Croatia
Top Income Tax
35.4%
Marginal rate
Corporate Tax
18%
Standard rate
VAT / Sales Tax
25%
Standard rate
Capital Gains
10%
Standard rate
Overview
Croatia joined the Eurozone in 2023 and offers competitive tax rates, especially for small companies at 10%. The digital nomad visa exempts holders from Croatian income tax on foreign-source income. Split and Dubrovnik attract remote workers with Mediterranean lifestyle.
Income Tax Brackets
| Income Range (EUR) | Tax Rate |
|---|---|
| 0 - 50,400 | 23.6% |
| 50,400+ | 35.4% |
Rates include municipal surtax (varies by city). Base rates are 20% and 30%.
Corporate Tax
Standard Rate
18%
Small Business Rate
10%
10% for companies with revenue under 1M EUR. 18% standard.
VAT / Sales Tax
Standard Rate
25%
Reduced Rates
5%, 13%
5% on basic food. 13% on accommodation, restaurants, newspapers.
Capital Gains Tax
Standard Rate
10%
10% on capital gains. Exempt after 2 years of holding for securities.
Social Security Contributions
Employee
20%
Employer
16.5%
Self-Employed
36.5%
Employee: 20% (pension + health). Employer: 16.5%.
Digital Nomad Visa
Digital nomad visa for non-EU citizens. Must earn at least 2,539.31 EUR/month. Valid 1 year, no Croatian income tax on foreign income.
Pros & Cons
Pros
- 10% corporate tax for small companies
- Digital nomad visa with tax exemption
- EU/Eurozone member
- Beautiful Mediterranean lifestyle
Cons
- High VAT (25%)
- High social contributions
- Limited English in government
- Smaller market
Living Indicators
Cost of Living Index
Moderate
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for Croatia is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Croatia government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.