By acquiring shares, you become a shareholder in one of Croatia’s foremost industrial groups and a recognised leader in power engineering and rail vehicle manufacturing. Whether you are investing from Croatia or abroad, the share acquisition process is transparent and governed by a clear regulatory framework. The overview below guides you through each stage of the process and explains the available shareholding arrangements, helping you identify the option best suited to your investor profile.

Three companies within KONČAR Group are listed on the Regulated Market of the Zagreb Stock Exchange (ZSE):

• KONČAR Inc. – ticker KOEI 
• Dalekovod, jsc – ticker DLKV 
• KONČAR – Distribution and Special Transformers Inc. for manufacturing – ordinary shares: KODT; preferred shares: KODT2 

The process outlined below applies to all the shares listed above, which are available for purchase on the Zagreb Stock Exchange to domestic and international investors alike.

Key trading requirement: Investors do not trade directly on the Zagreb Stock Exchange. All orders must be placed and executed through an authorised investment firm (broker) that is a member of the Exchange and operates under the supervision of the Croatian Financial Services Supervisory Agency (HANFA). Once acquired, the shares are recorded in a securities account maintained with the Central Depository & Clearing Company (CDCC).

Check the current list of investment firms that are members of the Exchange. 

For Croatian citizens and residents

1. Choose an authorised intermediary – select an investment firm (brokerage firm) or bank that is a member of the Zagreb Stock Exchange and provides brokerage services.
2. Open a brokerage account – provide the required identification documents and complete the standard account-opening documentation. If you wish to have the shares registered directly in your name, you will also require a securities account with the CDCC. Your intermediary will arrange for this account to be opened as part of the onboarding process.
3. Fund your brokerage account transfer the amount you wish to invest to your brokerage account. 
4. Place a buy order to purchase the selected shares (KOEI, DLKV, KODT or KODT2)
5. Completion of settlement transactions are settled on a T+2 basis – meaning that the acquired shares are credited to your securities account on the second business day following the trade date. Please note that the CDCC business-day calendar may differ from the generally observed business-day calendar. The CDCC defines a business day as any day not designated as a non-business day by a decision of its Management Board. Details of CDCC non-business days are available on its website.

For investors outside Croatia

Foreign investors generally choose between two shareholding arrangements:

A) Directly registered ownership – through a Croatian intermediary

Under this arrangement, you open an account with an authorised investment firm or bank that is a member of the Zagreb Stock Exchange, while the shares you acquire are recorded directly in your name in the CDCC system. Direct registration generally requires foreign investors to obtain a Croatian Personal Identification Number (PIN). Your chosen intermediary can guide you through the application process and assist you in obtaining it. This arrangement is particularly well suited to retail investors and those who value a direct relationship with a local market intermediary.

B) International custody – omnibus custody account

Institutional and other non-resident investors typically access the Croatian market through their existing bank or global custodian, including custodians with access to international central securities depositories (ICSDs). Under this structure, the investor’s global custodian appoints or works with a local custodian in Croatia, which holds the shares through an omnibus custody account. Settlement may consequently be affected through a link with an ICSD, removing the need for the investor to open an individual securities account in Croatia. Investors wishing to use this route should consult their custodian and executing broker, as an appropriate local custody arrangement must first be established in Croatia. Where shares are held through an omnibus custody account that is not maintained in the investor’s name, no Croatian Personal Identification Number (PIN) is required. The custodian nevertheless remains responsible for maintaining accurate records of the persons on whose behalf the financial instruments are held and for making this information available to the competent authorities upon request. A PIN is likewise not required for withholding tax purposes. Instead, the investor’s non-resident status and jurisdiction of tax residence must be established. This has removed a common administrative barrier previously faced by foreign institutional investors.

Liquidity considerations for larger orders: Croatia is classified by MSCI as a frontier market. Liquidity available for larger orders may therefore be more limited, and substantial positions are often acquired or disposed of through bilaterally negotiated block transactions. For transactions of this scale, engaging an experienced local intermediary can facilitate access to available market liquidity.

Frequently asked questions 

As a foreign investor, do I need a Croatian PIN to purchase shares?

This depends on how your investment is held. A PIN is generally required if you invest directly through a Croatian intermediary and the shares are registered in your name. It is not generally required where the shares are held through an omnibus custody account. According to the supplementary opinion issued by the Croatian Ministry of Finance, Tax Administration (CLASS: 417-01/26-01/28, REG. NO.: 513-07-21-01-26-2) on 1 April 2026, foreign investors investing through omnibus custody accounts that are not registered in the investor's name and for which registration in official records is not required are not required to obtain a Croatian Personal Identification Number (OIB). In such cases, the custodian is required to maintain records of the beneficial owners on whose behalf the financial instruments are held and to make such information available to the competent authorities upon request.

Can I purchase shares through a non-Croatian broker?

This depends on whether the broker provides access to the Zagreb Stock Exchange. Many international brokers either do not offer access to Croatian equities or provide access on a limited basis. In practice, the most reliable route to acquiring shares in KONČAR Group companies is through a member of the Zagreb Stock Exchange or an international custodian with established access to the Croatian market.

How are shares settled when investing through an international custodian?

When investing through a global custodian, the shares are held through a local custodian in Croatia. Settlement may be affected through a link with an international central securities depository (ICSD), rather than exclusively through the domestic settlement infrastructure. This arrangement provides operationally efficient access to the Croatian market for foreign institutional investors already using international custody networks.

How are dividends taxed?

Dividends paid on Croatian shares are generally subject to Croatian tax withheld at source, meaning that shareholders receive the net dividend after deduction of the applicable tax. The standard domestic rate is 12% for individual investors. Dividends paid to non-resident investors depend on the investor’s legal status and country of tax residence, a reduced rate or exemption may be available under an applicable double taxation treaty or other relevant tax rules.

Foreign investors do not need to obtain a Croatian PIN solely for withholding tax purposes. The relevant factors are the investor’s non-resident status and tax residence, based on which any withholding tax liability and the applicable rate are determined.

Tax treatment ultimately depends on each investor’s individual circumstances. Investors should therefore seek advice from a qualified tax adviser before making an investment decision.

Where are my shares held?

All shareholdings are recorded within the system operated by the Central Depository & Clearing Company (CDCC), Croatia’s central securities depository. Depending on the selected holding arrangement, the shares are either registered directly in your name or held through a custodian.

This content is provided for information purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. 

Before making an investment decision, investors should independently verify the current procedures and requirements governing the acquisition, holding and disposal of shares.