Croatia: perfect place for pensioners

Are you a pensioner? Find out why you should move to Croatia!

The phenomenon of pensioners moving abroad is becoming more and more frequent. Numerous pensioners are deciding to leave their home country and live in an economically more convenient place with minor tax burdens and higher quality life.

Pensioners that receive medium to low pension are deciding to migrate towards countries that offer a higher quality of life. Among others, one of the favorite countries for European pensioners is Croatia that is inviting mostly thanks to its favorable economic situation. When compared to other members of the European Union, Croatia is among countries that have the best quality of life/price ratio. Furthermore, Istria is a bilingual area where both Croatian and Italian are official languages and the majority of Croatians speak English too.

To know more about the costs of living in Croatia read the following article Find out why it is convenient to live in Croatia! (Click here)

In this article, we will focus on Croatian taxation system regarding pensions.

Tax rates applied to the retirement pension differ based on the amount of pension received: minimum rate is of 12%, medium of 25% and the maximum of 40%.

Those deciding to move along their pensions too (possible only for countries that have an agreement with Croatia) will receive gross pension (without tax deduction) and will be required to pay taxes based on rates that are applied in Croatia.

Moving abroad requires 183 days (half of the year) of residency in the chosen country (including Croatia), while it is not necessary to have residency or domicile in Italy.

The next step is the registration in the Registry of Residents Abroad that includes the request for cancellation from the Registry of the Municipality of the last residency. The registration in the registry needs to be done within three months of the arrival in the new country. Afterwards, you will no longer be resident of Italy and will be able to benefit from tax rates applied in the country of destination.

Another important step is the request for transferring the retirement pension to a bank account outside Italy.

For any further information contact us on 00386 31 679 430.