Croatia - Overview and introduction

Croatia - Overview and introduction

Taxation of international executives


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Taxation of international executives

Individuals are classified either as resident or non-resident taxpayers. Individuals resident in Croatia are taxed on their worldwide income. A non-resident individual is subject to income tax in Croatia only on income from Croatian sources.

The tax year for individuals is the calendar year.

The official currency of Croatia is the Croatian Kuna (HRK).

Personal income tax liability varies depending on the type of income. Employment income, self - employment income and so-called other income is subject to the progressive annual tax rates of 24 and 36 percent. Property and property rights income and capital income are subject to a flat tax rate of 12 percent (with some exceptions which are subject to flat tax rates of 24 or 36 percent).

In addition, local municipalities may impose city surtax liability in the range between 0 to 18 percent of personal income tax payable.

In this publication, the host country/jurisdiction refers to the country/jurisdiction to which an employee is assigned. The home country/jurisdiction refers to the country/jurisdiction where an assignee lives when she/he are not on assignment.


All information contained in this publication is summarized by KPMG Croatia d.o.o. za reviziju , the [Croatian limited liability company ] member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on

  • General Tax Law (Official Gazette no. 115/16, 106/18, 121/19, 32/20, 42/20);
  • Individual Income Tax Law (Official Gazette no. 115/16, 106/18, 121/19, 32/20),
  • Regulation (Official Gazette no. 10/17, 128/17, 106/18, 1/19, 80/19, 1/20, 74/20);
  • Law on Contributions (Official Gazette no. 84/08, 152/08, 94/09, 18/11, 22/12, 144/12, 148/13, 26/14, 30/14, 41/14, 143/14, 115/16, 106/18), Regulation (Official Gazette no. 2/09, 9/09, 97/09, 25/11, 61/12, 86/13, 157/14, 128/17, 1/19);
  • Value Added Tax Law (Official Gazette no. 73/13, USRH 99/13, 148/13, 153/13, 143/14, 115/16, 106/18, 121/19), Regulation (Official Gazette no. 79/13, 85/13, 160/13, 35/14, 157/14, 130/15, 1/17, 41/17, 128/17, 1/19, 1/20);
  • Real Estate Transfer Tax Act (Official Gazette no. 115/16, 106/18);
  • Law on Foreigners (official Gazette no. 130/11, 74/13, 69/17, 46/18, 53/20)
  • Law on Local Taxes (Official Gazette no. 115/16, 101/17).

© 2021 KPMG Croatia d.o.o. za reviziju, a Croatia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity.  Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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