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Taxation in Croatia

Summary

Taxes in Croatia are levied by both the central and the regional governments. Tax revenue in Croatia stood at 37.8% of GDP in 2017.[1] The most important revenue sources are income taxes, social security contributions, corporate tax and the value added tax, which are all applied on the national level.

Income earned in Croatia is subject to a progressive income tax, of two different brackets.[2]

Annual income Monthly income Rate
Less than 47,780.28 EUR Less than 3,981.69 EUR 20%
More than 47,780.28 EUR More than 3,981.69 EUR 30%

In addition to tax, local government can collect surtax depending on the residence of taxpayer.[3]

Residence Rate
Municipality up to 10%
City with less than 30,000 residents up to 12%
City with more than 30,000 residents up to 15%
City of Zagreb up to 18%

VAT in Croatia is levied at three different rates. The standard rate is 25 percent, two reduced rates are 13 and 5 percent apply on different goods and services.[4] The 13% rate apply for newspapers, magazines, bread and milk; books and scientific journals, hotels and medicines.[5]

Employment Income is subject to social security, at a rate of 16.5% for the employer and 20% for the employee.[6]

Insurance policy Employee % Employer %
Pension Fund 15%[7] -
Capital savings 5%[8] -
Health - 16.5%
Total 20.0% 16.5%

Salary calculator: https://www.moj-posao.net/Salary-Calculator/

Corporate tax depends on the revenue the company earns.[9]

Revenue Rate
Less than 995,421.06 EUR 10%
More than 995,421.06 EUR 18%

Certain expenses are tax deductible for businesses including personal means of transportation. Resident businesses are taxed on worldwide income, while foreign companies in Croatia are taxed on profits earned in Croatia.[10]

References edit

  1. ^ "Udio poreznih prihoda u BDP-u u Hrvatskoj ispod prosjeka EU-a" [The share of tax revenues in GDP in Croatia is below the EU average]. tportal.hr (in Croatian). 29 November 2018. Retrieved 9 November 2021.
  2. ^ "Income tax". Tax administration. Retrieved 9 November 2021.
  3. ^ "Income tax surtax". Tax administration. Retrieved 9 November 2021.
  4. ^ "VAT in Croatia - KPMG" (PDF). 5 February 2021.
  5. ^ "VAT - 2014" (PDF).
  6. ^ Crnički, Ninoslav (1 January 2021). "Kalkulator plaće za 2021. godinu" [Salary calculator for 2021]. Isplate.info (in Croatian). Retrieved 9 November 2021.
  7. ^ "DoprinosiIzPlace".
  8. ^ "DoprinosiIzPlace".
  9. ^ "Profit tax". Tax administration. Retrieved 9 November 2021.
  10. ^ "KPMG - Tax Card 2013" (PDF). 12 July 2021.

Further reading edit

  • "Hrvatski porezni sustav" (PDF) (in Croatian). Zagreb: Institute of Public Finance. Retrieved 19 December 2018.