Taxes in Croatia
A guide to the 2026 rules: residency, city-level income tax rates, contributions, corporate tax and dividends, value added tax, the lump-sum obrt and digital nomads, property, double tax treaties and filing deadlines.
Croatian income tax is progressive, and each city picks its own two rates: 23% and 33% in Zagreb, 20% and 30% in most municipalities. Investment income is taxed at a flat 12%, and companies pay 10% or 18% depending on turnover.
Croatia tax rates in 2026 at a glance
A quick cheat sheet for 2026; details and worked examples follow below. Amounts are in US dollars with euros in brackets; one euro is about $1.12.
| Tax | 2026 rate | Who pays and on what |
|---|---|---|
| Income tax, lower rate | 15-23%, default 20% | Salary, self-employment and other annual income up to $67,400 (€60,000) a year; the rate is chosen by the city or municipality |
| Income tax, higher rate | 25-33%, default 30% | The part of income above $67,400 (€60,000) a year, or $5,620 (€5,000) a month; Zagreb uses 23% and 33% |
| Employee pension contributions | 20% | Withheld from gross pay: 15% to the first pillar and 5% to the second; base capped at $13,500 (€11,958) a month |
| Health insurance | 16.5% | Paid by the employer on top of gross pay, no cap |
| Corporate income tax | 10% or 18% | 10% where annual revenue is up to $1.13 million (€1 million), 18% above that |
| Dividends, interest, capital gains | 12% | Individuals; gains on shares, funds and crypto held for more than 2 years are tax-free |
| Value added tax | 25%, 13%, 5% | Mandatory registration above $67,400 (€60,000) of annual turnover |
| Lump-sum obrt | 12% of a notional base | From $229 (€203.40) to $1,220 (€1,080) of tax a year on turnover up to $67,400 (€60,000), plus fixed contributions |
| Property tax | €0.60-8.00 per m² | Since 2025, on homes not used as a permanent residence or let on a long-term lease |
| Real estate transfer tax | 3% | The buyer, on market value; new builds sold with value added tax are exempt |
| Inheritance and gift tax | 4% | Cash, securities, movable assets; spouses and direct-line relatives are exempt |
| Sale of property within 2 years | 24% | On the gain, unless the property was the seller's own home |
The key feature: each city or municipality picks its own two income tax rates within a legal band, so the same salary is taxed differently in Zagreb and in Rijeka. The old local surtax (prirez) was abolished in 2024 in favour of local rates.
For investors Croatia is friendlier than it looks: dividends and interest are taxed at 12%, and gains are tax-free after two years of ownership. For a well-paid employee, the burden is heavy.
We will calculate online the tax on your income and show how to pay less legally.
Compare taxes in 146 countries: relocation taxes 2026
Who is a Croatian tax resident
A resident is taxed on worldwide income, a non-resident only on Croatian-source income.
| Test | How it works |
|---|---|
| Home (prebivalište) | The person owns a home in Croatia, or has one at their disposal, without interruption for at least 183 days in one or two calendar years. Actually living there is not required |
| Habitual abode (uobičajeno boravište) | The person is physically present in Croatia for at least 183 days in one or two calendar years |
| State service | Someone in Croatian state service and paid for it is a resident even with no home or presence in the country |
| Homes in two countries | Residency follows the place where the family lives; for single people, the country from which they usually commute to work or where they spend most time |
| Not resident anywhere else | If the other country does not treat the person as its resident, Croatia does |
The common trap is the first test: a one-year lease puts a home at your disposal for over 183 days, which on paper is enough even if you spend under half the year in Croatia. The count also straddles calendar years, so September to March gets you there too.
Days spent in Croatia before a job starts are also counted. For dual residents, the treaty tie-breakers decide: permanent home, centre of vital interests, habitual abode, nationality. We explain the logic of the 183-day rule in more depth in our article on tax residency in 2026.
Every taxpayer gets an OIB number, needed for a bank account or a property purchase. When leaving, notify the police and the tax office and file the TI questionnaire on change of residency, or the tax office may keep treating you as resident.
