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Legal Articles

Law firm Vaić & Dvorničić Ltd. > Legal Articles (Page 9)
14 June
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Tax benefits of corporate income taxation in the Republic of Croatia

Posted by Vaic
in Commercial law, Tax law

A company is, by definition, a business entity that independently and permanently performs economic activity in order to make a profit by producing, trading goods or providing services on the market. The most common form of company that appears in Croatian practice is a limited liability company, and the minimum share capital required for the establishment of this company is 2.500,00 EUR. Frequently asked questions when founding a limited liability company mostly focus on the amount of the tax rate at which profits are taxed, and the amount of the tax rate that is applied to the payment of profits paid to...

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07 June
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Tax treatment of real estate purchase in the Republic of Croatia as a citizen of a EU Member State

Posted by Vaic
in Real estate law, Tax law

If you, as citizens of EU Member States, intend to acquire ownership of a vacation home or other real estate property in the Republic of Croatia, whether for private or business purposes, your sale and purchase transaction in the Republic of Croatia is subject to a certain tax liability. You can find out more about this below. Natural persons, as citizens of EU Member States, have the same rights to acquire real estate in the Republic of Croatia as Croatian citizens, with the exception of agricultural land and real estate considered protected property under special regulations. Such citizens are considered non-residents in...

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06 June
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Means of Acquisition of Ownership in the Republic of Croatia

Posted by Vaic
in Contract law, Inheritance law, Land registry law, Real estate law

There are several ways of acquisition of ownership in the Republic of Croatia, namely: by legal act by judicial decision or decision of another competent authority by succession and by law. For the acquisition of ownership, the general requirements prescribed by the Act on Ownership and Other real Rights must be met – that is, the ability of the property to be the object of ownership, the ability of the acquirer to acquire the right of ownership and a valid legal basis for the acquisition.Depending on means of acquisition (movable or immovable property), also some other specific requirements need to be satisfied. Besides earlier mentioned general...

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31 May
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Taxation of the payment of dividends and shares in the profit of a Croatian company regarding German tax residents

Posted by Vaic
in Commercial law, Tax law

In today’s practice, it is often the case that companies doing business in the Republic of Croatia are owned by natural or legal persons resident in the Republic of Germany.The following is an overview of the tax rates applicable to the taxation of dividend payments in case where the owner of a Croatian company is a legal or natural person and a German tax resident. I. Taxation of the company’s profit – in general The operating profit of a company with a turnover of up to 995.421,06 EUR in annual income is taxed at a rate of 10%, and the profit of...

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29 May
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Taxation of net profit payments to legal and natural persons, residents of the Republic of Germany

Posted by Vaic
in Commercial law, Tax law

The realized net profit that the company established in the Republic of Croatia realizes by performing activities/services and decides to pay to the members of the company / founder is taxable by corporate tax after withholding (for legal persons) or the income tax from the capital (for natural persons).Members of the company who are tax residents of the Republic of Croatia, are fully subject to domestic tax legislation, while the situation is more complex for legal and natural persons who are not residents of the Republic of Croatia, because in these cases the provisions of the International contract for the...

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29 May
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A brief overview of the tax system of the Republic of Croatia

Posted by Vaic
in Commercial law, Labor law, Tax law

LEGAL PERSONS Profit tax A company and other legal entity resident in the Republic of Croatia that performs economic activity independently, permanently and for the purpose of making profit or income or other economically assessable benefits is liable to pay profit tax, and the taxpayer is the domestic business unit of a foreign entrepreneur (non-resident). Profit is determined according to accounting regulations as the difference between income and expenses before the calculation of profit tax, increasedand decreased according to the provisions of the Law on Profit Tax. The tax base of a resident taxpayer consists of the profit realized in the country...

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07 November
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Activity of non-residents by a permanent business unit

Posted by admin
in Commercial law, Tax law

It is known that some citizens have large amounts of money in bank accounts, while due to high inflation and low interest savings in the bank is currently not worth it. By keeping money in the bank, they are not making a profit, while at the same time inflation is reducing the value of the money saved because they can buy fewer and fewer products and services every day with the money they save, and this trend will continue in the future. To preserve the value of money, real estate investments are a good hedge against inflation and represent tangible and lasting value....

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07 November
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The Croatian Finance Agency -Credit Assessment of Debtors in Germany and Croatia

Posted by admin
in Enforcement law

FINA is the abbreviation for Financijska agencija and is a state financial agency in Croatia. FINA is a government agency where commercial register information, business accounts, business results, and liens in the form of credit reports can be requested for a fee. The Finance Agency keeps a register of all accounts of business entities and individuals, but the balances on the accounts are not known to the Agency, only the existence of accounts. The Finance Agency also maintains a register of payment bases, arranged chronologically by date as well as the exact time of receipt. In the event of...

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17 March
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Taxation of persons in the Republic of Croatia

Posted by admin
in Inheritance law, Real estate law, Tax law

In the case of taxation of individuals, a taxpayer may be an individual who earns income or an heir for all tax liabilities arising from the decedent's income until the decedent's death. In this regard, joint acquisition of income is possible in such a way that each natural person is considered a self-employed taxpayer according to the share of income. Income tax is levied on income earned in the Republic of Croatia, by residents and non-residents. Residents are natural persons who have their permanent or usual place of residence in the Republic of Croatia or who earn their income...

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