PUR Income Tax Brackets in Croatia for 2024

The Republic of Croatia (hereafter referred to as ‘Croatia’) provides a business-oriented environment, supported by a dynamic economy and its tax treatment of residents and non-residents is equalized. There are several forms of taxes in Croatia including income tax, capital income tax, withholding tax and value-added tax. The tax system in Croatia is administered by the official tax body, the Tax Administration (Porezna Uprava).

The Income Tax Act (Zakon o porezu na dohodak) provides support and guidance in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these tax tables and the corresponding tax brackets and tax rates, for effective tax planning and to remain compliant with tax laws in Croatia. 

Here you will learn about:

• headline tax rates
• personal income tax (PIT) rates
• corporate income tax (CIT) rates 
• capital gains tax (CGT) rates
• withholding tax rates for residents and non-residents
• value-added tax (VAT) rates

Headline Tax Rates in Croatia

Personal Income Tax (PIT) Brackets in Croatia for 2024

Any individual who derives income is subject to personal income tax (PIT) in Croatia. Employment income includes all forms of remuneration such as salaries, wages and other payments in cash or kind, including pensions paid on the basis of an employment relationship. For details of the applicable income tax threshold, see the table below.

Progressive PIT Rates Set by Local Governments

Progressive tax rates are applicable to the taxable base for an individual’s annual tax liability assessment. These rates will depend on the individual’s place of residence in Croatia. The local government can choose between two progressive tax rates: lower rates and higher rates. The ranges chosen will depend on the size of the municipality or city concerned.

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Croatia for 2024

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Croatia

Withholding Tax Rates for Residents and Non-Residents in Croatia

In general, there are several categories of payments for which withholding tax is levied. This includes fees for the use of copyrights and other intellectual property (IP) rights, foreign performer fees (for artists, entertainers and athletes), and interest. As Croatia is a signatory to certain double taxation treaties (DTTs), tax rates may vary and a taxpayer may benefit from the provisions of these tax treaties.

Value-Added Tax Tax Rates in Croatia

Croatia has introduced VAT grouping with varying VAT rates applying to certain goods and services under the Value-Added Tax Law (Zakon o porezu na dodadnu vrijednost).