Croatian MPs on Friday approved a law that paves the way for the introduction of the euro currency next year.
The country is due to replace the Croatian kuna with the euro on 1 January 2023.
MPs voted 117-13 in favour of legislation to bring in the euro. One lawmaker abstained in the 151-member parliament.
Croatia, which joined the European Union in 2013, remains among the weaker economies of the bloc following the war in 1992-95.
Right-wing parties in the Croatian parliament were opposed to the introduction of the euro, saying it would increase poverty and put pressure on citizens.
Both currencies are set to be in parallel use in the months after the formal start of the euro application.
Croatia’s economy is dependent on tourism revenue during the summer months. The country draws hundreds of thousands of European and other global tourists each season.