Tax In Croatia

A Contractor's Guide to Taxes : 

One of the most consistently challenging aspects of contracting in Croatia is complying with the country’s tax system. As well as paying tax in Croatia, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income: 

If you’re working in Croatia under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Croatia for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Croatia, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Croatia through PAYE is left with the prospect of doing everything themselves.

Do you know much about Croatian Tax Law? Does Croatia have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Croatia can range from 24 to 36 percent not inclusive of municipal tax, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator: 

If you are a contractor and want a calculation on your tax and net retention in Croatia, we can supply it to you free of charge. 

Using an Umbrella Company for Income Tax : 

Contractors in Croatia are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Croatian umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Croatian taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Croatian tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax: 

We work with numerous umbrella companies in Croatia, many of whom are experts in tax and immigration laws. If you have any questions about tax in Croatia, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Croatian work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Croatia but without the overhead of directly dealing with the Croatian tax authorities. Get in touch with us today for some reliable advice on tax in Croatia!

 

When Do You Need to Lodge Your Tax Return?: 
After the end of the tax year (Dec 31).
Tax Filing Deadline : 
End of February. Note: If you have income from abroad, you must file the INO-DOH form before January 31.
Can you file it online? : 
Yes, https://e-porezna.porezna-uprava.hr/Prijava.aspx?ReturnUrl=%2f
Currency: 
Croatian Kuna (HRK)
Tax-free Threshold in: 
None
Grossed Income: 
First 210,000
Tax Rate: 
24%
Grossed Income: 
Above 210,000
Tax Rate: 
36%
How long does it take to set up: 
7 days
How much does it cost: 
HRK 5,730 + additional VAT fee
Is it easy? : 
Starting a Business Rank: 87
How to File Taxes in: 

Only individuals who realize income from self-employment or income from abroad must submit an annual tax return. In all other cases (e.g. regular employment income, other income) the tax authorities will perform the annual tax calculation and issue the tax assessment accordingly. Any tax liability must be paid within 15 days of receipt of the annual tax assessment.

The process of filing income tax in Croatia for individuals who realize income from self-employment or generated income from abroad involves:

Step 1: Enter the National Identification and Authorisation System (NIAS) here. Select one of the credentials and follow the sign-in instructions.

Step 2: On the Početna page (Home page), click Dostavi obrazac (submit a form) which will show a list of tax forms.

  • JOPPD Form: for individuals that earned capital gains.
  • INO-DOH Form: for individuals that have income abroad.

Step 3: Complete the required form and attach the supporting documents.

Step 4: Submit the form and await the tax assessment.

Step 5: Pay any tax liabilities within 15 days of receipt of the annual tax assessment.

 

Additional Information

Guide for filing tax returns in Croatian available here

Notes: 

Income tax is increased by municipal surcharges ranging from 0% to 18% which are levied on personal income by the local government. The highest rate of 18% applies in Zagreb. 

Does the 183 day rule apply in: 

Yes

When do you become a tax resident in: 

You become a tax resident in Croatia if you have a permanent or temporary place of residence in Croatia.

  • You are considered to have permanent residency if you own a place of abode or have one at your disposal for an uninterrupted period of 183 days.
  • If you stay in Croatia for at least 183 days, you are considered to have a temporary place of residence.
Am I taxed on my global income in: 

Yes, if you are a resident. Non-residents are subject to tax on their Croatian-sourced income only.

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