Croatia tax residency rules: how to become resident and count days
Croatia counts days over one or two calendar years, not one: 183 days of habitual stay that start in autumn and end in spring also make you resident. Short trips do not break the count. That is how Article 43 of the General Tax Act works.
The second ground is a home: owned or rented and at your disposal for 183 days or longer without a break. So a purchased flat needs a check even if the days are not reached. A resident pays progressive tax on worldwide income, a non-resident only on Croatian income.
Mistakes cost more: wintering in Split from October to April gives more than 183 days across two years, and Croatia taxes worldwide income. Murblz support removes these risks: we count days across the year boundary, check the home, obtain the residence certificate and apply the double tax treaty. We guarantee professional work and a transparent process, and in most cases a result on the first filing.
183-day calculator
Tax residency calculator for Croatia
Enter your travel dates: the calculator shows whether you are a tax resident of Croatia today and at year end, and how many days are left before the threshold.
Counting by dates needs JavaScript. Below are the same rules by country.
Personal income tax: two rates chosen by your city
Annual income (employment, pensions, self-employment) is taxed on a two-rate progressive scale. Final income (dividends, interest, capital gains, rent) is taxed at a flat 12% and stays out of the annual return.
The lower rate applies to taxable income up to $67,400 (€60,000) a year, or $5,620 (€5,000) a month on payroll, the higher rate to the excess. Local bands:
| Type of local unit | Lower rate | Higher rate |
|---|---|---|
| Municipality (općina) | 15-20% | 25-30% |
| Town (grad) | 15-21% | 25-31% |
| Large town or county seat | 15-22% | 25-32% |
| Zagreb | 15-23% | 25-33% |
| No local decision adopted | 20% | 30% |
The rate follows the taxpayer's place of residence, not the employer's address. Of 556 cities and municipalities, 489 use the default 20% and 30%. From 1 January 2026, 13 of them changed rates: Rijeka cut to 20% and 25%, Pula raised to 22% and 32%. Main cities, per the official 2026 table:
| City | Up to $67,400 (€60,000) a year | Above $67,400 (€60,000) a year |
|---|---|---|
| Zagreb | 23% | 33% |
| Split | 21.5% | 32% |
| Pula | 22% | 32% |
| Varaždin | 21% | 32% |
| Osijek, Zadar, Dubrovnik, Šibenik | 20% | 30% |
| Rijeka | 20% | 25% |
Allowances
The basic personal allowance is $674 (€600) a month, or $8,090 (€7,200) a year. Dependants add $337 (€300) a month for a dependent family member, $337 (€300) for the first child, $472 (€420) for the second and $674 (€600) for the third. Disability adds $203 (€180) a month, or $674 (€600) for 100% disability.
Up to and including age 25, tax on employment income in the lower bracket is fully waived; from 26 to 30, half is waived. Croatians and descendants of emigrants returning after two or more years abroad pay no tax on salary for five years. There is no special regime for incoming foreign specialists or expats like those in Portugal or Greece.
The tax year is the calendar year. Where an annual return is needed, it is due by the end of February; an employee with one employer and no foreign income usually does not need one.
Pension and health contributions: what you actually take home
The employee pays only pension contributions and the employer only health insurance.
| Contribution | Rate | Who pays | Base and limits |
|---|---|---|---|
| Pension insurance, first pillar | 15% | Employee, withheld from gross | Capped at $13,500 (€11,958) a month, $162,000 (€143,496) a year |
| Pension insurance, second pillar | 5% | Employee, withheld from gross | Same cap for salary |
| Health insurance | 16.5% | Employer, on top of gross | No cap |
The minimum gross wage in 2026 is $1,180 (€1,050) a month, up from $1,090 (€970) in 2025. Contribution bases run from $851 (€757.34) to $13,500 (€11,958) a month. For low earners the pension base is reduced: by €300 on pay up to €700, and by half of €1,300 minus salary on pay between €700.01 and €1,300. For a director working in their own company, the minimum gross salary in 2026 is $1,460 (€1,295.45), with a total cost to the company of $1,700 (€1,509.20).
