About Croatia
Croatia is an EU member state at the crossroads of Central Europe and the Mediterranean, offering competitive labor costs, EU market access, and a strategic location along key trade corridors.
Business-Friendly Environment
Croatia provides a convenient business environment, with corporate income tax rates of 10% and 18% depending on the company's income. Enterprises with annual income below 1 million euros are subject to a 10% tax rate, while those with annual income equal to or exceeding 1 million euros are subject to an 18% tax rate.
Taxation and Incentives
Croatia offers a range of tax reductions and incentives, including tax benefits for businesses of different scales, such as micro, small and medium-sized enterprises, and large enterprises. Additionally, there are subsidies for creating new employment opportunities and incentives for education and training.
Investment Promotion Measures
Croatia provides incentive measures for investment projects under the Investment Promotion Act, covering activities in manufacturing and processing, development and innovation, business support activities, and high value-added services. These incentives can be utilized by enterprises registered in Croatia that invest a certain amount in fixed assets.
Advanced Tax System
Croatia has a mature tax system, including various taxes such as value-added tax, corporate income tax, and personal income tax. The standard VAT rate is 25%, and reduced rates of 13% and 5%, as well as a 0% rate for specific goods and services, are also available.
General CIT Rate
18 (10% of companies with income less than 1,000,000.00 euros)
CIT Return Due Date
Within the last four months of the year at the company.
CIT Payment Due Date
As of the last day of CIT application deadline.
CIT Estimated Payment Due Date
Pay in monthly installments before the end of last month.
General VAT Rate
25
General Capital Gain Tax Rate
Capital gains are subject to the normal corporate income tax rate constraints.
Composite Effective Average Tax Rate
16.15%
Composite Effective Marginal Tax Rate
6.93%
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