Taxes in Croatia
The Republic of Croatia is a mysterious and attractive country located partly on the Balkan Peninsula and in southern Europe. The population is 4 people, the largest city in the state and the capital is Zagreb.
Croatia has a steadily developing, sustainable economy, the main industries of which are:
- shipbuilding;
- mechanical engineering;
- industry (food, chemical, woodworking);
- pharmaceuticals;
- tourism.
In recent years, many businessmen have been attracted to Croatia as a territory for developing their own commercial area. There are plenty of reasons for the jurisdiction’s popularity:
- stable economic and political sectors;
- the opportunity to do business in free economic zones;
- availability of various tax benefits.
The E-COMMERCE BROKER Company is ready to offer you services for opening a company in Croatia. Our specialists will undertake all obligations for collecting documents and conducting registration procedures, which will take as little time as possible. We also offer register a company in Croatia remotely, by giving us a power of attorney.
How is the Croatian tax system structured?
Croatian tax system First of all, it differs in that it does not have certain types of taxes: on property, dividends, capital gains. Tax revenues account for almost 27% of the country's GDP.
Tax rates for businesses in the jurisdiction are quite high, but tend to vary depending on the specific location. Basic Croatian taxes:
- Corporate tax.
All commercial and non-profit organizations operating in Croatia and receiving profit from it must pay income tax to the state treasury.
This applies to both the global income of residents of the country and the income of non-residents received in the territory of the jurisdiction. The standard rate is 18%. For those companies whose annual income does not exceed 402 Euros, the income tax rate is 500%.
Capital gains are included in the corporate tax base and are calculated at the standard rate. For companies in Croatia, there are special tax incentives, under which the percentage of income tax can be reduced by 50 or 100%.
The duration of the grace period is 5-10 years. Enterprises operating in the following areas can count on benefits:
- production;
- IT technologies;
- services in the service sector.
- VAT.
The standard interest rate for value added tax in Croatia is 25%. For some goods and services, preferential interest rates of 13 and 5% are applied for newspapers, magazines, bread, milk, medicines, and books.
- Tax at source.
If dividends from the activities of an enterprise are paid to a non-resident, they are taxed at a rate of 12%; for royalties and interest, a rate of 15% applies.
- Excise taxes apply to tobacco, alcoholic beverages, coffee, petroleum products and luxury goods.
Help from professionals for business from “E-COMMERCE BROKER”
Quite often, Croatia, with its stable economy, is chosen as a territory for opening and doing business. If you decide to start developing your commercial area in this jurisdiction, then our company will help you with this.
We will prepare all the documentation necessary for quick and successful registration, as well as we will open a European bank account, on which you will begin to make a profit. With our effective financial solutions you can successfully develop your business in Croatia!
