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All the taxes you might pay in Croatia: Guide for 2023

Croatia income tax return
Image by 34 Portal

UPDATED: 16/09/2022

There are a LOT of taxes in Croatia. If you’ve been here for more than 5 minutes, you’ve probably heard a local complaining about them. Croatia actually has 24 different taxes that you might have to pay depending on your activities. Some of them are mandatory for all citizens, and some of them apply to specific businesses and activities.

In this post, we summarize all the possible taxes that are charged in Croatia including how, when and why they are charged. If you want help sorting out which taxes you’ll have to pay while living in Croatia, click here.

Taxes and tax rates in Croatia

The tax system in Croatia is made up of 6 tax buckets:

  1. National
  2. County
  3. City and municipal
  4. Joint
  5. Gambling
  6. Award games

Each bucket is made up of a variety of taxes that are triggered by various activities. We’ll go through each one and include the tax rate or the method for which the tax is calculated.

#1 Državni porezi (National taxes)

Taxes that feed into to the Croatian national budget.

  1. Porez na dodanu vrijednost (PDV)
    • Value added tax that is added to most products and services that you buy. You can read more about which items are subject to PDV here.
  2. Porez na dobit (Profit tax)
    • Corporate income tax is paid on the profit made by companies and small entrepreneurs. Profit tax rates are 10% for up to 7.500.000 kuna or 18% for more than 7.500.000 kuna.
  3. Posebni porezi i trošarine (Special taxes and excise duties)
    • Posebni porez na motorna vozila (Special tax on motor vehicles)
      • Vehicle owners pay for special taxes on passenger cars, other motor vehicles, vessels, and aircraft once a year during the annual registration process.
    • Posebni porez na kavu i bezalkoholna pića (Special tax on coffee and soft drinks)
      • Warehouses, producers and sellers pay a special tax on coffee (calculated on net mass) and non-alcoholic beverages (calculated by volume in hectoliters and amount of sugar, methyl-xanthine and taurine).
    • Porez na premije osiguranja od automobilske odgovornosti i premije kasko osiguranja cestovnih vozila
      • Tax on liability and comprehensive road vehicle insurance premiums (10-15%)
    • Trošarinski sustav oporezivanja alkohola, alkoholnih pića, duhanskih proizvoda, energenata i električne energije
      • Excise duties are levied on alcohol, alcoholic beverages, tobacco products, energy products, and electricity. There are formulas and rules for calculation of tax for each specific category.

#2 Županijski porezi (County taxes)

County taxes belong to the budgets of the 20 counties and the city of Zagreb.

  1. Porez na nasljedstva i darove (Inheritance and gift tax)
  2. Porez na cestovna motorna vozila (Road motor vehicle tax)
    • Vehicle owners pay a tax on road motor vehicles during the annual registration process registration. This tax ranges from 30 to 1500 kuna per year.
  3. Porez na plovila (Vessel tax)
    • Owners of vessels must pay a tax on vessels once a year. This tax ranges from 100 to 5000 kuna per year.
  4. Porez na automate za zabavne igre (Tax on slot machines)
    • Owners of coin-operated machines used for amusement must pay a levy of 100 kuna per month.

#3 Gradski ili općinski porezi (City or municipal taxes)

City or municipal taxes belong to city or municipal budgets.

  1. Prirez porezu na dohodak (Surtax or income tax)
  2. Porez na potrošnju (Consumption tax)
    • Owners of catering service companies must pay a consumption tax of 3% on the sales price of alcoholic and non-alcoholic beverages
  3. Porez na kuće za odmor (Vacation home tax)
    • Owners of holiday houses must pay a tax on holiday houses of 5 to 15 kuna per square meter. This refers to houses or apartments that you use occasionally or seasonally.
  4. Porez na korištenje javnih površina (Tax on the use of public spaces)
    • A tax is added to the cost of using public land. The local jurisdiction who controls the land decides on the fee charged.
  5. Porez na promet nekretnina (Real estate transfer taxes)
    • Real estate owners must pay a 3% real estate transfer tax.

#4 Zajednički porez (Joint taxes)

Joint taxes belong partially to the national budget and partially belong to county, city or municipal budgets.

