Last reviewed - 30 June 2021

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 and Montenegro 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.

According to the first estimate for 2020, the gross domestic product (hereinafter: “GDP”) in real terms decreased by 8.4% as compared to 2019.  Such GDP trends were a consequence of the COVID-19 pandemic, and the decline in domestic and foreign demand, but also the necessary closure of a large part of the economy. The largest contribution to the GDP volume decrease was the real downfall in the value of exports of services by 47.1% on annual level. Such a decline in exports of services was the result of far weaker performance in tourism. At the same time, commodity exports were reduced.

Movement of trade of goods in 2020 reflects the decline in domestic and foreign demand affected by the pandemic. In the first ten months, the value of commodity exports in HRK decreased by 3.2%, and imports by 9.3%. As a result, the trade deficit decreased by 18.4% on annual level. The value of exports of the manufacturing industry decreased by 7.3%, with the largest decline recorded in petroleum products, ships and other vessels and motor vehicles and their parts, but at the same time there was a significant increase in exports of mining and quarrying. The value of imports decreased significantly in a number of products, most notably in motor vehicles and petroleum products. On the other hand, the largest increase of as much as 24.0% was recorded in import of pharmaceutical products.

The pandemic caused by the coronavirus had a strong negative impact on the state budget movement in 2020. In the first eleven months, budget revenues decreased by 5.8% on the annual level, while the tax revenues decreased by 11.4%. Among few revenues that recorded growth were aid revenues which grew by 22.2%, most of which related to EU funds. Under the significant impact of costs for economic assistance measures, expenditures were increased by 11.9% compared to the previous year, with the largest increase in costs for aid and subsidies and benefits to citizens and households. Given such trends, at the beginning of November, a second rebalance of the budget was performed, which increased both revenues and expenditures compared to the previous rebalance. A significant part of the new expenditures in the amount of HRK 1.54 billion was allocated for a debt repayment to wholesalers and pharmacies, and an additional HRK 380 million is planned for job preservation aid. According to the new amended budget, the central budget deficit in 2020 should amount to HRK 24.8 billion, and the general government deficit to HRK 29.5 billion or 8.0% of GDP, in contrast to last year’s surplus of 0.4% of GDP.

Furthermore, relatively favourable developments in the labour market continued at the end of 2020 after exceptionally unfavourable developments in the period from March to May. The number of employed persons increased in October 2020, with similar dynamics continuing through November. In December, however, this growth decelerated. At the end of December 2020, the number of employed persons was near the level registered in 2019, after attaining 2018 levels in the period from April to September. On a quarterly basis, employment in the fourth quarter of 2020 was 2% higher than the average in the previous three months, with the greatest increase recorded in the accommodation and food service industry.

The average annual inflation rate of consumer prices decelerated to 0.1% in the whole of 2020 (from 0.8% in 2019) which was, to the largest extent, a consequence of the decrease in the annual rate of energy prices change.  In December 2020, as compared to November 2020, the prices of goods and services for personal consumption, measured by the consumer price index, decreased by 0.6% on average. They decreased by 0.7% at the annual level compared to December 2019, while on the annual average they increased by 0.1%.

The average annual middle exchange rate of HRK against EUR was 7.5330 EUR / HRK in 2020. The average annual middle exchange rate of HRK against USD amounted to 6.6107 USD / HRK, which was lower compared to 2019 as a consequence of the weakening of USD against EUR. On the other hand, the average annual middle exchange rate of HRK against CHF was higher than in 2019, which reflects the combined effect of the weakening of HRK against EUR and the weakening of EUR against CHF and amounted to 7.0398 CHF / HRK.

Some of the main macroeconomic indicators in the period from 2016 to 2020 are presented in the figure below.

Macroeconomic indicators






GDP (in mill. HRK, current prices)






Annual increase / decrease rate of GDP (%)






Annual average inflation rate (%)






Foreign exchange rate 31 December (HRK= 1 EUR)






Registered unemployment rate (%)






The client base of PwC Croatia includes some of the largest Croatian and multinational companies in Croatia. We have more than 200 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.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

18 (10% for companies realising less than HRK 7.5 million in revenues)

Corporate income tax (CIT) due dates
CIT return due date

Within four months of company's year end.

CIT final payment due date

Within four months of company's year end.

CIT estimated payment due dates

Monthly instalments paid by the end of the month for the previous month.

Personal income tax (PIT) rates
Headline PIT rate (%)

30% increased for municipal tax (levied at the rates ranging from 0% to 18%, depending on taxpayer's place of residence).

Personal income tax (PIT) due dates
PIT return due date

End of January or end of February, depending on taxpayer's circumstances.

PIT final payment due date

Generally, 15 days from the day of tax assessment receipt.

PIT estimated payment due dates

Dependent on the income type and taxpayer's circumstances.

Value-added tax (VAT) rates
Standard VAT rate (%)


Withholding tax (WHT) rates
WHT rates (%) (Dividends/Interest/Royalties)

Resident: 0 / 0 / 0 (corporate);

10 / 10 / 20 (individuals);

Non-resident: 12 / 15 / 15 (corporate);

10 / 10 / 20 (individuals);

For further information, see the Income determination section in the Individual summary and the Withholding taxes section in the Corporate summary.

Capital gains tax (CGT) rates
Headline corporate capital gains tax rate (%)

Capital gains are subject to the normal CIT rate.

Headline individual capital gains tax rate (%)

10% increased for municipal tax (levied at the rates ranging from 0% to 18%, depending on taxpayer's place of residence).

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)


Inheritance and gift tax rates
Headline inheritance tax rate (%)


Headline gift tax rate (%)


NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.