The draft amendments were sent by the Croatian government to parliament on Thursday.
The current provisions of that law envisage the restitution of property for foreigners only if so envisaged by inter-state agreements, which has so far been interpreted differently in practice.
According to the new amendments, the requests for property restitution can be submitted by foreigners who are former owners of the property.
So far, 4,211 requests of this kind have been lodged, according to figures released by the Croatian Justice Ministry.
According to some estimates, the government should ensure about HRK 750 million for that purpose. Of that amount, 145 million would be provided in cash and 607 million will be secured in the form of Croatia's bonds.
The ministry has said that it cannot be predicted how many new requests will be submitted in line with the new amendments.
The compensation for the confiscated property can be conducted under three models: paying in kind, giving substitute property and, if that is impossible, through shares or bonds.
The payment of compensation will start as of 2015 and will be conducted in 20 years.
The condition of reciprocity will be respected for citizens of countries that carried out confiscation and nationalisation on their territory, for instance former Czechoslovakia or Hungary, Romania and the former Soviet Union.