  1. Porez na dohodak (Income tax)
    • Income tax is obliged for residents who receive worldwide income (20% or 30%). This tax is charged on the following types of income:
      • Salary or pension from a company
        • Paid for by the employer
      • Salary or pension from your own company
        • Paid for by you as the employer
      • Property or property rights
      • Capital earnings
      • Freelance income
        • Paid for by the employer

Thresholds for income tax

    • 20% – Up to 360.000 kuna per year (up to 30.000 per month)
    • 30% – More than 360.000 kuna per year (more than 30.000 per month)

NOTE: Croatia will tax your foreign pension or foreign income depending on the taxation treaty in place with the country from where you earn that income. You can read all about which foreign income gets taxed in Croatia here.

#5 Porezi na dobitke od igara na sreću i naknade na priređivanje igara na sreću (Taxes on winnings from games of chance and fee for organizing games of chance)

These taxes entirely belong to the Croatian state budget.

  1. Lutrijske igre (Lottery games)
    • Mjesečna naknada za priređivanje lutrijskih igara
      • Organizers of lottery games pay a monthly fee of 10% of the total value of sold lottery tickets or payments received for each game.
    • Porez na dobitke od lutrijskih igara na sreću
      • Tax on winnings from lottery games is obliged for citizens who won a lottery game according to the following structure:
        • 10% if you won 750,00 kn to 10.000,00 kn
        • 15% if you won 10.000,00 kn to 30.000,00 kn
        • 20% if you won 30.000,00 kn to 500.000,00 kn
        • 30% if you won more than 500.000,00 kn
  2. Igre u casinima (Casino games)
    • Casino games organizers pay a tax for organizing game sessions in the amount of:
      • 15% on the sum of daily calculations of all tables
      • 15% on the sum of daily calculations of all slot machines
      • 15% on the percentage of payment that the organizer withholds from all players in games that players play against each other
      • 25% on the percentage of payment that the organizer withholds from all tournament participants
  3. Igre klađenja (Betting games)
    • Naknade za priređivanje klađenja
      • Fees for the organizing betting games pays an organizer of a betting game
        • Monthly fee of 5% of the total amount of payment
        • Annual fee for arranging betting through payment points and self-service terminals is 1.000.000,00 kn
        • Annual betting fee for online betting online sales channels is 3.000.000,00 kn
    • ​Porez na dobitke od igara klađenja (Tax on winnings from betting games)
      • Tax on winnings from betting games pays a person who won a betting game paid according to this structure:
        • 10% on winnings up to 10,000.00 kn
        • 15% on winnings 10,000.00 to 30,000.00 kn
        • 20% on winnings 30,000.00 to 500,000.00 kn
        • 30% on winnings above 500,000.00
  4. Igre na sreću na automatima (Slot machine gambling)
    • Fees for organizing slot machine games pay organizers of slot machine games
      • Monthly fee:
        • 25% of the sum of the daily calculations of all the same slot machines
      • Annual fee:
        • 10,000.00 kn per slot machine
        • 40.000,00 kn for electronic roulette up to 6 playing spots
        • 50.000,00 kn for electronic roulette with more than 6 tables
      • Naknada za priređivanje prigodnih jednokratnih igara na sreću
        • Organizers of occasional one-time games of chance pay a 5% fee.

 

#6 Naknada za priređivanje nagradnih igara (Fee for organizing award games)

  1. Propisana uplata priređivača nagradnih igara u korist Hrvatskog crvenog križa
    • 5% fee for organizing award games pays an organizer of award game

Want to know definitively what taxes you’ll need to pay while living in Croatia?

Taxes in Croatia can get a bit sticky, especially when you throw in all the laws and treaties. It can be very hard to know exactly what you might have to pay to the Croatian government.

We can connect you to an expat-vetted tax advisor and accountant who can perform a full evaluation of your tax liability in Croatia based on your personal situation.

To be connected with our tax wizard, please complete the below form based on your situation.

Please note: All information provided by Expat in Croatia is only for the purposes of guidance. It does not constitute legal or financial advice in any form. It is important to understand that Croatian laws and bureaucratic rules often change and each personal case is individual and different rules may apply. For legal advice, you must consult with a licensed Croatian lawyer. For financial advice, you must consult with a licensed Croatian tax advisor or accountant. We can recommend one if you contact us.

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