Example: a salary in Zagreb
An employee over 30, with no dependants, living in Zagreb (rates of 23% and 33%).
| Step, euros | Salary 3,000 | Salary 8,000 |
|---|---|---|
| Gross salary | 3,000 | 8,000 |
| Pension contributions, 20% | 600 | 1,600 |
| Income after contributions | 2,400 | 6,400 |
| Personal allowance | 600 | 600 |
| Taxable base | 1,800 | 5,800 |
| Tax at 23% on the base up to 5,000 | 414 | 1,150 |
| Tax at 33% on the base above 5,000 | 0 | 264 |
| Net pay | 1,986 | 4,986 |
| Employer health insurance, 16.5% | 495 | 1,320 |
| Total cost to the employer | 3,495 | 9,320 |
| Net pay in US dollars | ~$2,300 | ~$5,600 |
On €3,000 the employee gives up €1,014, or 33.8% of gross, and the total wedge is €1,509, about 43% of total cost. On €8,000 the employee keeps 62% of gross. In Rijeka the tax on €3,000 would be €360 instead of €414.
Corporate tax and dividends
The rate depends on revenue, not on profit.
| Condition | Rate |
|---|---|
| Annual revenue up to $1.13 million (€1,000,000) | 10% |
| Annual revenue above $1.13 million (€1,000,000) | 18% |
| Groups with revenue of $843 million (€750 million) or more | 15% minimum tax under Pillar Two |
The return (form PD) is due within four months of the year end, with monthly advance payments during the year. From 2026 returns are electronic only, and the related-party loan interest rate for 2026 is 2.65%.
Dividends
Dividends paid by a company to an individual are taxed at 12%, withheld by the company itself. Dividends paid to foreign companies are subject to 10% withholding unless a double tax treaty gives a lower rate. For European Union parent companies that meet the conditions of the European Union Parent-Subsidiary Directive no tax is withheld.
Example: the owner of a d.o.o. takes out the profit
| Step, euros | Revenue up to 1 million | Revenue above 1 million |
|---|---|---|
| Profit before tax | 100,000 | 100,000 |
| Corporate tax | 10,000 (10%) | 18,000 (18%) |
| Net profit available for distribution | 90,000 | 82,000 |
| Dividend tax, 12% | 10,800 | 9,840 |
| Left for the owner | 79,200 | 72,160 |
| Combined burden | 20.8% | 27.8% |
| Left for the owner in US dollars | ~$89,000 | ~$81,000 |
If you are the director of your own company, you usually have to pay yourself at least the minimum director salary with contributions. Our company registration service can set up the company, and a business account in Croatia is best opened early, as banks vet non-residents slowly. If you stay tax resident in another country, its controlled foreign company rules may apply to the company; see controlled foreign company filings.
VAT in Croatia: 25%, 13%, 5% and a $68,000 threshold
The standard rate of 25% is one of the highest in the European Union.
| Rate | What it applies to |
|---|---|
| 25% | All goods and services without a reduced rate |
| 13% | Accommodation, food preparation and catering, water supply, electricity, waste collection, child car seats |
| 5% | Bread, dairy products, fresh meat, fish, vegetables, fruit and eggs, edible oils, baby food, books, medicines and medical devices, cinema and concert tickets; temporarily (until 31 March 2027, under the March 2026 amendment to the Value Added Tax Act) also natural gas, district heating and firewood |
| 0% | Supply and installation of solar panels on private residential buildings |
Since 1 January 2025 the mandatory value added tax registration threshold has been $67,400 (€60,000) of annual turnover, up from $45,000 (€40,000). Voluntary registration is possible. The European Union small business scheme also lets a Croatian business use the exemption in other member states if its European Union turnover is no more than $113,000 (€100,000).
From 2026, value added tax returns are due by the last day of the following month instead of the 20th.
