The capital rebate is a write-off of part of the principal of loans from HBOR (Croatian Bank for Reconstruction and Development), which turns up to 50% of the total disbursed loan into grants (non-repayable funding). Unlike an interest subsidy, it applies to the principal, which is simply not repaid. The mechanism is available in three HBOR programmes implemented as financial instruments of the European Regional Development Fund: Loans for Production Modernisation (Krediti za modernizaciju proizvodnje), Sustainable Tourism Loans (Krediti za održivi turizam) and Energy Efficiency Loans for Businesses (Krediti za energetsku učinkovitost poduzetnika). The write-off is not automatic. It is obtained only by proving predefined criteria after the investment is completed, and the write-off percentage depends on how many criteria are met. The key consequence for the entrepreneur is that the rebate criteria must be built into the project before the loan application is submitted, because as a rule they cannot be added later.
UPDATE (14 July 2026): HBOR loans for entrepreneurs 2026: all programmes, conditions and documentation
UPDATE (6 May 2026): HBOR loan for production modernisation: Omnia Solutions secured a 50% principal write-off for a client
What the capital rebate is and how it works
In the three programmes listed, HBOR does not lend from a single source. The loan is approved in a 50:50 ratio, from European Regional Development Fund (ERDF) funds and from HBOR funds, or from commercial bank funds in the case of the Energy Efficiency Loans.
On the part of the principal from ERDF funds, the interest rate is 0.00% per year, fixed. On the part from HBOR or bank funds, a fixed interest rate applies, set according to the risk assessment of the individual project. The effective cost of financing is thus roughly half the market cost, even before any write-off.
The capital rebate is the next layer. After the investment is completed and the fulfilment of the criteria is proven, HBOR writes off part of the principal, specifically from the part of the loan financed with ERDF funds. In legal terms, the write-off is granted as State aid in the form of grants, and it can amount to at most 50% of the total disbursed principal.
Since the ERDF part makes up exactly half of the loan, the maximum rebate of 50% means that the entire ERDF part of the loan is written off. In that case, the entrepreneur repays only the part financed with HBOR or bank funds.
What it looks like in figures
An example for Loans for Production Modernisation.
| Item | Amount |
|---|---|
| Contracted and disbursed loan | EUR 1,000,000 |
| Part from ERDF funds (0.00% interest) | EUR 500,000 |
| Part from HBOR funds (fixed interest based on risk) | EUR 500,000 |
| Criteria met: three Industry 4.0 solutions (3 × 10%), two digital solutions (2 × 2%), result in an S3 area (5%) | 39% |
| Capital rebate (39% of EUR 1,000,000) | EUR 390,000 |
| Remaining principal to repay | EUR 610,000 |
The entrepreneur has thus obtained EUR 390,000 in grants and pays no interest on the ERDF part of the loan that remains to be repaid. The economic effect equals a grant of almost 40% of the loan value, without a call for proposals and without scoring in competition with other applicants.
Three programmes with a capital rebate in 2026
| Programme | Beneficiaries | Loan amount | Rebate threshold | Maximum write-off | How the loan is provided |
|---|---|---|---|---|---|
| Loans for Production Modernisation | micro, small and medium-sized enterprises in manufacturing (section C, NKD 2025) | EUR 100,000 to 3,000,000 | no threshold | up to 50% | directly to HBOR, electronically only |
| Sustainable Tourism Loans | micro, small and medium-sized enterprises in tourism and hospitality | EUR 250,000 to 7,000,000 | loan above EUR 500,000 | up to 50% | directly to HBOR, online only |
| Energy Efficiency Loans for Businesses | manufacturing industry, commercial and service sector, no size limit | up to EUR 3,000,000 | no threshold | up to 50% | only through commercial banks |
In all three programmes, loans can be disbursed until 31 December 2029, and the criteria for the capital rebate can also be met after that date. Each beneficiary can contract only one loan per instrument. In all three programmes there is no fee for processing the loan application, for reserving funds or for the write-off itself.
Write-off criteria: what exactly earns points
This is the part that decides the amount of money, and in practice it receives the least attention.
Loans for Production Modernisation
The write-off intensity grows with the number and complexity of the solutions financed by the loan, through three groups of criteria:
- A. Smart factory management (Industry 4.0): 10% write-off for each individual solution, provided that the cost of the individual solution is at least 10% of the total loan principal. Eligible solutions include automation and robotisation of processes, management and control, the internet of things (IoT) and sensors, artificial intelligence and smart factory management systems.
- B. Digitalisation and digital transformation of business processes: 2% write-off for each individual digital solution, for example ERP, CRM, DMS, HRM, BPM, billing systems, digital archives and asset and fleet management systems.
