Moving to Croatia has become a top choice for expats seeking a Mediterranean lifestyle with a lower cost of living, stunning coastal towns, and a relaxed pace of life.
In this guide, we’ll walk you through everything you need to know about relocating to Croatia from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Croatia follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
if you spend more than 183 days in Croatia during any 12 month period.
if you own real estate in Croatia for more than 182 days during any 12 month period unless you own real estate overseas.
Providing that you hold a valid digital nomad visa, any income connected to your status as a digital nomad such as employment or self-employment income will be exempt from income tax. Croatia can be a very tax efficient place to live in and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
Exempt from Croatian taxation.
Applied for one year.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in Croatia, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Croatia has 70 double taxation agreements signed.