Fiscalisation 2.0 and e-invoicing
From 1 January 2026, businesses registered for value added tax must issue and accept electronic invoices for domestic business-to-business supplies, and from 2027 the obligation extends to businesses outside value added tax, lump-sum obrt owners included. Our accounting and audit service can set this up from day one.
A lump-sum obrt owner selling services to European Union businesses still needs a value added tax ID (form P-PDV) and must apply the reverse charge.
Lump-sum obrt, freelancing and the digital nomad permit
The self-employed and small businesses have three main routes, plus a special status for remote workers.
| Structure | Tax | Contributions | Best for |
|---|---|---|---|
| Lump-sum obrt (paušalni obrt) | 12% of a notional base set by turnover class | Fixed $327 (€290.98) a month | Turnover up to $67,400 (€60,000) a year, simple services, minimal bookkeeping |
| Obrt with full income and expense records | Progressive income tax at your city's rates | Pension 20% and health 16.5% | Turnover above $67,400 (€60,000) or high costs |
| Company (d.o.o.) | 10% or 18%, plus 12% on dividends | On the director's salary | A growing business, partners, outside investors |
| Digital nomad | Income from a foreign employer or business is exempt | None in Croatia | Remote work for foreign clients, up to 18 months |
Lump-sum obrt
An obrt is a sole proprietorship. Tax is charged at a nationwide 12% on a notional base set by turnover class, not on actual profit. The PO-SD report is due by 15 January, tax is paid quarterly and contributions monthly by the 15th.
| Class | Annual turnover, euros | Tax base, euros | Annual tax, euros | Quarterly tax, euros |
|---|---|---|---|---|
| 1 | up to 11,300 | 1,695 | 203.40 | 50.85 |
| 2 | 11,300.01-15,300 | 2,295 | 275.40 | 68.85 |
| 3 | 15,300.01-19,900 | 2,985 | 358.20 | 89.55 |
| 4 | 19,900.01-30,600 | 4,590 | 550.80 | 137.70 |
| 5 | 30,600.01-40,000 | 6,000 | 720.00 | 180.00 |
| 6 | 40,000.01-50,000 | 7,500 | 900.00 | 225.00 |
| 7 | 50,000.01-60,000 | 9,000 | 1,080.00 | 270.00 |
Where the obrt is your main activity, 2026 contributions are $180 (€159.44) pension and $148 (€131.54) health on a $896 (€797.20) base, $327 (€290.98) a month. Above $67,400 (€60,000) of turnover the regime is lost and value added tax registration follows.
Example. Turnover of €45,000 a year falls into class 6: tax of €900, contributions of 290.98 x 12 = €3,491.76, €4,391.76 in total, about $4,940, or about 9.8% of turnover. One of the lowest burdens in the European Union, but capped. A national from outside the European Union needs a residence status that allows self-employment, an immigration rather than tax question.
The digital nomad permit
Nationals from outside the European Union working remotely for an employer or own business not registered in Croatia can get digital nomad stay, and that income is exempt from Croatian income tax. In 2026 applicants must show income of at least $4,070 (€3,622.50) a month, 2.5 times last year's average net wage, or savings of $48,900 (€43,470) for 12 months. The permit is issued for up to 18 months, and a new application can only be made 6 months after the previous stay ends. More detail is on our Croatia digital nomad visa page, and a cross-country comparison is in our piece on digital nomad visas in 2026.
The exemption is narrow: no work for Croatian employers, and if the 183-day rule makes you resident, dividends, interest, rent and gains are taxed normally.
Property, inheritance, capital gains and crypto
Property and investment taxes in one table, with details below.
