The paper analyzes the concept and characteristics of the concession. It has been established that throughout history the term has changed its meaning and that even today it has different meanings in different legal systems. However, concessions are always about the transfer of the execution of specific sovereign rights over the public good or the transfer of business from the state or local community to a private person. The basic law that regulates the area of concessions in Croatia is the Law on Concessions, the first version of which was adopted in 1990. From then until today, the Law has undergone numerous changes. This is not the only law that regulates the area of concessions, but the regulations that regulate this area can be divided into as many as six groups. There are the following types of concessions in Croatia: concessions for the economic use of public or other property, concessions for works and concessions for services. Within these groups, concessions can be issued for a number of individual activities. The concession award process is complex. First of all, it is necessary to carry out preparatory actions: appointment of an expert commission for concession, preparation of a feasibility study for granting a concession or analysis of granting a concession, assessment of the value of a concession and preparation of tender documentation. This is followed by the issuance of a notice of intent to grant a concession and the collection of bids and their evaluation. It was determined that there are two criteria according to which the most favorable bid can be selected: the criterion of the most economically favorable bid and the criterion of the highest offered concession fee. After the most favorable offer is selected, the decision on granting a concession follows, and then the conclusion of a concession contract in which the rights and obligations of the contracting parties are stated.