All the taxes you might pay in Croatia: Guide for 2023
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 residents, and some of them apply to specific businesses and activities.
We summarized 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.
In this post, we cover:
- Types of taxes
- National taxes
- County taxes
- City and municipal taxes
- Joint taxes
- Games of chance
- Award games
The facts are these…
Complete guide to Croatian taxes and tax rates
The tax system in Croatia is made up of 6 tax buckets:
- City and municipal
- Award games
Each bucket is made up of a variety of taxes that are triggered by various activities. In the following sections, we’ll go through each one and include the tax rate or the method for which the tax is calculated.
Državni porezi (national taxes) are taxes that feed into the Croatian national budget. They include:
#1 Porez na dodanu vrijednost (PDV)
- Value-added tax is added to most products and services that you buy. View our guide on 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 995.421,06 euros or 18% for more than 995.421,06 euros.
- Companies with over 40 million euros whose profit increased by 20% in 2022 compared to the 4-year average must pay 18% tax and 33% additional profit tax on realized extra profit.
#3 Posebni porezi i trošarine (special taxes and excise duties)
- Posebni porez na motorna vozila (special tax on motor vehicles)
- Vehicle owners pay 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 tax calculation for each specific category.
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)
- Those who receive an inheritance or gift may be subject to an inheritance and gifts tax of 4%.
#2 Porez na cestovna motorna vozila (road motor vehicle tax)
- Vehicle owners pay a tax for road motor vehicles during the annual registration process registration. This tax ranges from 3,98 euros to 199,08 euros per year.
#3 Porez na plovila (vessel tax)
- Owners of vessels must pay a tax on vessels once a year. This tax ranges from 13,27 euros to 663,61 euros 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 13,27 euros monthly per machine.
City or municipal taxes belong to city or municipal budgets.
#1 Prirez porezu na dohodak (surtax or income tax)
- Residents must pay a surtax or income tax according to surtax rates for individual cities where they live (from 0% to 18%). This tax is paid for by your employer as part of your salary.
#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 0,66 to 1,99 euros 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 that 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.
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, and it is charged on the following:
- 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
Income tax thresholds are the following:
- 20% – up to 47.780,28 euros per year (3.981,69 euros per month)
- 30% – more than 47.780,28 euros per year (3.981,69 euros per month)
Croatia will tax your foreign pension or income depending on the taxation treaty in place with the country from where you earn that income. View which foreign income gets taxed in Croatia here.
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 – residents who won a lottery game pay tax on winnings from lottery games:
- 10% if you won 99,54 to 1.327,23 euros
- 15% if you won 1.327,23 to 3.981,68 euros
- 20% if you won 3.981,68 to 66.361,40 euros
- 30% if you won more than 66.361,40 euros
#2 Igre u casinima (casino games)
- Organizers pay a tax for organizing game sessions:
- 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 – organizer pays fees for organizing betting games:
- Monthly fee of 5% of the total amount of payment
- Annual fee for arranging betting through payment points and self-service terminals is 132.722,81 euros
- Annual betting fee for online betting online sales channels is 398.168,43 euros
- Porez na dobitke od igara klađenja (tax on winnings from betting games) – people who won a betting game pays fees:
- 10% on winnings up to 1.327,23 euros
- 15% on winnings 1.327,23 to 3.981,68 euros
- 20% on winnings 3.981,68 to 66.361,40 euros
- 30% on winnings above 66.361,40 euros
#4 Igre na sreću na automatima (slot machine gambling)
- Organizer of games of chance on machines pays:
- 25% monthly fee on the basis
- For games of chance on machines – 1.327,23 euros per machine yearly
- For games of chance in an automatic club on an electronic roulette with up to 6 slots – 5.308.91 euros yearly
- For games of chance in the machine club on electronic roulette over 6 slots – 6,636.14 euros yearly
#5 Naknada za priređivanje prigodnih jednokratnih igara na sreću
- Organizers of occasional one-time games of chance pay a 5% fee.
Here belongs a prescribed payment of the organizers of prize games to benefit the Croatian Red Cross. An organizer pays a 5% fee for the organization of the award game.
Please note: Information provided by Expat in Croatia is only for the purposes of guidance. It does not constitute legal or financial advice in any form. Croatian laws and bureaucratic rules often change, and each personal case is individual, so different rules may apply. For legal advice, contact us to consult with a licensed Croatian lawyer. For financial advice, contact us to consult with a licensed Croatian tax advisor or accountant.