| Transaction | Tax | Who pays and when |
|---|---|---|
| Buying a resale property | 3% of market value | The buyer; spouses and direct-line relatives are exempt |
| Buying a new build from a developer | 25% value added tax included in the price | No real estate transfer tax |
| Owning a home not used as a permanent residence | €0.60-8.00 per m² a year | The owner on 31 March; the rate is set by the city |
| Long-term letting | 12% on rent less a 30% notional expense deduction | The landlord; an effective 8.4% of rent |
| Tourist letting under the flat-rate regime | A fixed amount per bed per year | The landlord, quarterly |
| Selling within 2 years of purchase | 24% of the gain | The seller, unless it was their home |
| Inheritance and gifts | 4% | The recipient, except spouses and direct-line relatives |
Property tax since 2025
From 1 January 2025 the old holiday home tax was replaced by a property tax (porez na nekretnine). The city or municipality sets a rate between €0.60 and €8.00 per square metre of usable floor area. Homes used as a permanent residence or let long term are exempt. The owner on 31 March pays within 15 days of the assessment. Example: an empty 70 m² coastal flat at €5 per m² costs €350 a year, about $394.
Letting to tourists
An individual letting up to 10 rooms or 20 beds can pay a fixed amount per bed, set by the municipality (by 15 December, for the next year) within a band based on its tourism index.
| Tourism development group | Band per bed per year | If no decision is adopted |
|---|---|---|
| I (most touristic) | $120-340 (€100-300) | $225 (€200) |
| II | $80-230 (€70-200) | $152 (€135) |
| III | $35-170 (€30-150) | $102 (€90) |
| IV and unclassified | $25-120 (€20-100) | $67 (€60) |
In late May 2026, in an anti-inflation package, the government announced higher minimums: from $113 (€100) to $169 (€150) per bed in group I and from $79 (€70) to $113 (€100) in group II. The timing is set by the municipality's decision, and for your address ask an expert; tourist tax and a tourist board fee come on top. We source rental properties through our Croatia investment property service.
Selling property
A gain on the sale of real estate is taxed at 24% if the property is sold within two years of acquisition. There is no tax if the property was the home of the seller or their family, on sales between spouses and close relatives, or on the sale of inherited property. Selling more than three properties of the same type within five years of acquisition makes the gain taxable even after two years.
Inheritance and gifts
The 4% tax applies to cash, monetary claims and securities, and to movable assets where the market value of an individual item exceeds $7,530 (€6,700). Inherited or gifted real estate pays the 3% transfer tax instead. Spouses, direct-line relatives and adoptees are exempt from both, siblings pay.
Capital gains and crypto
Gains on the sale of shares, bonds, fund units and crypto are taxed at 12% if the asset is sold within two years of purchase. After two years the gain is tax-free, whatever the amount. Cost is FIFO, losses offset only same-year gains, and the investor self-assesses on the JOPPD form by the end of February.
The law treats an exchange, not only a sale, as a disposal of financial assets, so crypto-to-crypto swaps may also be taxable; in practice sometimes only sales for fiat are taxed, so Murblz specialists confirm the treatment of your own trades in advance. Foreign dividends and interest are self-declared, with a credit for foreign tax via the INO-DOH form. For other countries, see our article on crypto and relocation.
A special tax is charged on first registration of a car, based on price, CO2 and engine type; electric cars are exempt.
Non-residents, withholding tax and double tax treaties
A non-resident's salary for work in Croatia is taxed on the normal scale; investment income and payments to foreign companies are taxed at source.
| Payment to a non-resident | Withholding rate |
|---|---|
| Dividends to a foreign company | 10%, 0% for European Union parent companies meeting the Directive conditions |
| Dividends and interest to an individual | 12% |
| Interest to a foreign company | 15%, with exceptions for bank loans and bonds |
| Royalties and licence fees | 15% |
| Fees for performers and athletes paid to companies | 10% |
| All fees, consulting, audit and market research paid to companies in European Union non-cooperative jurisdictions | 25% |
Croatia has more than 60 double tax treaties in force. Among former Soviet states it has treaties with Russia, Ukraine, Belarus, Kazakhstan, Moldova, Armenia, Azerbaijan, Georgia, Turkmenistan, Estonia, Latvia and Lithuania; there are none with Kyrgyzstan, Uzbekistan or Tajikistan. Others include the United Arab Emirates, Turkey, Israel, the United Kingdom, Germany, Serbia, Montenegro, Cyprus and China. The United States treaty (signed 2022, protocol April 2026) is not yet in force.
