Social security contributions
The Croatian social security system covers pension, health, and unemployment insurance.
Social security contributions are payable in respect of realised income or in respect of an artificial basis (i.e. on a lump-sum basis), depending on the status the individual has in the social security system as well as other relevant circumstances.
In the case of dependently employed individuals, social security charges are borne by the employee and employer.
Employee's social security contributions are pension contributions levied at the rate of 20% (I. Pillar payments: 20% or 15% if individual is also subject to II. Pillar payments; II. Pillar payments: 5% if applicable). The basis for their payment is gross salary, which is capped at the following values for 2017:
- HRK 46,434 monthly cap (applicable for both I. and II. Pillar payments in case of salary).
- HRK 557,208 annual cap (applicable for I. Pillar payments irrespective of whether the payment is salary or other receipts).
Additionally, employers make social contributions at the rate of 17.2% for the following social security benefits:
- Health insurance: 15%.
- Health insurance for health protection while at work: 0.5%.
- Unemployment insurance: 1.7%.
The basis for payment of employer’s social security contributions is gross salary, which is not capped.
Minimum basis for calculation of social contribution in 2017 is set at HRK 2,940.82.
Employment of disabled individuals
Employers have certain additional obligations with respect to disabled individuals.
Apart from some exceptions, employers employing 20 and more employees are obligated to employ a prescribed number of disabled individuals. The number depends on the total number of employees and nature of activities the employer carries out but it cannot be lower than 2% or higher than 6% from the total number of employees.
Employers that do not comply with prescribed requirements are obligated to pay a monthly fee amounting to 30% of minimal salary (minimum salary for 2017 amounts to HRK 3,276) for each disabled individual that employer was due to employ.
Value-added tax (VAT)
The general VAT rate is 25%. See the Other taxes section in the Corporate tax summary for more information.
Consumption tax is payable on consumption of spirits, natural vines, special vines, beers, and non-alcoholic beverages in catering facilities.
A taxpayer is a legal entity or natural person providing catering services.
Consumption tax is levied at the rate of 3%.
Net wealth/worth taxes
There are no net wealth/worth taxes in Croatia.
Inheritance and gift tax
Inheritance and gift tax is payable on cash, monetary claims, and securities, as well as movable property if individual market value of movable property exceeds HRK 50,000 on the day of determining the tax liability.
A taxpayer is a legal entity or natural person who inherits or receives a gift in Croatia.
Tax is determined by the tax authorities at the rate of 4%. Certain exemptions exist.
Real estate transfer tax (RETT)
The transfer of real estate is subject to RETT.
The term 'transfer' means any transfer of ownership, including the sale, exchange giving free of charge, transfer based on inheritance, transfer in case of the liquidation of a company, and any other means of real estate transfer. Real estate includes agricultural, construction and other land, as well as residential, commercial, and other buildings.
Real estate subject to VAT is not subject to RETT.
This type of tax is assessed by the tax authorities at the rate of 4%. Certain exemptions exist.
There are no property taxes in Croatia (apart from the below mentioned tax on holiday houses and tax on road motor vehicles and vessels). Please note that the Croatian government plans to introduce tax on real estate in the near future.
There are a number of excise duties and special taxes levied on specific products. They are levied at a fixed amount and are payable by the producer or importer. See the Other taxes section in the Corporate tax summary for more information.
Other non-income taxes
Individuals may also become subject to the following:
- Special taxes on motor vehicles.
- Special tax on coffee and non-alcoholic beverages.
- Tax on road motor vehicles.
- Tax on vessels.
- Tax on coin operated machines for games for amusement.
- Tax on holiday houses.
- Tax on the use of public land.
- Tax according to the Games of Chance Act.