LOKALNO JE GLOBALNO Sveta Nedelja, Davor Nađi

Guest Davor NađHosted by Lidija KiseljakMay 3, 2026

Davor Nađ

About this episode

What you'll hear in this conversation

Sveta Nedelja, a small Croatian city, has quietly become a beacon for entrepreneurs, consistently ranking among the best for business. Its deputy mayor, Davor Nađ, has been instrumental in shaping this environment, drawing on a career spent understanding the intricate workings of businesses from the inside. Before entering public service, Nađ was a consultant for Microsoft Dynamics AX, implementing complex solutions for large enterprises across various industries. This direct exposure to corporate operations and their challenges gave him a precise understanding of how policy impacts daily business life. The city's approach isn't about minor adjustments; it's about systematically removing obstacles, often by eliminating taxes and fees entirely rather than merely reducing them. The result is a municipality that is debt-free, leads in average income per capita, and continues to attract new investment even as it foregoes traditional revenue streams. This conversation offers a clear look at how a city can foster a thriving business ecosystem by rethinking its role not as a collector of taxes, but as a strategic enabler of growth.

Insights from the conversation

What to take from this episode

Before becoming deputy mayor, Davor Nađ worked as a consultant for Microsoft Dynamics AX, implementing business solutions for large companies across various industries. That direct exposure to corporate operations and their pain points showed him how deeply legislative changes affect businesses, giving him a grounded perspective on policy before he ever wrote one.

Sveta Nedelja didn't just reduce taxes; it eliminated them entirely, abolishing surtax, communal fees for hospitality, and communal contributions for most new investments except retail and logistics. The point isn't just financial relief, but administrative — when a tax is gone, businesses no longer have to track or account for it, freeing up more than just capital.

For residential construction, Sveta Nedelja slashed communal contributions by 80-90%, bringing them down to as little as zero, four, or eight kuna per cubic meter, far below the typical fifty to one hundred kuna seen in other Croatian cities. This move creates savings of tens of thousands for homes and millions for large production facilities, making the city a compelling choice for new development.

Businesses investing in Sveta Nedelja and exempt from communal contributions are also excused from communal fees during their first year of operation. This bundling of relief measures for new investors signals a clear intent to welcome new capital, making the total package more compelling than isolated incentives.

Despite abolishing several taxes and significantly reducing others, Sveta Nedelja's budget fill rate is projected to be only 1-2% lower than the previous year. This shows that substantial tax relief for businesses doesn't automatically mean a depleted city budget; the right reforms, introduced at the right time, can maintain fiscal stability.

Sveta Nedelja is debt-free, boasts a leading average income per capita, and has been recognized as a top city for its business environment. These outcomes suggest that a focus on reducing burdens for entrepreneurs can translate directly into broader economic health and a robust municipal treasury.

Nađ expressed concern over a proposed national measure to increase mandatory contributions for micro-entrepreneurs just starting their businesses, fearing it could lead to closures. This highlights how even seemingly minor policy shifts at a national level can disproportionately harm new ventures, especially those in their earliest stages.

While Rimac Automobili is the city's most globally recognized company, Nađ noted that Sveta Nedelja also hosts many *larger* enterprises, even if they are less popular. A city's economic health often rests not just on its most visible innovators, but on the quiet strength and scale of its established businesses.

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