TAXATION SYSTEM
Croatian taxation system has a series of measures aiming at supporting investments. Investment incentives are defined by different laws. The system has been modified to become a modern system favorable to the development of the country as a competitive location for direct investments.
The taxation system in Croatia is equal for residents and non-residents. Furthermore, Croatia has signed contracts for avoiding double taxation with 38 different countries.
Basic taxes in the taxation system of the Republic of Croatia
| Type of tax |
Tax rate |
| Profit tax |
20% |
| Profit tax after deduction (can be decreased in accordance with the contracts of avoidance of the double taxation) |
15% |
| Income tax |
0 – 45% |
| Surtax |
0 – 18% |
Value added tax
(besides the exception of 0% for certain
product categories and 10% for tourism) |
23% |
| Capital transfer tax |
5% |
You can find more information about the taxation system of the Republic of Croatia on the website of the Tax Authority of the Republic of Croatia.
CUSTOMS SYSTEM
In accordance with the Customs Tariff Act and the Customs Act for the import of goods into Croatia, the custom is paid according to the customs tariffs. You can find detailed information about customs tariffs on the website of the Customs Administration.
The Republic of Croatia, as a member of the WTO, has committed to gradually lower the customs protections and applies contracts of free trade with 37 countries, which goes in favor of its attractiveness as a location for an exports oriented production.
According to the Stabilization and Association Agreement between the Republic of Croatia and the EU, signed in 2001, the EU has abolished customs for import on Croatian goods. Customs are completely abolished and there is no transition period or other limitations regarding the import of Croatian products into the EU. Moreover, customs for importing most of the industrial products with the EU origin into Croatia were also abolished from the beginning of 2002.