Europe

Croatia: tax at a glance

A eurozone member where income tax is set by each municipality up to about 35.4%, alongside 18% corporate tax and the region's highest VAT rate, 25%.

Worldwide (residence-based) Last verified July 2026

The taxes

Personal income (top)
35.4%
Corporate income
18%
Capital gains
A 10% final withholding tax on securities held under 2 yrs, with an exemption after 2 yrs
VAT / PDV
25%
Dividends (WHT)
10%
Interest (WHT)
15%
Royalties (WHT)
15%
Social security (employee)
20%, covering pension
Social security (employer)
16.5%, covering health
Wealth tax
None
Inheritance / estate
4% on inheritance and gifts, with close family exempt
Property tax
A new annual real estate tax from 2025, charged per square meter in euros, plus a 3% property transfer tax
Other
A 20% withholding tax on payments to non-cooperative jurisdictions

How the system works

Tax system
Worldwide (residence-based)
Foreign income
Taxed (worldwide)
Taxes by citizenship
No
Exit tax
Yes, leaving has a cost
CFC rules
Yes
CRS
Participating
Special regime
A digital-nomad residence permit with an income-tax exemption

The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.

Frequently asked

What is the income tax rate in Croatia?

The top marginal personal income tax rate in Croatia is 35.4%. Two rates, roughly 20% and 35.4%, with the exact top rate set by each municipality. Digital-nomad income can be exempt.

What is the corporate tax rate in Croatia?

The headline corporate income tax rate is 18%.

Does Croatia tax capital gains?

Capital gains for individuals: A 10% final withholding tax on securities held under 2 yrs, with an exemption after 2 yrs.