The world is globalizing again. The institute of free zones, although it exist from ancient Greece, has developed in the last half century as the starter of economic development and growth, as well as the place for attracting domestic and direct foreign investment, and the development of the new technologies. Free zones are also used to develop production and increase exports, and significantly reduce unemployment and stimulate development. Republic of Croatia had also opened the door to these economic trends and by drafting the law started to create conditions for the establishment of free zones. This graduate thesis is divided into three sections. In the first section the concept and definition of the free zones is explored and free zones are researched in the world, both in developed countries (US, EU), developing countries (Taiwan, Panama, China) and transition country (Serbia). In the second section the specifics of historical periods of development of free zones in Croatia is covered as well as the analysis of operations of free zones in the last five years. In the third section Varaždin Free Zone is explored as the most developed free zones in Croatia, but also the biggest greenfield investment in this part of the Croatia as well as the impact of the Varaždin Free Zone on the overall development of the economy of Varaždin County.