This paper analyzes the possibilities and potentials of the island of Hvar for the use of EU funds for the protection and promotion of cultural heritage of the island of Hvar included in the UNESCO’s list of cultural heritage. Key theoretical concepts were conceptualized and an overview of the general characteristics of EU funds was adopted, as well as a presentation of the features of the island of Hvar and a more detailed description of cultural assets included in the UNESCO list of cultural heritage, unique to the area of Hvar. The capacities of local self-government on the island of Hvar are presented and established, which are an important factor in the implementation of projects, given that Hvar is analyzed as a case study. Scientific and professional papers, legal frameworks, strategic documents, as well as interviews were used in the research, which provided a better insight into important aspects related to this paper. Furthermore, two European Union projects that were possible to finance Hvar's cultural heritage included in the UNESCO list were analyzed, and this paper presented an analysis of one project implemented in the past financial period of the European Union. Also, the description of examples of good practice provided a comparison with a project from Croatia that used its opportunities in a good direction and allocated funds for further development of its area. The possibilities and potentials of Croatian cultural heritage in terms of withdrawing funds from EU funds are in principle great, but the key established limitations on the example of the island of Hvar are mostly related to the capacities of state and local government in writing and implementing EU projects.