For the purpose of taxation, the PIT Act distinguishes between resident and non-resident taxpayers.
Taxpayers are deemed resident taxpayers where they:
- have real estate in their ownership or at their disposal for an uninterrupted period of at least 183 days in one or two calendar years in Croatia (stay in the real estate is not a determining factor), or
- are physically present in Croatia for at least 183 days in one or two calendar years. Short interruptions of stay, up to one year, are not decisive.
Individuals who do not have real estate in their ownership or at their disposal nor are physically present for at least 183 days in one or two calendar years in Croatia are regarded as non-resident taxpayers.
If a taxpayer has real estate in one’s ownership or at one’s disposal in Croatia and abroad, one is considered a resident taxpayer in the country in which one's family resides; or if one has no family or place of one’s residence cannot be determined, one is deemed a resident taxpayer in the country from which one usually goes to work to or in which one is predominantly physically present. In case the other country does not consider such an individual as its resident taxpayer, one is deemed a Croatian resident taxpayer.
Where appropriate, provisions of the applicable Double Tax Treaty (DTT) are consulted for determining one's tax residence status for DTT purposes.