Arbitration in Croatia has developed into a credible dispute resolution mechanism, particularly for commercial disputes involving foreign parties. As a signatory to major international arbitration conventions, Croatia offers a legal framework broadly aligned with international standards, while retaining certain local particularities that practitioners should be aware of.
Legal Framework
Arbitration in Croatia is primarily governed by the Arbitration Act (an English translation is available here), which entered into force in 2001. It follows the structure and principles of the UNCITRAL Model Law on International Commercial Arbitration.[1] This means that many concepts, procedures, and protections familiar to international practitioners are also recognised in Croatian arbitration.
The Arbitration Act governs domestic arbitration, which is defined as “any arbitration located in the Republic of Croatia.”[2] It governs in particular:
- The validity and effects of arbitration agreements;[3]
- The composition and jurisdiction of arbitral tribunals;[4]
- The conduct of arbitral proceedings;[5]
- The setting aside of arbitral awards;[6]
- The recognition and enforcement of arbitral awards.[7]
Under the Arbitration Act, international arbitration is defined as an arbitration seated abroad and therefore falls outside the scope of the Act. Nevertheless, in disputes with an international element, the parties may agree to arbitration seated outside the territory of the Republic of Croatia, unless a lex specialis provides that such disputes may be resolved exclusively by Croatian courts.[8]
Croatian law adopts a pro-arbitration approach, recognising party autonomy and limiting court intervention to situations expressly provided for by law.[9] Parties are generally free to agree on the number of arbitrators, the procedure to follow, the applicable substantive law, and the language of the proceedings.[10]
Main Arbitration Institutions
The most prominent arbitration institution in Croatia is the Permanent Arbitration Court at the Croatian Chamber of Economy, often referred to simply as the Zagreb Arbitration Court.[11] It has a long tradition, dating from the 19th century, and operates under its own set of rules (Zagreb Rules), frequently updated to reflect international best practices and to ensure efficiency and flexibility.
The Permanent Arbitration Court at the Croatian Chamber of Economy is commonly used for commercial disputes involving Croatian companies and regional disputes in Central and Southeastern Europe.
Ad Hoc Arbitration
Since the enactment of the Arbitration Act, parties are also free to opt for ad hoc arbitration, frequently conducted under the UNCITRAL Arbitration Rules.[12] Croatian courts are generally supportive of ad hoc proceedings and will assist, where necessary, with tribunal appointments or interim measures.
Arbitrable Disputes
Under Croatian law, arbitration is generally permitted for disputes concerning rights over which parties may freely dispose.[13] This includes most commercial disputes, such as contractual disputes, construction and infrastructure disputes, or trade disputes.
Therefore, certain matters, including family law or criminal law disputes, remain non-arbitrable.[14]
Form of Arbitration Agreement
An arbitration agreement must be in writing, which includes electronic communications.[15] Furthermore, for arbitration agreements related to consumer contracts, additional rules apply. Any such agreement must be set out in a separate document signed by both parties. No other agreements may be included in that document, unless it has been executed before a notary public.[16]
Role of Croatian Courts in Arbitration
Croatian courts play a supportive, non-intrusive role in arbitration proceedings. Pursuant to Article 43 of the Arbitration Act, the Commercial Court in Zagreb is the competent court for matters falling within the subject-matter jurisdiction of the commercial courts, including:
- Decisions concerning the jurisdiction of the arbitral tribunal;[17]
- The deposit of the arbitral award;[18]
- Ruling on setting aside an award;[19]
- Application for recognition and a motion for enforcement.[20]
In all other matters, the competent court shall be the Zagreb County Court.[21]
Setting Aside Arbitral Awards
The Croatian Arbitration Act provides that a party may challenge an arbitral award only by filing an application for setting aside. With respect to the grounds for setting aside an award, the Arbitration Act distinguishes between grounds of nullity that the applicant must establish and grounds that the court must consider ex officio, even if the parties have not invoked them.[22]
The court shall set aside an arbitral award if a party proves that:
- The arbitration agreement was non-existent or invalid;
- A party lacked legal capacity or proper representation;
- A party was not duly notified of the proceedings or was otherwise denied the opportunity to present its case;
- The award addresses matters outside the scope of the arbitration agreement;
- The arbitral tribunal was improperly constituted, or the proceedings were conducted in breach of the applicable law or the parties’ agreement;
- An arbitral award is not reasoned or signed within the meaning of Article 30(3) and (5) of the Arbitration Act.[23]
Furthermore, the limited grounds considered ex officio include:
- That the subject matter of the dispute is not arbitrable under Croatian law;
- The arbitral award is contrary to the public policy of the Republic of Croatia.[24]
The Arbitration Act provides that an application to set aside an award, or a subsequent additional award, must be filed within three months of its receipt.[25] It should be noted that the court may also, where appropriate or at a party’s request, suspend its decision on setting aside the award to allow the arbitral tribunal to remedy the defect that would otherwise lead to annulment.[26]
Recognition and Enforcement of Foreign Arbitral Awards
For more than 30 years,[27] Croatia has been a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention).[28]
However, Croatia has made two reservations to only recognise and enforce awards (i) of another contracting State; and (ii) relating to “commercial” disputes.
