Do I need to open a bank account in Croatia?

UPDATED: 21.11.2023.

Just because you live in Croatia, doesn’t mean you need to open a bank account in Croatia. There are a variety of factors to consider before opening up a bank account.

There was a time in the not-to-distant past when the police required that every person applying for residence show they had money to support themselves on a Croatian bank account. Lately, they started accepting foreign bank statements. Due to this change in procedure, there is even less of a reason to open a bank account in Croatia in certain scenarios.

We’ll go over the reasons why you may or may not want a bank account below. Let’s get started…

Do I need to open a bank account in Croatia?

If you are an individual without a business or a job in Croatia

If you are financially independent or employed outside of Croatia, then you don’t need a bank account.

Really?

Really. If you are financially based outside Croatia, then it doesn’t make a lot of sense to pay a monthly fee to have a bank account in Croatia if you aren’t going to use it. Bank accounts are used primarily for bill payments and receiving a salary. As an alternative, you can pay bills at the post office for a small fee per bill. For invoices associated with your health insurance, a small percentage is charged to pay the bill instead of a flat amount, which is negligible.

If you make all your money outside Croatia, it’s not a good idea to move large amounts into a Croatian bank account for use. This puts you on a radar you don’t want to be on.

If you are an individual that owns a business

Yes, you most definitely, unequivocally need a bank account. This is where your salary will be deposited as long as you own the business and collect a salary.

If you are an individual with a Croatian job

Yep, you need a bank account too. This is where you’ll receive your salary.

How to open a Croatian bank account

To open a bank account, you’ll need to be registered at an address (with proof from the Policija or an ID card) and have an OIB identification number.

You will also need a valid reason for opening the account, which is usually owning a property or a salary.

If the reason for opening the account is the salary you will need to present the work contract as well. Most banks require a copy of the entire work contract you have with the employer, while HPB only requires the first page.

If the reason for opening the account is property ownership, you will need to present a land registry extract showing that you are the owner of the property.

If you plan to pay bills from this account, best to sign up for internet banking and bill pay. You’ll be charged a small fee for this service.

Before opening a bank account, check out our comparison of the largest Croatian banks here.

What else should I know?

If you have any debt in Croatia whatsoever, the government will take it out of your bank account without warning.

Haven’t paid your national health insurance fee? First, they freeze the money, then they take it, and you will not get it back. I would avoid a situation where the government must resort to freezing your bank account as it is a laborious and extremely stressful process to get it unfrozen and most likely you’re not getting that money back. If they took your money, then you probably owed that money.

To be clear, getting your account “unfrozen” does not mean that you get your money back. It only means that you have proven that you’ve satisfied the debt in full, at which point your account will be unlocked and usable again.

Are you an American?

Even in Croatia, you cannot get away from Uncle Sam.

As part of FACTA, the US “requires” foreign banks to report bank accounts for all American citizens. By “requires” I mean, they have threatened to freeze wire transfers that go through the US from the foreign bank for non-compliance.

If you are an American citizen and plan to open a bank account in Croatia (or any foreign country really), the process is lengthier than for non-Americans. Be prepared to complete some IRS tax forms. You may also need to provide a third ID (like a driver’s license) that shows an American address, in addition to your passport and Croatia ID.

There is a lot of paperwork. It can take an hour to sort through all of it with the bank. Usually, you’ll get a banker who has not done this before. That also adds time, but be patient. Remember that these kind Croatians are having to fill out tax forms for the overbearing United States.

On top of the FACTA requirement for banks, you as a citizen are required to file an FBAR annually if you have foreign accounts with a combined value of $10,000 at any time during the tax year. You can file an FBAR online here. Please note that this $10,000 threshold could increase at the discretion of the IRS in future tax years. Here is what can happen to you if you fail to file an FBAR.

Freedom tastes good, doesn’t it?