Tax system

Tax treatment for residents and non-residents is equalized, and when taxing non-residents, the concluded agreements on avoidance of double taxation, which Croatia has signed with over 60 countries, are also taken into account.

Basic forms of taxes in the tax system of the Republic of Croatia:

Type of tax Tax rate
Corporate Income Tax  (Profit Tax)

  • 10% for revenues up to HRK 7,500,000.00 generated in the tax period or
  • 18% for the revenues generated in the tax period are equal to or greater than HRK 7,500,000.01.
10% and 18%
Income tax rate on withholding tax:

  • 15% in general
  • 10% for dividends and profit shares and for performances by foreign performers
  • 20% on all services and all types of fees taxable when paid to persons who have their registered office, headquarters or supervision in the countries listed on the EU list of non-cooperative jurisdictions for tax purposes and to which the Republic of Croatia does not apply the double taxation avoidance contract.
10%

15%

20%

Income Tax and Surtax

 Income Tax rate is:

  • 20% for income to 360,000 HRK / 47,745.36 EUR per year (up to 30,000 HRK / 3,978.78 EUR per month)
  • 30% for income above 360,000 HRK / 47,745.36 EUR per year (above 30,000 HRK / 3,978.78 EUR per month)

1 EUR = 7.54 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:

  • Municipalities up to 10%
  • Cities below 30,000 inhabitants up to 12%
  • Cities over 30,000 inhabitants up to 15%
  • City of Zagreb up to 18%
20% and 30%
Value Added Tax (VAT)

 When calculating VAT, three rates are applied:

25% is general rate

Reduced VAT rate of 13% is applied for following goods and services:

  • Accommodation or accommodation services with breakfast, half board or full board in hotels or similar purposes, including holiday accommodation, rental of premises in camps or in places designated for camping and accommodation on nautical tourism vessels,
  • Newspapers and periodicals of a newspaper publisher having a media statute and newspapers and periodicals of publishers for which there is no obligation to adopt a media statute under a special regulation, other than those to which VAT rate of 5% applies, printed on paper that goes out periodically and other than those which overall or in part contain ads or are used for advertising and other than those consisting in whole or in part of video or music content,
  • Edible oils and fats, of plant and animal origin,
  • Car seats for children and baby food and processed cereal-based foods for infants and young children,
  • Water delivery, other than water placed on the market in bottles or in other packaging, in terms of public water supply and public drainage according to a special regulation,
  • Tickets for concerts,
  • Supply of electricity to other supplier or end-user, including the fees related to a delivery,
  • Public service of collecting of mixed municipal waste, biodegradable municipal waste and separate collection of waste according to a special regulation,
  • Urns and coffins,
  • Seedlings and seeds,
  • Fertilizers and pesticides and other agrochemicals,
  • Animal feed, other than pet food.

Reduced VAT rate of 5% is applied for following goods and services:

  • All types of bread,
  • All types of milk (cows, sheep, goats), put on the market under the same name in liquid form, fresh, pasteurized, homogenized, condensed (except sour milk, yogurt, kefir, chocolate milk and other dairy products), substitutes for breast milk,
  • Books of professional, scientific, artistic, cultural and educational content, textbooks for pedagogical education, primary, high school and higher education, in all physical forms, other than those which contain or serve advertising in whole or in part and other than those consisting in whole or in part of video or music content,
  • Medicines sold on a prescription and having the approval of a competent body for medicines and medical products,
  • Medical equipment, aids and other devices used to relieve the disability treatment exclusively for the personal use of the disabled prescribed by the Ordinance on Orthopedic and Other Aids of the Croatian Institute for Health Insurance,
  • Cinema tickets,
  • Newspaper of a newspaper publisher who has media statue, and is printed on paper and issued daily, other than those containing, overall or in major part ads or advertising,
  • Scientific journals.
25%
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.

3%

For more information, please contact the Croatian Ministry of Finance:

Ministry of Finance – Tax Administration
Boškovićeva 5
10 000 Zagreb
Telefon: 01 4809 000

mfin.gov.hr