Tax treatment of residents and non residents is equal. Taxation of non residents is conducted respecting double taxation avoidance contracts which Croatia has signed with over 60 countries.
Basic tax types in Croatian taxation system:
|Corporate Income Tax (Profit Tax)
Tax rate is 12% if a company generated revenues up to 7.500.000,00 HRK in the tax period, or 18% if the revenues in the tax period were higher than 7.500.000,01 HRK.
|12% and 18%|
|Income tax rate on withholding tax:
|Income Tax and Surtax
Income Tax rate is:
(up to 30,000 HRK / 4,048.58 EUR per month)
(above 30,000 HRK / 4,048.58 EUR per month)
1 EUR = 7.41 HRK
In the addition to income tax, the taxpayer also pays surtax on income tax, stipulated by municipalities and cities. The basis for the surtax calculation is the amount of income tax. The surtax rates range (as shown below) from 0% to 18%, with the highest rate applied only in Zagreb (18%).
Surtax Rates Range:
|24% and 36%|
|Value Added Tax (VAT)
When calculating VAT, three rates are applied:
A) All types of bread,
fresh, pasteurized, homogenized, condensed (except sour milk, yogurt, kefir, chocolate milk and other dairy products), substitutes for breast milk,
pedagogical education, primary, high school and higher education, in all physical forms,
and medical products,
for the personal use of the disabled prescribed by the Ordinance on Orthopedic and Other
Aids of the Croatian Institute for Health Insurance,
issued daily, other than those containing, overall or in major part ads or advertising,
|Real Estate Transfer Tax
Real estate Transfer Tax rate is 3% and is paid by the buyer.
The tax base is the market value of the property at the time of the tax liability. The market value of a property is the price of a real estate that is achieved or can be achieved on the market at the moment of the tax liability. Object of taxation is a real estate transaction. The real estate transfer is not considered to be the acquisition of real estate for which the value added tax (VAT) is payable.
By the accession of the Republic of Croatia to the European Union, the area of the Republic of Croatia became a part of a single customs territory of the Union. The entry into a single customs territory of the EU means that, as of July 1, 2013, all customs control over entry of goods or trade between Croatia and the other Member States is abolished. Trade between domestic goods between persons in different Member States is not considered as imports and is not a subject to customs procedures and supervision.
The subjects of customs control are the goods brought from countries that are not EU members and which are subjects to customs supervision from the time of its entry. These goods require customs-approved treatment or use. Implementation of the new Customs Code, according to the EU Regulation 952/2013 started on 1 May 2016. Given that the application of the provisions of the Customs Code requires the development of new applications, or refinement of existing applications, Commission Implementing Decision of the Work Programme for the Union Customs Code of April 29, 2014 adopted the program that contains a list of electronic systems that need necessary transitional period that may last till December 31, 2020.
Please note that the information on Croatian Tax System is updated according to a major tax reform that took effect since January 1st 2019.
For more information, please contact the Croatian Ministry of Finance:
Ministry of Finance
HR 10 000 Zagreb
P: +385 1 4591 333