Taxation in Croatia

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Taxes in Croatia are levied by both the central and the regional governments. Tax revenue in Croatia stood at 37.8% of GDP in 2017.{{Cite web|date=29 November 2018|title=Udio poreznih prihoda u BDP-u u Hrvatskoj ispod prosjeka EU-a|trans-title=The share of tax revenues in GDP in Croatia is below the EU average|url=https://www.tportal.hr/biznis/clanak/udio-poreznih-prihoda-u-bdp-u-u-hrvatskoj-ispod-prosjeka-eu-a-foto-20181129|access-date=9 November 2021|website=tportal.hr|language=hr}} The most important revenue sources are income taxes, social security contributions, corporate tax and the value added tax, which are all applied on the national level.

Income tax in Croatia is determined by the amount of income and place of residence. The tax is levied at a lower or higher rate defined by the government and determined by the local government unit. The threshold between the lower and higher rates is set at an annual income of EUR 50,400 (monthly income EUR 4,200).{{Cite web |title=Income tax |url=https://www.porezna-uprava.hr/en/Pages/Taxes/Income-tax.aspx |access-date=23 February 2025 |website=Tax administration |language=en}}

class="wikitable"
Residence ! Lower rate !Higher rate
Municipality | 15% - 20% |25% - 30%
City with less than 30,000 residents | 15% - 21% |25% - 31%
City with more than 30,000 residents |15% - 20% |25% - 32%
City of Zagreb |15% - 23% |25% - 33%

VAT in Croatia is levied at three different rates. The standard rate is 25 percent, two reduced rates are 13 and 5 percent apply on different goods and services.{{Cite web|url = http://www.kpmg.com/Global/en/services/Tax/regional-tax-centers/european-union-tax-centre/Documents/eu-country-profiles/2013-croatia.pdf|title = VAT in Croatia - KPMG|date = 5 February 2021}} The 13% rate apply for newspapers, magazines, bread and milk; books and scientific journals, hotels and medicines.{{Cite web|url = http://www.ey.com/Publication/vwLUAssets/Croatia_Tax_News_06_2013_English_Version/$FILE/EY%20Tax%20News%2006_2013.pdf|title = VAT - 2014}}

Employment Income is subject to social security, at a rate of 16.5% for the employer and 20% for the employee.{{Cite web|last=Crnički|first=Ninoslav|date=1 January 2021|title=Kalkulator plaće za 2021. godinu|trans-title=Salary calculator for 2021|url=https://www.isplate.info/kalkulator-place-2021.aspx|access-date=9 November 2021|website=Isplate.info|language=hr}}

class="wikitable"
Insurance policy ! Employee % ! Employer %
Pension Fund | 15%{{Cite web|url=https://www.porezna-uprava.hr/baza_znanja/Stranice/DoprinosiIzPlace.aspx|title=DoprinosiIzPlace}} | -
Capital savings |5%{{Cite web|url=https://www.porezna-uprava.hr/baza_znanja/Stranice/DoprinosiIzPlace.aspx|title=DoprinosiIzPlace}} |-
Health |- |16.5%
Total |20.0% |16.5%

Corporate tax depends on the revenue the company earns.{{Cite web |title=Profit tax |url=https://www.porezna-uprava.hr/en/Pages/Taxes/Profit-Tax.aspx |access-date=8 December 2021 |website=Tax administration |language=en}}

class="wikitable"
Revenue ! Rate
Less than 1,000,000.00 EUR | 10%
More than 1,000,000.00 EUR |18%

Certain expenses are tax deductible for businesses including personal means of transportation. Resident businesses are taxed on worldwide income, while foreign companies in Croatia are taxed on profits earned in Croatia.{{Cite web|url = http://www.kpmg.com/HR/en/Documents/Tax%20Card%202013%20English.pdf|title = KPMG - Tax Card 2013|date = 12 July 2021}}