ZAGRAB, Croatia—Legislation has been passed in this country that makes free financial accounts available to certain citizens.

Backers of the legislation say they are seeking to reduce the financial burden of “unnecessary banking fees,” particularly for vulnerable groups such as pensioners, carers, students, and recipients of welfare or disability benefits.

After months of consultations and revisions, the Croatian Government has submitted the final proposal of the Law on Fee Comparability, Account Switching, and Access to a Basic Payment Account to Parliament, according to CroatiaWeek.

Under the new law, proponents say citizens will have improved access to affordable or free banking services, including account opening and maintenance, use of internet or mobile banking, cash deposits and withdrawals, receiving payments in euros, and using debit cards.

Two Main Pathways

“There are two main pathways to free banking: opening a basic account or agreeing to a free service package tied to a current account receiving regular income (salary, pension, scholarship, etc.),” Croatia Week reported. “A basic account functions similarly to a standard current account but comes with some limitations. It does not allow overdrafts, and the bank decides whether the client can use internet or mobile banking – not both.”

Customers cannot deposit foreign currency, receive credit cards, or open additional current or giro accounts at other banks, the report added.

According to government data, while some banks already offer basic accounts for free, others charge modest annual fees, especially for sensitive groups, often just €1.56, the report said. 

If no income is received for three consecutive months, banks may resume charging fees, but must give 15 days’ notice.

ATM Access ReformIn addition, a national ATM network is also planned by 2027, which will allow citizens to withdraw cash from any bank’s ATM without fees. Until then, users of free service packages will be entitled to two free withdrawals per month at other banks’ ATMs, CroatiaWeek reported.