POSLOVNI ĐIR Ljiljana Subašić i Sanja Amižić

Guest Ljiljana Subašić i Sanja AmižićHosted by Bojana KoharevićMay 3, 2026

Ljiljana Subašić i Sanja Amižić

About this episode

What you'll hear in this conversation

The world of beauty, with its promise of transformation and self-care, often masks a tougher reality for those who build careers within it. For years, salons across Croatia have navigated shifting economic tides, from the immediate shock of a pandemic to the ongoing pressures of rising operational costs and a challenging regulatory landscape. Ljiljana Subašić, president of the Guild of Hairdressers, Cosmeticians, and Pedicurists in the Split Crafts and Trades Association, and Sanja Amižić, president of the Hairdressers' Section, stand at the forefront of this fight. They advocate for their craftspeople, pushing back against unfair public narratives and tirelessly negotiating for better conditions. This conversation peels back the polished veneer to reveal the unseen pressures on an industry often mistaken for pure luxury, but which provides essential services. You will walk away with a clearer understanding of the daily challenges faced by small business owners in a high-demand, high-cost sector, and the constant advocacy required to keep the lights on.

Insights from the conversation

What to take from this episode

A single hairdresser was publicly penalized for a nine-cent price adjustment after the euro conversion, sparking a wave of negative public perception against the entire industry. When an isolated incident becomes a national narrative, leaders must defend their entire sector from a disproportionate backlash.

Government subsidies for electricity, which helped mitigate cost increases of up to 300% for salons, are set to expire at the end of March. Relying on temporary government support leaves businesses vulnerable to sudden cost spikes, forcing constant, proactive advocacy for stable operating conditions.

Hair salons received notices of a 20-25% increase in material costs from suppliers on February 1st, a significant jump on top of all other expenses. When input costs rise sharply, but competitive pressure and public perception prevent equivalent price adjustments for services, businesses are squeezed into thinner margins.

Croatian salons operate with the highest VAT rate in the EU at 25%, while colleagues in Slovenia pay 9.5%, yet they maintain the lowest service prices across the continent. A high sales tax combined with low market prices creates a structural competitive disadvantage, forcing businesses to absorb costs that peers in other countries do not.

In most EU countries, hairdressing is classified as a personal hygiene service, whereas in Croatia, the VAT rate effectively treats it as a luxury. How a basic service is classified by the state directly impacts its affordability and the public's perception, making it harder for providers to compete.

A client from London once told Sanja Amižić that the cost of a full beauty treatment in Croatia, plus a return flight, was still less than the treatment alone in her home city. Unusually low domestic pricing, even with high VAT, can create an unintended arbitrage opportunity for foreign customers, highlighting severe underpricing within the local market.

While registered salons face scrutiny for minor infractions, a significant challenge comes from unregistered individuals working from home or in garages, who are difficult to monitor or penalize. Formal businesses are at a disadvantage when an unregulated "black market" operates freely, undermining fair competition and tax compliance.

The industry is pushing to increase the VAT threshold to 50,000 euros, arguing that rising prices mean small, single-person businesses hit the current threshold too quickly. Inflation can prematurely push small operators into a higher tax bracket, adding a substantial burden for those with limited input cost deductions.

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