Tax system

• 10% for revenues up to EUR 1,000,000.00 generated in the tax period, or
• 18% for the revenues generated in the tax period are equal to or greater than EUR 1,000,000.00.

Profit Tax Act (OG 177/04, 90/05, 57/06, 146/08, 80/10, 22/12, 148/13, 143/14, 50/16, 115/16, 106/18, 121/19, 32/20, 138/20, 114/22, 114/23)

10% and 18%

• 15% in general,
• 10% for dividends and profit shares and for performances by foreign performers,
• 25% on all types of taxable fees and services, as well as on market research, tax and business consulting and audit services, when paid to persons who have their headquarters or place of actual administration or business supervision in countries that are on the EU list of non-cooperative jurisdictions in tax purposes, with which the Republic of Croatia does not apply the treaty on the avoidance of double taxation.

Profit Tax Act (OG 177/04, 90/05, 57/06, 146/08, 80/10, 22/12, 148/13, 143/14, 50/16, 115/16, 106/18, 121/19, 32/20, 138/20, 114/22, 14/23)

10%

15%

25%

Capital income tax on the basis of interest, as well as capital income tax on the basis of capital gains is paid at the rate of 12%.

Income Tax Act (OG 115/16, 106/18, 121/19, 32/20, 138/20, 151/22, 114/23, 152/24)

12%

 Income Tax rate (income from independent work, income from self-employment and other income) is:

• 15%-23%* for a monthly basis up to 5,000.00 euros (60,000.00 euros per year)

• 25%-33%* for a monthly basis of 5,000.00 euros (60,000.00 euros per year)

*If the representative body of the local self-government unit has not made a decision to prescribe the level of tax rates, a rate of 20% is applied to the tax base up to EUR 50,400.00 per year and 30% to the part of the tax base that exceeds the amount of EUR 50,400.00 per year.

Tax on final income (income from property and property rights, income from capital and other income)

• 12%, 24% or 35%; depending on the source of income

Income Tax act (OG 115/16, 106/18, 121/19, 32/20, 138/20, 151/22, 114/23, 152/24)

15%-23%*

25%-33%*

12%, 24%, 36%

When calculating VAT, in accordance with the Value Added Tax Act, four rates are applied:

• 25% is general rate
• Reduced VAT rate of 13% is applied for following goods and services:

a) accommodation services and accommodation with breakfast, half board or full board services in hotels or similar purpose facilities, including holiday accommodation, accommodation rental, in holiday camps or places designated for camping and accommodation in nautical tourism vessels,

b) newspapers and magazines of a newspaper publisher with 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, that are issued periodically apart from those which overall or in part contain ads or are used for advertising, or which consist in whole or in part of video or music content,

c) child car seats and baby diapers,

d) menstrual supplies,

e) water delivery, other than water placed on the market in bottles or another packaging, in terms of public water supply and public drainage according to a special regulation,

f) electricity supply to another supplier or final user, including charges related to that supply,

g) delivery of natural gas and heating from thermal stations, including fees related to these deliveries (the rate of 13% is calculated and paid from April 1, 2025),

h) firewood, pellets, briquettes and wood chips (the rate of 13% is calculated and paid from April 1, 2025),

i) public service of mixed municipal waste collection, biodegradable municipal waste and separate waste collection pursuant to a special regulation,

j) urns and coffins,

k) services and related copyrights of writers, composers and performers and holders of phonogram rights who are members of appropriate collective management organizations performing this activity pursuant to special regulations in the copyright field and related rights and with the prior approval of state administration body responsible for intellectual property,

l) preparation and serving of dishes and desserts in the catering facility and outside the catering facility pursuant to a special regulation.

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

a) all types of bread,

b) all types of milk (cow’s, sheep’s, goat’s) put on the market under the same name in liquid form, fresh, pasteurized, homogenised, condensed (excluding sour milk, yoghurt, kefir, chocolate milk and other milk products), substitutes for breast milk,

c) books of professional, scientific, artistic, cultural and educational content, textbooks for pedagogical education, for primary, secondary and higher education, except for those which contain or serve advertising in whole or in part and other than those which are entirely or they mostly consist of videos or music content,

d) medicinal products authorized by the competent authority for medicinal products and medical devices,

e) medical equipment, aids and other devices used to alleviate the treatment of disability exclusively for the personal use of the disabled prescribed by the general act on orthopaedic and other aids of the Croatian Health Insurance Institute,

f) cinema tickets, tickets for concerts, sports events and cultural events, other than cultural services and closely related supplies of goods, performed by cultural institutions, public authorities or other legal entities in culture exempt from VAT,

g) newspapers of a newspaper publisher having a media statute, which are published daily, other than those which contain or serve advertising in whole or in part and other than those which consist, in whole or in part video or music content,

h) scientific journals,

i) baby food and processed cereal-based foods for infants and young children,

j) edible oils and fats, of vegetable and animal origin, butter and margarine,

k) delivery of live animals: cattle, pigs, sheep, goats, horses, donkeys, domestic poultry, hares and rabbits,

l) delivery of fresh or chilled meat and edible slaughter products from: cattle, pigs, sheep, goats, horses, donkeys, domestic poultry, hares and rabbits,

m) delivery of fresh or chilled sausages and similar meat products, meat slaughter products or blood,

n) delivery of live fish,

o) delivery of fresh or chilled fish, molluscs and other aquatic invertebrates,

p) delivery of fresh or chilled crabs,

r) delivery of fresh or chilled vegetables, roots and tubers, including leguminous dried vegetables,

s) delivery of fresh and dried fruits and nuts,

t) delivery of fresh poultry eggs, in shell,

u) seedlings and seeds,

v) fertilizers and pesticides and other agrochemical products,

z) products mainly used as animal feed, except pet food,

ž) supply of natural gas, including charges related to that supply and delivery of firewood, pellets, briquettes and wood chips (exceptionally, until March 31, 2025).

• Reduced VAT rate of 0% is applied for delivery and installation of:

a) solar panels on private residential buildings, living spaces and public and other buildings used for activities of public interest and the delivery and installation of solar panels in the vicinity of such buildings, spaces and buildings.

Value Added Tax Act (OG 73/13, 99/13, 148/13, 153/13, 143/14, 115/16, 106/18, 121/19, 138/20, 39/22, 113/22, 33/23, 114/23, 35/24, 152/24)

0%, 5%, 13%, 25%

• Real estate Transfer Tax rate is 3%*.

*The real estate transfer is not calculated for the acquisition of real estate for which the value added tax (VAT) is payable. Value added tax (VAT) of 25% is calculated and paid by taxpayers who are registered in the register of VAT payers when they deliver construction land and buildings, or parts of buildings (and the land on which they were built), if these buildings and their parts are delivered before the first occupancy or use or where no more than two years have passed from the date of first occupancy or use to the date of the next transfer.

Real Estate Transaction Tax Act (OG 115/16, 106/18)
Value Added Tax Act (OG 73/13, 99/13, 148/13, 153/13, 143/14, 115/16, 106/18, 121/19, 138/20, 39/22, 113/ 22, 33/23, 114/23, 35/24, 152/24)

3%*