Croatia's headline corporate income tax (CIT) rate is 18 (10% under EUR 1 million revenue).
The headline personal income tax (PIT) rate is 10-36 depending on income type/residence.
The standard VAT/GST (or equivalent consumption tax) rate is 25. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
Croatian tax residency is not a single day-count test. An individual is resident if they have a permanent home in Croatia, own or have real estate available for an uninterrupted period of 183+ days across one or two calendar years (actual physical presence in the property is not required), are physically present in Croatia for 183+ days across one or two consecutive calendar years, or have their center of vital interests (including family ties) in Croatia. Residents are taxed on worldwide income; non-residents only on Croatia-source income.
Croatia's CFC rule (effective since January 1, 2019) applies to any foreign entity whose income is not taxed in its home jurisdiction, where a Croatian taxpayer - alone or with related parties - directly or indirectly holds more than 50% of voting rights, capital, or profit entitlement.
Croatia applies two layered interest restrictions. First, a 4:1 safe-harbor thin capitalization rule: interest on loans from a shareholder or member holding at least 25% of shares/voting power (including guaranteed third-party loans and related-party loans) is non-deductible on the portion of debt exceeding four times that shareholder's capital/voting stake; loans from financial institutions are exempt. Related-party interest rates must also fall within a Ministry of Finance-published safe-harbor rate (2.65% for 2026) or be independently justified under transfer pricing/arm's-length analysis. Second, an ATAD-based rule caps deductible interest at the higher of 30% of EBITDA or EUR 3 million.
Croatia maintains double tax treaties with more than 60-65 countries. Two significant treaty developments are in progress: a US-Croatia treaty signed December 7, 2022 remains not yet in force pending US Senate ratification (a protocol addressing the Double Tax Relief article was signed April 28, 2026 to help advance it); and treaties with Australia and New Zealand, signed November 2025, were ratified by Croatia in May 2026 and await entry into force upon mutual notification exchange.