeting begins with small talk (such as introductions), Croatians are very demonstrative in conversation, so they will not feel intimidated if you are demonstrative too. Do not be surprised if your meeting does not follow a written agenda, because they sometimes allow the discussion to go in other directions.

Depending on the length of the meeting, you may be offered refreshments in the office or a business lunch at a nearby restaurant; and if the meeting lasts all day, you may be invited to dinner afterwards.

If the first meeting is successful, it will usually establish a series of actions to be taken or a period of time to elapse before the next meeting. However, once agreement has been reached, a schedule of remaining activities should be finalized, tasks should be formulated, deadlines should be set, and dates and locations for future meetings should be agreed upon.

Giving Gifts

Small gifts, such as a book or a souvenir representing the country you are visiting, are acceptable. Expensive gifts are not recommended, and most companies have a ceiling on the value of a gift that can be accepted. Most business people do not expect gifts to be given at the first meeting.

Business Lunches

Business lunches are used not only to discuss business matters, but also as an opportunity to relax, socialize and get to know partners.
The host of the business meeting is responsible for choosing the restaurant, making reservations and paying at the end of the meal. An invitation to lunch is usually given during the initial meeting, while a meeting to finalize the details of a business deal is usually held in a more formal setting at the company's office.
It is recommended to arrive on time. There are no strict rules for seating, but if there are only two people, you will most likely sit opposite each other.

Building Relationships

In Croatia, personal relationships are crucial for successful negotiations and business partnerships. They strengthen business interactions. Building such relationships is essential for success in this country.

Croats value trust and loyalty, which develop over time through personal connections. Socialize outside the boardroom by sharing coffee or food, which builds trust through personal stories and interests. Talking about family, sports, or local events is vital to building relationships.

Avoid discussing religion, war, or other former Yugoslav ethnic groups. These topics are taboo in Croatian business culture.

Strong personal connections can significantly impact the outcome of negotiations. Established trust leads to smoother negotiations and encourages cooperation.

Negotiating and Making Decisions

Negotiation is a vital aspect of successful business interactions. In Croatia, cultural influences shape negotiation practices, making understanding these dynamics critical to achieving favorable results.

Croatian negotiators tend to favor a more patient and measured approach. They may take the time to fully understand a proposal and ask detailed questions. This should not be misconstrued as a lack of interest; rather, it demonstrates their thoroughness and desire to reach a mutually beneficial agreement. This attention to detail reflects the value placed on getting things right the first time. Rushing the process can be seen as disrespectful or unprofessional. Be prepared to answer detailed questions and provide comprehensive information to support your proposals.

Croatian negotiators are comfortable bargaining and expect a degree of back-and-forth discussion. However, unlike some cultures that make extreme initial offers, Croatians typically start from a more reasonable starting point. Be prepared to make well-considered concessions, but do not give up too much too quickly. Patience and a willingness to find common ground are key.

Negotiations can be viewed as a collaborative effort to reach a mutually beneficial solution. Demonstrating a flexible approach promotes goodwill and strengthens business relationships.

Croatian business culture values hierarchy and consensus in decision-making. Senior managers typically make decisions, but seek input from multiple levels to ensure inclusive results.

Consensus is key, and managers often seek agreement to create a supportive environment. This ensures that decisions are strategic and sustainable.

When working with Croatian counterparts, be patient and open to discussion. Be understanding and align your proposals with the group’s goals to increase influence and achieve positive results.

Croatian communication tends to be moderately direct. People are willing to express their opinions and ideas, but they do so with a strong emphasis on politeness and diplomacy. This reflects the cultural value placed on respect and maintaining harmony within the group.

Interestingly, although Croatians can be direct, they often soften potentially negative feedback with indirect phrases. This can be confusing for those accustomed to a more direct approach. For example, instead of directly saying, "There are a few errors in your report," a Croatian colleague might use a phrase like, "Perhaps there are some solutions to improve the clarity of this report."

This indirectness stems in part from Croatia's collectivist culture, which values group cohesion. Direct criticism can be seen as undermining team harmony.

Avoid openly criticizing your Croatian colleagues. Croatians are very proud and easily offended, so make suggestions rather than complaints and avoid direct confrontation.

The Role of Non-Verbal Cues

Non-verbal communication plays an important role in Croatia. Understanding body language and facial expressions can provide valuable context for the words spoken. Here are some key points to remember:

• Eye Contact: Maintaining eye contact during a conversation demonstrates respect and attentiveness. However, prolonged eye contact can be perceived as aggressive.
• Body Language: Open postures and a relaxed demeanor indicate openness to communication. Crossed arms or averted eyes can indicate disagreement or discomfort.
• Nodding the Head: Unlike some cultures where nodding the head means agreement, in Croatia it can simply mean that you are listening. Pay attention to the overall tone of the conversation to understand the true message.

Holidays and Anniversaries That Affect Business Operations

Croatia is known for its rich cultural heritage, which is reflected in its colorful holidays. These holidays often result in the complete or partial closure of businesses, so it is vital for anyone doing business in the country to understand them.

National Public Holidays

Croatia observes a number of national holidays prescribed by law that result in the complete closure of businesses. These include:

• New Year's Day (1 January): a day of family gatherings and celebrations marking the start of a new year.
• Epiphany (6 January): a religious holiday commemorating the visit of the Magi to the baby Jesus.
• Easter Monday (voluntary closure): on the Monday after Easter Sunday, some businesses may decide to close, although this is not mandatory.
• Labour Day (1 May): all businesses are closed to celebrate workers' rights.
• Statehood Day (30 May): to mark the establishment of the Croatian Parliament, offices across the country will be closed on this day.
• Corpus Christi (House of God) Day: a Catholic holiday observed on the Thursday after Trinity Sunday. Some businesses may close, especially in predominantly Catholic areas.
• Victory Day and Thanksgiving to the Fatherland Day (August 5): To celebrate Croatia's victory in the War of Independence, all businesses are closed.
• Fight Against Fascism Day (August 11): To celebrate the fight against fascism during World War II, closures are held across the country.
• St. Stephen's Day (December 26): On the second day of Christmas, all businesses are closed.

These holidays provide Croatians with an opportunity to connect with family, religious traditions, and national identity. Respect for these cultural traditions promotes positive work relationships.

Regional Celebrations

In addition to national holidays, Croatia celebrates regional holidays specific to certain areas. These may include partial closures or changes in opening hours. Examples include:

• St. Blaise's Day (February 3): The patron saint of Dubrovnik is celebrated with a colorful festival, which may affect opening hours in the city.
• St. Mark's Day (April 25): The patron saint of Venice is a major holiday in Istria, which may result in restrictions on business hours in the region.
• Zagreb City Day (October 8): To commemorate the city's liberation, Zagreb may have adjusted opening hours.

To navigate regional differences and plan accordingly, it is recommended to check with local chambers of commerce or contact businesses directly in advance.