The tax structure in Croatia
allows foreign investors
to benefit from varied incentives in a stable business climate. Taxpayers, whether nationals or foreigners must align with the requirements in this sense and the applicable legislation. The VAT, the capital gains tax, and the income tax must be observed before commencing any activities in Croatia
. If you would like to open a company in Croatia
, we suggest you ask for support and complete details from our team of company formation in Croatia
The VAT in Croatia
National and foreign companies are seen as taxpayers in Croatia
, therefore, the registration for the value added tax is mandatory, especially if the products and services offered on the market generate incomes of more than HRK 230,000 (approximately EUR 32,000). The standard VAT rate in Croatia is set at 25%
but there are also lower rates of 13% and 5% for certain categories of services and goods. For instance, the VAT
of 13% rate applies to restaurant services, hotels and accommodations, entertainment services, sugary products and water supply in Croatia
. As for the VAT
rate of 5%, this is imposed on dairy products, medicines, medical equipment, and newspapers. When setting up a company in Croatia
, the VAT
registration needs to respect the conditions imposed, but instead of dealing with misunderstandings, you may get in touch with our team of advisors for support and information.
The income tax in Croatia
The incomes of companies in Croatia
are levied at certain rates, depending on the registered amount, such as:
• incomes between 0 and HRK 26,400 are levied with a 12% rate;
• incomes between HRK 26,400 and 105,600 are levied with a 25% rate;
• incomes above HRK 105,600 are levied with a 40% rate.
If your company in Croatia generate the above-mentioned revenues, then it is suggested to observe the income tax imposed on such amounts.
Other taxes in Croatia
is part of the European Union since 2013 and respects the tax legislation just like any other country member. In this sense, Croatia
imposes the following taxes
• inheritance and gift tax;
• the consumption tax;
• the tax on holiday houses;
• the tax on vessels;
• the real estate transfer tax;
• special taxes on motor vehicles.
If you want to know more about the taxes which need to be paid in Croatia
, please do not hesitate to contact
our team of company incorporation specialists in Croatia