Bank Accounts website
Flag Theory website
We are not currently operating in this jurisdiction.
For a full list of countries where we operate, please click below.

Croatia

Taxes

If you want to start a business venture in Croatia, this article explains the tax laws for a LLC(DOO) which is the most common legal entity in Croatia.

Croatia imposes corporate tax on resident companies worldwide income. The prevailing tax rate for offshore income, from our research, but seek professional advice, is 18%. Croatia may have exemptions to bring in certain income earned outside the borders. Taxes are lower than average in Croatia as the headline corp. tax rate is 18%. Companies with annual income under HRK 3m may be subject to a reduced CIT rate of 12%. Croatia ranks 62nd overall in terms of corp. taxation rate internationally.

The VAT rate in HR is 25.00%, that ranks Croatia as 171st overall in terms of value added tax rate worldwide. In terms of other taxation, an employer will contribute 17.20% to the equivalent of a social security fund and an employee will contribute 20.00%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 96 hours. Contributing to this is the number of yearly labor tax payments, which is 1 in HR.

Thin capitalisation mandates are officially enacted. This refers to any sort of restrictions on given company with respect todebt-to-asset ratios. Dividends income is not subject to Corporate Income Tax. Dividends are payments of earnings of the business, passed by the board, to a class of its shareholders. Dividends can be issued as cash payments, shares of stock, or other property. Capital Gains are considered ordinary income and subject to Corporate Income Tax. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 15%. Which means that the tax authorities expects LLC(DOO)'s to pay tax on at least 15% of money remitted abroad on interest payments, unless payments are under the EU interests directive or rate is reduced under a tax treaty. The dividends withholding tax rate is 12%. Which means that the relevant tax authorities expects companies to pay tax on at least 12% of dividends paid to non-residents, unless payments are under the EU parent-subsidiary directive or rate is reduced under a tax treaty. The royalties withholding tax rate is 15%. Which means that the taxman expects LLCs to pay tax on at least 15% of money remitted abroad on royalty payments, unless payments are under the EU royalties directive or rate is reduced under a tax treaty.
There is no known tax on wealth in Croatia. There are inheritance, transfer and real property taxes in HR. There are frequently implemented research and development tax incentives in Croatia.

The above is not tax or legal advice for your company circumstances. We are able to help you to find to an expert in Croatia who can give you the proper advice and help you need. Ready to get started? Click the free consultation button above.

Country details

Croatia
HRK
Zagreb
Europe
hr-HR, Serbian
4,491,000

Tax treaties

Country Type Date Signed
Denmark DTC  2007-09-14
Albania DTC  1994-12-02
Jordan DTC  2005-02-20
Poland DTC  1994-10-19
Montenegro DTC  2001-12-14
Kuwait DTC  2001-05-29
Qatar DTC  2008-06-24
France DTC  2003-06-19
Estonia DTC  2002-04-03
Oman DTC  1900-01-01
Mauritius DTC  2002-09-06
Greece DTC  1996-10-18
South Africa DTC  1996-11-18
Morocco DTC  2008-06-26
Spain DTC  2005-05-19
Canada DTC  1997-12-09
Belarus DTC  2003-06-11
Iran DTC  2003-05-20
Iceland DTC  2010-07-06
Hungary DTC  1996-08-30
Switzerland DTC  1999-03-12
Slovenia DTC  2005-06-10
Korea, Republic of DTC  2002-11-13
Bosnia and Herzegovina DTC  2004-06-07
Czech Republic DTC  1999-01-22
Indonesia DTC  2002-02-15
China DTC  1995-01-09
Bulgaria DTC  1997-07-15
Former Yugoslav Republic of Macedonia DTC  1994-07-06
Slovakia DTC  1996-02-12
Belgium DTC  2003-06-02
San Marino DTC  2004-10-18
Chile DTC  2003-06-24
Russian Federation DTC  1995-10-02
Armenia DTC  2009-05-22
Ireland DTC  2002-06-21
Serbia DTC  2001-12-14
Lithuania DTC  2000-05-04
Austria DTC  2000-09-21
Israel DTC  2006-09-26
Norway DTC  1983-01-10
United Kingdom DTC  1981-11-06
Malta DTC  1998-10-21
Netherlands DTC  2000-05-23
Kazakhstan DTC  2000-05-19
Georgia DTC  2013-01-18
Latvia DTC  2000-05-19
Sweden DTC  1980-06-18
Romania DTC  1986-04-29
Ukraine DTC  1996-09-10
Finland DTC  1986-05-08
Malaysia DTC  2002-02-18
Germany DTC  2006-02-06
Azerbaijan DTC  2012-03-12
Moldova, Republic of DTC  2005-05-30
Portugal DTC  2013-10-04
Italy DTC  1999-10-29
Turkey DTC  1997-09-22

Tax treaties Map

>

Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

Newsletter

Flag Theory is an internationalization and offshore solutions provider, and the creator of incorporations.io. We offer expert consultation advice and assistance.

Your privacy is important for us and we will keep your information secure. View our privacy policy

View past newsletters

Consultation with

Flag Theory is an internationalization and offshore solutions provider, and the creator of incorporations.io

In order to better serve you, we ask that you please fill out the following form as accurately as you can and provide as many details as possible. Thank you.

Your privacy is important for us and we will keep your information secure. View our privacy policy