Taxation of individuals in Croatia


In the case of taxation of natural persons, a taxable person may be considered a natural person who earns income or an heir for all tax liabilities arising from the income earned by the testator until his death. It is also possible to jointly acquire income in such a way that each natural person, in accordance with the share of income, represents a separate taxpayer. Income tax applies to income earned in the Republic of Croatia, including residents and non-residents. Residents are natural persons who have their permanent or usual residence in the Republic of Croatia or earn their income in the Republic of Croatia, and non-residents are those persons who earn their income in the Republic of Croatia even though they do not have a permanent or usual residence in that country. Emphasizing that non-resident persons are taxed only on income earned in the country according to the principle of “domestic income”, while resident persons are taxed on income earned domestically and abroad. It is possible to put tax on income earned from self-employment, employment, property and property rights, capital, etc., which is the tax base, and reduced by personal deduction for residents and non-residents.

RATE:- applies only to income from employment or self-employment (not in the case of taxation of income from property and capital)

  1. 20% to 360.000,00 KUNA per year (to 30.000,00 KUNA per month)
  2. 30% above 360.000,00 KUNA per year  (above 30.000,00 KUNA per month)

Income – generating natural persons in another Member State

The issue of taxation in cases where a natural person earns income outside the country of residence or habitual residence is mainly regulated by bilateral double taxation treaties in the Member States, thus disadvantaging workers earning income in other Member States with regard to freedom of movement for workers.


Taxpayer in the taxation of inheritance and gifts is any natural or legal person who inherited, received or acquired property on some other basis within the Republic of Croatia without compensation for which the tax on inheritance and gifts is paid at the rate of 4%. In accordance with the Local Taxes Act, inheritance and gift tax is paid on cash, receivables and securities (securities) and on movables, if the individual market value of movables exceeds HRK 50,000.00 on the day of determining the tax liability.

Inherited and donated real estate

It is possible to be exempt from paying tax on the acquisition of real estate by inheritance or gift, if the person:

  1. spouse, extramarital partner, formal and informal life partners, descendants and ancestors who form an upright line and adoptees and adoptive parents who are in that relationship with the deceased or donor
  2. a legal and natural person to whom the Republic of Croatia or a unit of local and regional self-government donates or provides real estate free of charge for compensation or for other reasons related to the Homeland War
  3. ex-spouse, ex-extramarital partner and ex-formal and informal life partner when  arranging their property relations.


When acquiring real estate, whether by purchase, inheritance or some other way of acquiring, a natural person becomes a taxpayer for real estate transfer tax, except for real estate that are in the VAT system.

The tax rate is 3% of the market value of the property at the time of its acquisition, while the real estate transfer tax basis is the market value of the property at the moment of the tax liability occurrence.


The tax on holiday homes is paid by natural and legal persons once a year, from five to 15 kunas per square meter of usable area in accordance with the decisions of the municipality or city where the holiday home is located. Exemption from this tax is possible if you cannot use the holiday home due to war destruction or natural disasters (e.g. fire), old age and wear and tear, or while the house (was) housed by displaced persons and refugees. Or if the house is rented for tourist purposes or the business is engaged in real estate (Judgment of the Administrative Court)


Since renting holiday homes is not uncommon in the Republic of Croatia, it is necessary to clarify the taxation in relation to the part of the holiday home that is not used by the property owner, but is rented out. It is necessary to distinguish income tax, which is determined in a lump sum on the basis of renting activities, and on holiday homes, which is determined on the basis of ownership of a holiday home. It is determined by a tax decision issued by the competent branch office of the Tax Administration in the form of the product of the number of beds, ie the number of accommodation units in the camp and / or camp rest area and / or Robinson accommodation facility, and the amount of flat tax per bed or per accommodation unit. The amount of the flat tax cannot be less than HRK 150.00 or more than HRK 1,500.00.

When clarifying the topic of taxation of natural persons in the Republic of Croatia, it should be emphasized that Croatian national legislation does not provide for the payment of property tax or the payment of real estate tax for natural persons.