Croatia: Tax measures effective in 2018 | KPMG Global
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Croatia: Tax measures effective in 2018

Croatia: Tax measures effective in 2018

Tax provisions in Croatia that are effective beginning 1 January 2018 include changes to:


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  • The maximum tax deductible interest rate on loans received by a taxpayer from a foreign related party, decreased from 4.97% per annum to 4.55% per annum
  • The minimum taxable interest rate on loans provided by a taxpayer to a foreign related party, decreased from 4.97% per annum to 4.55% per annum
  • The value added tax (VAT) rules, such as the introduction of a measure allowing recoverability of 50% of input VAT for personal vehicles with a value below HRK 400,000
  • The VAT registration threshold, increased from HRK 230,000 to HRK 300,000 
  • The rules for import VAT for certain equipment and machinery with value above HRK 1 million, not payable but rather reverse-charged and recovered within the same VAT return (“cash free”)
  • The individual (personal) income tax including measures concerning claims for dependent children, employer-provided benefits for seasonal workers, fringe benefit rules
  • The special tax on motor vehicles
  • The allowable percentage of company car expenses, decreased from 70% to 50%


Read a 2018 report (Croatian and English) prepared by the KPMG member firm in Croatia

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