Starting a business in
ðŸ‡ðŸ‡·Croatia
Checked November 4, 2026 · How we score
Corporate tax
10%
Top income tax
33%
Setup from
$1,200
all-in, first year
Time to form
14 days
visit usually needed
Taxes in Croatia
| Corporate income tax | 10% 10% on profit for taxpayers with annual revenue up to EUR 1,000,000 and 18% above that; a 15% minimum tax applies to large groups under Pillar Two. |
|---|---|
| Personal income tax (top) | 33% Since 2024 cities set their own income tax rates within a range (lower band about 15-23%, higher band about 25-33%, up to around 35.4% in some cities), after the local surtax (prirez) was abolished. Social contributions are added on top. |
| Tax system | Worldwide income |
| Capital gains tax | 10%10% on capital gains from financial assets for individuals; gains on property sold within three years are taxed at ordinary rates. |
| Dividend withholding (non-residents) | 10% |
| VAT / GST | 25% |
| Social security | Employee pension and health contributions of about 20% are deducted from gross pay and employers add about 16.5%; owners-managers can opt into a simple minimum contribution base. |
Forming a company in Croatia
| Usual entity | d.o.o. (limited liability company) or j.d.o.o. (simple LLC) |
|---|---|
| Minimum capital | $2,750 |
| Setup cost (all-in) | $1,200–$3,500 |
| Annual running cost | $3,000–$8,000 |
| Time to incorporate | 14 days |
| Form remotely as a foreigner | No |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
Non-EU citizens can obtain a temporary residence permit as company owner or employee, or a digital nomad permit of up to one year; Croatia is in Schengen and the euro area so EU citizens move freely.
| Digital nomad visa | Digital nomad temporary stay permit, $3,600/month income |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 3/5 (1 = easiest) |
Special tax regimes
Small-company 10% rate
Taxpayers with annual revenue up to EUR 1 million pay 10% corporate tax instead of the standard 18%.
Digital nomad permit
Non-EU remote workers earning from abroad can stay up to one year tax-exempt on foreign income, subject to a minimum monthly income.
j.d.o.o. simple LLC
A simplified LLC with minimum capital of EUR 1 that can be registered online with a Croatian eID or via a notary.
Pros and cons
Why founders pick Croatia
- 10% corporate tax for small companies
- EU, Schengen and eurozone member
- Digital nomad permit with foreign-income exemption
- Reasonable setup and accounting costs
Watch out for
- High 25% VAT and substantial social contributions
- City-set income tax adds complexity
- Notary and local presence typically required to incorporate
- Slow bureaucracy and Croatian-language documents
Best for: Small service companies under EUR 1 million revenue · Remote workers using the digital nomad permit · EU-market businesses wanting low costs in a Schengen/euro country
Croatia: common questions
What is the corporate tax rate in Croatia?
Croatia charges 10% corporate income tax on profit for companies with annual revenue up to EUR 1 million and 18% for companies above that threshold. Dividends distributed to individuals face a further 10% withholding tax.
How much capital is needed for a Croatian company?
A standard d.o.o. requires EUR 2,500 in share capital, while a simplified j.d.o.o. can be formed with as little as EUR 1. A notary is generally required, and non-EU founders also need an OIB tax number.
Does Croatia have a digital nomad visa?
Yes. Non-EU citizens working remotely for foreign employers or clients can obtain a temporary stay permit of up to one year, with foreign income exempt from Croatian income tax during that stay. The monthly income threshold is roughly EUR 3,300; verify the latest figure with the Ministry of Interior.
What are income tax rates in Croatia?
Each city or municipality sets its own rates within national ranges, typically about 15-23% in the lower band and 25-33% in the higher band, with some cities up to about 35.4%. The higher band begins at roughly EUR 50,000-60,000 of annual taxable income.
Sources
- Croatian Tax Administration (Porezna uprava)
- Invest Croatia - Business and taxation
- PwC Worldwide Tax Summaries - Croatia
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.