Croatia, a parliamentary republic in Central Europe that sits along the Adriatic Sea, is bordered by Slovenia to the north, Hungary and Serbia to the east, and Bosnia and Herzegovina to the south. Croatia is divided into 20 counties and the city of Zagreb, which is also the capital of Croatia. The official language of Croatia is Croatian, and the currency is the kuna (HRK).
Croatia was part of the Austro-Hungarian Empire until the end of World War I. In 1918, the Croats, Serbs, and Slovenes formed a kingdom known after 1929 as Yugoslavia. Following World War II, Yugoslavia became a federal social independent state. Croatia declared its independence from Yugoslavia in 1991.
On 1 July 2013, Croatia became the 28th European Union (EU) member state.
The annual real gross domestic product (GDP) growth rate in the first three quarters of 2017 increased by 3.3% in comparison to the same period in 2016. This was the result of the increased export of goods and services and increase of domestic household consumption.
The labour market continued to recover. In the fourth quarter of 2017, the employment rate rose by 0.8% compared to the third quarter. A slight increase of the average gross wage was recorded, while growth in real earnings (i.e. the growth in purchasing power) was a bit lower due to the increase of consumer prices.
The average annual inflation in 2016 was -1.1%. However, during 2017, positive movement of inflation was recorded, and in December 2017 inflation was 1.4%. The annual consumer price inflation rate in November 2017 was higher by 1.4% when compared to November 2016.
The client base of PwC Croatia includes some of the largest Croatian and multinational companies in Croatia. We have approximately 160 professionals in Croatia who are focused on providing innovative advice and solutions. Our teams of local and expatriate professionals have the skills and the experience in all areas of taxation, corporate and personal, direct and indirect, to help clients grow and develop.