Economy and Business

Entrepreneurial freedom and free market are the foundations of the Croatian economy. The republic of Croatia guarantees the same legal position in the market to all entrepreneurs, both domestic and foreign. The Republic of Croatia also guarantees to foreign investors that they may take the profits and invested capital out of the country at any time. The Croatian tax system is comparable to the tax systems of EU member countries and is based on a number of direct and indirect taxes.

Croatia honours all double taxation agreements made between former Yugoslavia and other countries and has herself concluded numerous agreements on the avoidance of double taxation.

The current Croatian tax system includes the following taxes:

  • corporate income tax;
  • personal income tax;
  • value-added tax;
  • special taxes (excise duties) on certain products (oil and refined petroleum products, tobacco products, alcoholic beverages, non-alcoholic beverages, beer, coffee, automobiles and other motor vehicles, vessels and aircraft, luxury products),
  • tax on automobile liability and comprehensive road vehicle insurance premiums;
  • real estate transfer tax;
  • levies on the organisation of games of chance;
  • county, municipal and town/city taxes as part of regional and local self-governments’ revenues.
Croatian Chamber of Economy