Corporate Tax in Croatia

The favorable tax regime in Croatia allows foreign and local entrepreneurs to expand their portfolios and plan new investments in the state. At the moment, companies registered in Croatia are subject to corporate income tax at 10% (annual revenue up to EUR 1 million) or 18% (revenue above EUR 1 million). Registering for tax purposes in Croatia is subject to particular conditions and laws which can be explained by our Croatian lawyers. Our team can offer legal advice for foreigners interested in relocating in the business field in Croatia.

Taxable revenues for companies in Croatia

Companies with profits in Croatia are subject to taxation. The investments, the sale of the assets, and the registered revenues are taxable in the country. It is good to know that businesses with establishments in Croatia must pay the corporate tax imposed on profits, alongside with the branches registered in the state which need to pay the taxes on revenues generated here. We remind foreigners that for legal support in tax planning they may address to our attorneys in Croatia. 

How capital gains are levied in Croatia

From the beginning, it is good to know that the capital gains on the real estate asset sales are subject to taxes in Croatia. The same percent is established for both limited liability companies and limited partnerships registered in Croatia. We mention that the dividends are not considered as taxable incomes for tax-resident stockholders which are establishments in Croatia.

As for the tax-resident persons, there is 12% final income tax on dividends and profit shares, with no annual tax-free amount. The withholding tax applies to dividends and profit shares allocated to foreign legal entities at 10% (lower treaty rates or the EU Parent-Subsidiary exemption may apply). Knowing complete information about the taxation regime and especially about the corporate tax in Croatia can help entrepreneurs establish their companies respecting the rules and conditions.

If you want to know more details about the tax regime in Croatia and the legal implications for your company, whether local or registered with foreign capital, we suggest you contact our law firm in Croatia.