Tax system in Croatia
Croatia taxes individuals through a progressive income tax system and companies through corporate income tax. Residents are generally taxed on worldwide income, while non-residents are taxed on Croatian-source income.
The important personal rates are local and vary by municipality or city. Annual salary and self-employment income are taxed in bands that can run from 15% to 23% on the lower band and 25% to 33% on the higher band, while capital income such as dividends, interest and many gains is generally taxed at 12%.
VAT is 25%, employee pension contributions are generally 20%, employer health contributions are 16.5%, and the 2026 compliance picture also includes mandatory e-invoicing and fiscalisation for domestic B2B and B2G transactions.
Tax rates at a glance
- Income tax
- 15%-33%Progressive
- Wealth tax
- 0%
- Inheritance tax
- 4%
- Capital gains tax
- 12%
- Corporate tax
- 10% / 18%
- Dividend tax
- 12% / 10% WHT
- VAT
- 25%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesFoundersInvestorsProperty ownersExpats
Watch out for
- Income tax rates are local, so the exact bill depends on where you live and work in Croatia.
- Croatia does not have a net wealth tax, but it does have an annual property tax on many residential properties and vacant homes, plus a 3% real estate transfer tax in many transactions.
- 2026 brings broader e-invoicing and fiscalisation rules, and large multinational groups should also check the minimum global tax rules.
Frequently asked questions
Is Croatia a low-tax country?
Not really. Croatia has 25% VAT, payroll social security, progressive personal income tax, 10% / 18% corporate tax and additional property and transfer taxes.
Does Croatia have a wealth tax?
Croatia does not levy a general net wealth tax, but annual property tax can still apply to certain homes and vacant properties.
Is Croatia good for founders and investors?
It can work well if you model payroll, VAT, e-invoicing, local income tax rates, corporate tax, and the 12% capital income rules before you move.