A foreign arbitral award may be recognised and enforced in Croatia unless:
- The court finds that grounds for setting aside under the Arbitration Act exist;[29]
- The award is not yet binding on the parties;
- The award has been set aside or delayed in its entry into force.[30]
Investment Arbitration and Croatia
Croatia has been involved in a number of investment treaty arbitrations, five of which remain pending.[31] Among them is the long-running dispute between the Hungarian energy company MOL Group and the Republic of Croatia. As previously noted, this case exemplifies the complex dynamics of investment arbitration, intertwining allegations of corruption with the broader challenges of enforcing arbitral awards in politically sensitive contexts.
Conclusion
Arbitration in Croatia offers a solid legal framework aligned with international standards and supported by generally pro-arbitration courts. For businesses operating in Croatia or contracting with Croatian counterparties, a sound understanding of the local arbitration landscape is essential. When carefully designed, an arbitration strategy can provide both legal certainty and commercial flexibility.
[1] S. Lisac, International arbitration law and rules in Croatia (30 November 2022), available at: https://cms.law/en/int/expert-guides/cms-expert-guide-to-international-arbitration/croatia.
[2] Arbitration Act, Article 2(1)(2).
[3] Arbitration Act, Articles 6-8.
[4] Arbitration Act, Articles 9-16.
[5] Arbitration Act, Articles 17-26.
[6] Arbitration Act, Article 36.
[7] Arbitration Act, Articles 38-40, 47-49.
[8] Arbitration Act, Article 3(2).
[9] S. Lisac, International arbitration law and rules in Croatia (30 November 2022), available at: https://cms.law/en/int/expert-guides/cms-expert-guide-to-international-arbitration/croatia.
[10] Arbitration Act, Articles 9, 18, 21, and 27.
[11] Croatian Chamber of Economy, About the Court, available at: https://www.hgk.hr/stalno-arbitrazno-sudiste-pri-hgk/o-sudistu.
[12] Croatian Chamber of Economy, About the Court, available at: https://www.hgk.hr/stalno-arbitrazno-sudiste-pri-hgk/o-sudistu.
[13] Arbitration Act, Article 3(1).
[14] Z. Vukic, I. Sunko, E. Vukic, Croatia, in ICLG, International Arbitration 2025 (30 September 2025).
[15] Arbitration Act, Article 6(2).
[16] Arbitration Act, Article 6(6).
[17] Arbitration Act, Article 15(3).
[18] Arbitration Act, Article 46.
[19] Arbitration Act, Article 36.
[20] Arbitration Act, Articles 39-40.
[21] Arbitration Act, Article 43(1).
[22] Arbitration Act, Article 36(2).
[23] Arbitration Act, Article 36(2)(1).
[24] Arbitration Act, Article 36(2)(2).
[25] Arbitration Act, Article 36(3).
[26] Arbitration Act, Article 36(4).
[27] The Socialist Federal Republic of Yugoslavia acceded to the New York Convention on 26 February 1982, with the Convention entering into force for Yugoslavia on 27 May 1982. Following Croatia’s notification of succession dated 26 July 1993, the Convention has applied to Croatia with effect from 8 October 1991 and forms part of the Croatian legal system.
[28] https://www.newyorkconvention.org/contracting-states/contracting-states.
[29] See Arbitration Act, Article 36(2)(1).
[30] Arbitration Act, Article 40(1).