Find out how much and what taxes you pay in Croatia

Taxation system in Croatia

Current taxation system in Croatia promotes equity between all taxpayers and it’s based on progressive taxation, while the payment depends on citizens’ income. Therefore, the tax values, paid by the taxpayers living or withholding a business in Croatia are among the lowest in Europe.

Croatian income tax rates are divided into:

• 12% if the total turnover amount within a tax period is no more than 3.000.000 kuna (app. 400.000€)
• 18% if the total turnover amount within a tax period is more than 000.001 kuna

The VAT (valued added tax) was introduced in Croatia in 1998 and it is charged at the standard rate of 25% for the majority of good and services. However, reduced tax rates and exemptions are to be expected.

As a result, the taxation system in Croatia is favourable to all entrepreneurs since it offers an excellent opportunity for starting a new business.

For further information, write to info@taxofia.com.