How dividend tax works in Croatia
For individuals, Croatia generally taxes dividends and profit shares under the 12% capital income regime. In practice, tax is usually withheld by the payer, and no personal allowance applies.
For companies, dividends and profit shares paid to resident companies are generally not taxable, while dividends paid to non-resident companies are generally subject to 10% withholding tax unless a treaty or EU rule reduces the rate.
Foreign dividends still need treaty and residence checks. The source country can withhold tax first, and Croatia's rules only decide how the dividend is taxed after it arrives.
Tax rates at a glance
- Individual dividend tax
- 12%Standard rate
- Dividend withholding tax
- 10%
- Resident company receipt
- 0%Exempt
- Foreign dividend income
- 12%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsHolding companiesFoundersExpatsShareholders
Watch out for
- Historic profit periods matter in Croatia, so check the source of retained earnings before a distribution.
- Foreign withholding tax can reduce the amount you actually receive before Croatia ever gets involved.
- Treaty relief and residence status can change the effective rate, especially for cross-border shareholders.
Frequently asked questions
Does Croatia tax dividends?
Yes. Individuals generally pay 12% on dividend income, and company distributions can also face withholding tax in some outbound cases.
Does Croatia have dividend withholding tax?
Yes, but the company-side rules are different from the individual income tax rules. Outbound dividends to some non-resident companies are generally subject to 10% withholding tax.
Are foreign dividends taxed in Croatia?
If you are a Croatian resident, foreign dividends are generally taxed under the 12% capital income rules, subject to any foreign tax credit or treaty effect.