Croatia - Tax Guide for Freelance Contractors

Tax residents in Croatia:         are liable to pay Croatian tax on their worldwide income,
Non tax residents in Croatia:  are liable to pay tax on Croatian-source income.

Individuals will be regarded as tax residents:

• if they have a permanent or temporary place of residence,
• if they are deemed to have a place of permanent residency,
• if they own a place of abode, or have one at their disposal for an uninterrupted period of 183 days.

It is not necessary for the individual to stay in the place of abode to meet the 183 day rule.

Married persons are taxed separately.

Taxable income includes:

• income from employment,
• self-employment,
• property and proprietary rights,
• capital insurance,
• other income. 

Certain deductions are permissible for 2010 including:

• basic personal allowance of HRK 1’800.00 per month plus a further allowance for each dependent family member,
• maximum HRK 12’000 per year for personal medical expenses, for premiums for life insurances, voluntary pension insurance, additional or private health insurance and for the improvement of housing conditions,
• mandatory social security contributions (i.e. employee’s pension contributions).

Income tax rates for 2010:

• 15.00% up to HRK 43’200 per annum,
• 25.00% from HRK 43’200 up to HRK 108’000 per annum,
• 35.00% from HRK 108’000 up to HKR 302’400 per annum,
• 45.00% over HRK 302’400 per annum.

A new special tax has been introduced from August 1st, 2009 on salary, pension and other income.

• 2.00% for net income exceeding HRK 3'001,
• 4.00% for net income exceeding HRK 6'001.

Municipal surtax on income tax

Municipalities apply a surtax on the income tax rates between 10% and 30% depending on the number of inhabitants. Zagreb applies the highest surtax.

Filing date:

Tax returns must be filed by the 28th of February following the tax year.