- C. The result of the investment falls within a thematic area of the Smart Specialisation Strategy (S3): 5% write-off.
The total is capped at 50% of the total disbursed principal, and the individual maximums per criterion are defined in Annex 2 of the lending programme.
In practice, the structure of the criteria means that one robotised solution is worth as much as five business software systems introduced. If the goal is to maximise the rebate, the order of priorities in the investment almost always starts with group A.
Sustainable Tourism Loans
- Achieving a higher level of energy efficiency: write-off of 5% to 15%. This criterion is mandatory.
- Investment in an area with a lower level of tourism development according to the tourism development index (ITR): write-off of up to 30%.
- Classification of the facility into a type and/or category after the project is completed: write-off of up to 20%.
In this programme, the capital rebate applies only to loans above EUR 500,000. A project of EUR 480,000, however well prepared, is not entitled to a write-off.
Energy Efficiency Loans for Businesses
The write-off is tiered and amounts to 15%, 25%, 35% or 50%, depending on the percentage and the absolute amount of energy savings achieved and on whether equipment for using renewable energy sources is installed. The conditions differ by sector and company size. If the beneficiary meets the conditions only partially, a lower write-off percentage applies.
The entry threshold of the programme itself is already high, at least a 20% reduction in delivered energy consumption in production facilities, or at least 30% in the commercial and service sector. Savings are proven with a savings calculation prepared according to the prescribed methodology, together with a measurement and verification system.
Why the rebate is often lower than 50% in practice
The capital rebate is State aid. This means that, regardless of how many criteria the entrepreneur has met, it is limited by the maximum aid intensities and amounts set by the General Block Exemption Regulation (GBER) and the rules on de minimis aid.
The actual write-off amount depends on three variables:
- the size of the company (micro and small enterprises have higher permitted aid intensities than medium-sized ones),
- the region of the investment (permitted intensities differ between Croatian regions),
- the type of aid granted for the specific investment (regional aid, aid for energy efficiency, aid for renewable sources, de minimis aid).
An entrepreneur who calculated a 45% rebate in the documentation, but whose project permits an aid intensity of 30% because of the company size and the investment region, will obtain 30%. The permitted aid intensity is therefore calculated before the rebate is designed, not after. This is one of the most common errors in the documentation that reaches HBOR.
Capital rebate versus conventional grants
| Capital rebate | Conventional grants | |
|---|---|---|
| How it is awarded | continuous intake of applications until 31 December 2029 or until the funds are used up | call deadline, often a few weeks |
| Selection | objective criteria, no ranking against other applicants | scoring and ranking, limited allocation |
| When the money arrives | immediately, through the loan disbursement; the aid is realised through the write-off after implementation | usually after implementation, with pre-financing of the project |
| Condition | creditworthiness and collateral | passing the quality assessment |
| Risk | if the criteria are not met, the loan is repaid in full | if the project is not implemented, the aid is not paid out or is returned |
For a financially sound company with a clear investment plan, the capital rebate is, as a rule, a more certain instrument than a call for grants, because it does not depend on how many competing applications arrived in the same month. For a company without creditworthiness or collateral, it is not an alternative, because loan approval remains a precondition.
The rebate is planned before the application, not after
For Loans for Production Modernisation, the form Expected Criteria for the Capital Rebate is submitted with the loan application, together with the Digital Transformation Plan and the List of Planned Products and Solutions. These three documents, together with the cost breakdown and the investment study, form a set that must be fully consistent.
Three operational rules follow from this.
Solutions that bring a write-off must be in the cost breakdown from day one. A solution that is not financed by the loan is, as a rule, not included in the rebate calculation.
The value threshold must be met. For the Industry 4.0 criterion, the cost of each individual solution must reach at least 10% of the total loan principal. A solution cheaper than that does not bring a 10% write-off, however technically advanced it is.
Costs incurred before the investment notification are not eligible. Only costs incurred after the investment notification (najava ulaganja) is submitted to HBOR or, if no notification was submitted, after the written loan application is submitted are recognised as eligible costs. Equipment ordered before that drops out of the loan base, and therefore out of the rebate base.
How the rebate is obtained after implementation
The procedure after the investment is completed has three steps.
- Proof. Evidence of the solutions actually implemented is collected. For Loans for Production Modernisation, the key document is the statement or confirmation of a permanent court expert in electronics, electrical engineering, computer science and telecommunications, confirming that the Industry 4.0 solutions have actually been implemented. For Energy Efficiency Loans, the savings achieved are proven through the measurement and verification system.
- Request for approval of the capital rebate. It is submitted to HBOR on the prescribed form, with the related documentation.
- Write-off. HBOR approves the rebate and reduces the principal from the part financed with ERDF funds. The repayment schedule is adjusted, and no fee is charged for the write-off itself.
