Litigation financing in Croatia: an innovative alternative in an evolving jurisdiction
Litigation financing by third parties (or third party funding) continues to gain ground in Europe as a tool to democratize access to justice, manage legal risks, and accelerate financial timelines. In Croatia, a country with a developing economy within the European Union and a legal system based on continental law, this model is beginning to position itself as a strategic solution for both local litigation and international disputes. Loopa enters this market to offer expertise, capital, and legal support to claims with merit and economic potential.
History of third party funding in Croatia
The practice of third party funding in Croatia is incipient. Unlike other European jurisdictions with more mature markets such as the United Kingdom, Germany, or the Netherlands, the model is not yet widespread or institutionalized in Croatia. However, there are clear signs of evolution: the country's progressive opening to international arbitration, its integration into the European Union, and the modernization of its judicial system have created the conditions for this type of financing to gain relevance in the coming years. In recent times, some local law firms and companies involved in international arbitrations have begun to explore external funding agreements. At the same time, the interest of global funders in Central and Eastern Europe—a region with high litigation rates and increasing legal costs—has put Croatia on the radar. In this context, Loopa positions itself as a bridge between international financial sophistication and the specific needs of the Croatian legal ecosystem.
Legal framework
The Croatian legal system is framed within the tradition of civil law, with a strong influence from German and Austrian jurisprudence. Although there is no specific law regulating third party funding, current legislation allows for its development within the general framework of autonomy of will and contracts between individuals. The assignment of litigious claims is valid under Croatian law, as long as they are not rights that are non-transferable or that violate public interest. This mechanism allows for structuring the financier's security in the form of participation in the outcome of the litigation. Additionally, although the Croatian legal system is traditionally conservative regarding contingent fees (quota litis), the practice is increasingly being debated, especially in international litigation. This enables the development of third party funding as a complementary model, in line with Croatian legal principles: legality, good faith, and contractual freedom. In this context, Loopa can operate transparently and legitimately, always respecting the independence of the lawyer and the rights of the client.
Arbitration Application: Croatia as a Strategic Jurisdiction
Although Croatia is not yet a top-tier arbitral center, its adherence to the New York Convention and the existence of institutions such as the Permanent Arbitration Court at the Croatian Chamber of Economy (PAC-CCE) make it a viable and recognized venue for the resolution of commercial disputes. In particular, Zagreb has become a meeting point for regional arbitrations, especially in commercial disputes involving parties from Central Europe and the Balkans. In this environment, third party funding can play a key role, allowing local or foreign companies with valid claims to access arbitration without assuming all the financial risk. Loopa is ready to support cases in this context, both in arbitrations administered by Croatian institutions and those based abroad but involving Croatian parties. We offer funding, merit analysis, and support structure so that parties can focus on resolving the substance of the conflict, without being limited by budgetary constraints.
Application in judicial disputes: transforming years of waiting into liquidity
As in many jurisdictions in the region, judicial proceedings in Croatia can be lengthy. Although the judicial system has improved in efficiency since joining the European Union in 2013, complex civil processes—especially those against the State or related to damages and losses—still take several years to reach a final resolution. In this context, litigation funding not only covers legal expenses but also enables the early monetization of the claim: a solution that turns a future right into present liquidity. This capability is particularly relevant for companies with assets tied up in litigation, as well as for individual plaintiffs who need immediate access to funds without waiting for the judicial outcome. Loopa offers this possibility in Croatia: we assess the merit of the case, structure a clear proposal, and provide the necessary capital so that clients can face the litigation with solvency, strategy, and peace of mind. The model does not require personal guarantees or refunds if the case is unsuccessful: we only charge if there is a win.
Conclusion: an emerging market with high potential
Croatia is at a key moment of legal, economic, and financial evolution. Its integration into the European Union, its geographic proximity to regional arbitration hubs, and the need for agile solutions to resolve legal disputes make it a jurisdiction with great potential for the development of third party funding. Loopa, with its international experience and flexible approach, presents itself as a strategic partner for lawyers, companies, and claimants in Croatia. We offer capital, support, and expertise to ensure that no meritorious case is left behind due to lack of resources. From civil litigation to international arbitration, we are ready to support the growth of litigation financing in the heart of the Balkans. Because transforming conflicts into opportunities is also possible in Croatia.