The treaty with Russia, signed on 2 October 1995, works only in part: since 8 August 2023 Russia has suspended articles 5-22 and 24, including dividends, interest, royalties, capital gains, employment income and pensions, while the articles on residency and elimination of double taxation remain in force. Croatia has not terminated it and still applies treaty rates; Russia withholds at its domestic rates, and tax paid in one country is still credited in the other, up to its own tax on the same income. For how this affects your payments, ask an expert.
Filing, deadlines and what changed in 2025-2026
The main deadlines for individuals and companies.
| What | Deadline |
|---|---|
| Annual personal income tax return | End of February of the following year |
| Tax on capital gains (JOPPD form) | Calculated and paid by the end of February of the following year |
| Lump-sum obrt PO-SD report | By 15 January of the following year |
| Lump-sum obrt contributions | Monthly by the 15th for the previous month |
| Value added tax return | From 2026, by the last day of the month after the period |
| Corporate tax return | Within 4 months of the year end, electronic only |
| Property tax | Information by 31 March, payment within 15 days of the assessment |
Late payment attracts interest, and the limitation period is generally up to six years. From 2026 auditors may copy electronic data, and taxpayers must on request give access to software and databases and hand over the codes and passwords of fiscalisation software.
| When | What changed |
|---|---|
| 1 January 2025 | Personal allowance raised from $629 (€560) to $674 (€600) a month |
| 1 January 2025 | Higher-rate threshold raised from $56,600 (€50,400) to $67,400 (€60,000) a year, new rate bands for cities |
| 1 January 2025 | Holiday home tax replaced by a property tax of €0.60-8.00 per m² |
| 1 January 2025 | Value added tax registration threshold and lump-sum obrt limit raised to $67,400 (€60,000) |
| 1 January 2026 | Minimum wage of $1,180 (€1,050), maximum contribution base of $13,500 (€11,958) |
| 1 January 2026 | Mandatory e-invoicing between businesses registered for value added tax, fiscalisation of all invoices |
| 1 January 2026 | 13 cities and municipalities changed their income tax rates, including Rijeka and Pula |
| 1 January 2027 | E-invoicing becomes mandatory for businesses outside the value added tax system too |
What it means if you are moving to Croatia
Croatia is neither a tax haven nor a punishing tax state.
A one-year lease can make you resident. A home at your disposal for 183 days makes you resident, and Croatia then taxes your worldwide income.
Your city matters. Zagreb uses the maximum 23% and 33%; Rijeka is among the lowest big cities at 20% and 25%.
Hiring is expensive. Contributions of 20% and 16.5% create a wedge of about 43% on a $3,370 (€3,000) salary.
There is no expat regime. The five-year exemption is for returning Croatians; the nomad regime is narrow and lasts up to 18 months.
A lump-sum obrt is cheap while the business is small. Around 10% including contributions up to $67,400 (€60,000), but the regime shuts at the threshold.
Investors are reasonably well treated. 12% on dividends and interest, no tax on gains after two years, but foreign income is self-declared. A personal account in Croatia helps with holding assets locally.
A second home now costs more. Empty homes pay property tax, and the tax on tourist lets is rising.
Not every treaty works in full. Where the other country has suspended key articles, its withholding is not reduced, but the tax credit may survive.
Comparing the region? See taxes in Montenegro, our overview of taxes in Europe in 2026 and taxes by country. Relocation routes are on the Croatia page, and life on the coast is in our guide to moving to Split; for structuring, talk to Murblz specialists.
Your actual tax burden depends on your residency, your city, your business structure and income from other countries: a manager goes through your situation in a free consultation.
FAQ
What is the income tax rate in Croatia in 2026?
What is the VAT rate in Croatia in 2026?
What is the corporate tax rate in Croatia?
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Does Croatia have double tax treaties?
How much tax does a lump-sum obrt pay in Croatia?
Services
Murblz services in Croatia
The tax rate is only half the picture. The other half is where the company sits, where the money is held and who files the accounts. Murblz specialists help with that in the same country. The quote is fixed in writing before work starts.
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