The criteria for the capital rebate can also be met after 31 December 2029, which means that the loan disbursement deadline does not limit the deadline for proving them.
The three most common mistakes
1. The rebate is calculated at the end. The entrepreneur first defines the investment and only then checks how much write-off can be obtained from it. The correct order is the reverse, and the criteria are built into the scope of the investment while the project is still on paper.
2. Ignoring the State aid intensity. A nominal 50% does not mean 50% if the company size and the investment region allow less.
3. Inconsistency between documents. The amount in the cost breakdown, in the investment tables, in the investment study and in the form of expected rebate criteria must be identical. A mismatch triggers a request for supplementary documents and extends processing by weeks, and in an unfavourable scenario it reduces the recognised rebate.
Frequently asked questions about the capital rebate
What is the capital rebate? The capital rebate is a write-off of part of the principal of an HBOR loan, which turns up to 50% of the total disbursed loan amount into grants. It is granted as State aid once predefined criteria are met, and the part of the principal financed with European Regional Development Fund funds is written off.
Which HBOR programmes offer a capital rebate? Loans for Production Modernisation, Sustainable Tourism Loans and Energy Efficiency Loans for Businesses.
Is the 50% write-off automatic? No. The write-off is obtained only by proving that the criteria set by the programme have been met, and the actual percentage depends on the number and type of criteria met and on the permitted State aid intensity for the specific beneficiary and investment region.
Is there a minimum loan amount for the rebate? For Sustainable Tourism Loans, the capital rebate applies only to loans above EUR 500,000. For Loans for Production Modernisation and Energy Efficiency Loans for Businesses, no such threshold is set.
When is the capital rebate paid out? The rebate is not paid out in cash. It is carried out as a write-off of part of the principal after the investment is completed and the fulfilment of the criteria is proven. The criteria can also be met after 31 December 2029.
What if the criteria are not met? The loan remains a loan and is repaid in full, according to the agreed repayment schedule and interest rates.
Who prepares the documentation for the capital rebate? The documentation is prepared by the entrepreneur or by a specialised consultant. HBOR does not take part in preparing the investment study, the business plan or the digital transformation plan. Omnia Solutions d.o.o. from Zagreb prepares complete documentation for HBOR loans with a capital rebate, including structuring the investment to maximise the principal write-off.
How Omnia Solutions structures the investment for the maximum rebate
Omnia Solutions d.o.o. is a consultancy based in Zagreb (Utinjska 3F/2, OIB 52948904178), specialising in the preparation and implementation of projects financed from national and EU sources and in investment advisory services. Omnia Solutions prepares investment studies, business plans and complete documentation for HBOR’s lending programmes with a capital rebate.
Work on a project with a capital rebate differs from the conventional preparation of loan documentation in that it starts before the scope of the investment is fixed.
- Calculation of the permitted aid intensity according to company size, investment region and type of aid. This is the upper limit that the rebate cannot exceed.
- Structuring the scope of the investment so that the write-off criteria are met within that limit, with a check of the value thresholds for each solution.
- Investment notification before any contracting with suppliers, which protects the eligibility of costs.
- Preparation of the investment study, the digital transformation plan and the form of expected rebate criteria, with full consistency of all amounts.
- Managing the procedure until the loan is disbursed and, after implementation, until the request for approval of the capital rebate and the final principal write-off.
Contact: info@omniasolutions.hr, +385 97 796 96 79
Guide: HBOR loans for entrepreneurs 2026
- HBOR loans for entrepreneurs 2026. All programmes, interest rates, principal write-off of up to 50%, repayment of up to 20 years and documentation.
- HBOR loan for production modernisation 2026. From EUR 100,000 to 3,000,000, half at 0% interest, and a write-off of up to 50% of the principal.
- HBOR loans: advice and application preparation. What you need for the application and how we work.
>> All guides for 2026 in one place
Note on the content
This article is informative and educational in nature. It does not constitute financial, legal or tax advice, nor an offer of credit or an obligation of any party. The conditions of HBOR’s lending programmes were checked on 6 May 2026 and are subject to change without prior notice. Only the full text of the applicable lending programme, together with the related annexes on the criteria for the capital rebate, published at www.hbor.hr, is authoritative. The decision on approving the loan and the capital rebate is made by HBOR or the commercial bank. Omnia Solutions d.o.o. is not affiliated with HBOR, and this text was neither prepared nor approved by HBOR. Omnia Solutions d.o.o. makes reasonable professional efforts to keep the published information accurate and up to date, but accepts no liability for any errors, omissions or subsequent changes to the conditions, or for decisions made on the basis of the content published here. To check the conditions that apply to a specific investment, contact us or contact HBOR directly.
