Europe
Croatia tax rates 2026
A eurozone member where income tax is set by each municipality up to about 35.4%, alongside 18% corporate tax and the region's highest VAT rate, 25%.
Worldwide (residence-based)
Last verified
The taxes
| Personal income (top) | 35.4%Two rates, roughly 20% and 35.4%, with the exact top rate set by each municipality. Digital-nomad income can be exempt. |
|---|---|
| Corporate income | 18% |
| Capital gains | A 10% final withholding tax on securities held under 2 yrs, with an exemption after 2 yrs |
| VAT / PDV | 25% |
| Dividends (WHT) | 10% |
| Interest (WHT) | 15% |
| Royalties (WHT) | 15% |
| Social security (employee) | 20%, covering pension |
| Social security (employer) | 16.5%, covering health |
| Wealth tax | None |
| Inheritance / estate | 4% on inheritance and gifts, with close family exempt |
| Property tax | A new annual real estate tax from 2025, charged per square meter in euros, plus a 3% property transfer tax |
| Other | A 20% withholding tax on payments to non-cooperative jurisdictions |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- Yes, leaving has a cost
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
Digital nomad income exemption under Article 9(1)(26) of the Personal Income Tax Act. A separate 5-year income tax exemption applies for returning Croatian diaspora
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.
Ways to relocate to Croatia
The residency and citizenship routes that lead here, weighed against the tax picture above.