From January 1, 2023, the euro will become the official currency of the Republic of Croatia and then the current currency of the kuna will cease to exist. This means that in all documents (including invoices) and all legal instruments issued, drawn up, and issued after the day of the euro introduction, the amounts must be stated in euros.

On 20 May 2022, the Act on the Euro Introduction as the Official Currency in the Republic of Croatia was published. The law regulates the rules for the euro introduction as the official currency, the rules for converting, supplying, and exchanging cash from kuna to euro, dual circulation, double reporting, application of the principle of continuity of legal instruments, budgets, financial plans, business books, financial statements, and taxes.

The Croatian National Bank, instead of publishing the exchange rate of the kuna against other currencies, will begin to publish the exchange rate list for the euro.

In protecting consumers in this situation, it is important to emphasize that it is forbidden for businesses, credit institutions, credit unions, payment institutions, electronic money institutions, and financial service providers to increase the price of goods or services without justification.

The general rule for recalculation and rounding of prices

Price recalculation and rounding are the items of concern to Croatian citizens and visitors. Namely, the full numerical amount of the fixed conversion rate (1 EUR is 7.53450 HRK) will be applied when converting the kuna into euros.

The rounding of the amount will be done to two decimal places. If the third decimal is less than 5 then the second decimal remains unchanged, and if the third decimal is equal to or greater than 5 then the second decimal is increased by the number.

Double pricing

The period of double reporting of prices of goods and services lasts from September 5, 2022, to December 31, 2023. During this period, the prices are expressed in euros and kunas as well as the fixed conversion rate.

Dual currency circulation and exceptions

The dual circulation of currencies, ie the simultaneous use of the kuna and the euro in cash transactions, lasts for 14 days from the date of the euro introduction. Consumers can pay in cash in kunas and euros these days. During this period, the payee is obliged to return the rest of the money in euros to the consumer who paid in cash in HRK.

Exceptions to dual circulation are slot machines, amusement machines, and self-service devices for the sale of goods and services that can use ready-made new ones in kunas or euros.

It is important to note that ATMs and other self-service devices in the banking business have been paying out almost all money in euros since the introduction of the euro.

After these 14 days, the euro becomes the only legal tender.

Exchange of kuna for euros

At the earliest one month before the day of the euro introduction, banks will start supplying consumers and businesses, housing savings banks, credit unions, payment institutions, electronic money institutions, and the provision of financial services.

It will be possible to exchange cash from kuna for euros:

• Within 12 months from the date of introduction of the euro,
• In banks, FINA and Croatian Post d.d. no charge,
• Up to 100 kuna banknotes and up to 100 kuna coins per transaction,
• Exchange of kuna cash with a deposit on a euro transaction account.

If someone wants to exchange more than 100 banknotes and 100 coins in one transaction, then the bank can charge a fee.

What will happen to legal acts created before the euro?

The validity of existing contracts and other legal instruments, which specify the national currency, must not be affected by the euro. This applies to, for example, administrative acts, court decisions, contracts, payment instruments with legal effect such as enforcement orders, securities, payment security instruments, and documents issued to secure a claim.

The euro introduction does not entitle either party to unilaterally terminate a valid contract or change certain contractual provisions. Contracted amounts in HRK will be considered amounts in euros with the application of a fixed conversion rate and accordance with the rules for conversion and rounding.