Croatia

Social security contributions

The Croatian social security system covers pension and health insurance.

Social security contributions are payable in respect of realised income or in respect of an artificial 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% (15% first pillar payments, 5% second pillar payments). The base for their payment is as follows:

• For total monthly gross salary of up to (and including) EUR 700.00: The base is calculated as the total monthly gross salary reduced for EUR 300.00.
• For total monthly gross salary ranging between EUR 700.01 up to EUR 1,300.00: The base is calculated as the total monthly gross salary reduced for 0.5 x (EUR 1.300,00 - total monthly gross salary).
• For total monthly gross salary exceeding EUR 1,300.00, the base is the total amount of gross salary, which is further capped at the following values for 2024:

• • EUR 9,360.00 monthly cap (applicable for both first and second pillar payments in case of salary).
  • EUR 112,320.00 annual cap (applicable for first pillar payments irrespective of whether the payment is salary or another type of remuneration).

Additionally, employers make social contributions for the following social security benefits:

• Health insurance: 16.5%

The basis for payment of employer’s social security contributions is gross salary, which is not capped.

Employers have certain additional obligations with respect to disabled individuals.

Apart from some exceptions, employers employing 20 and more employees are required to employ a prescribed number of disabled individuals. The number amounts to 3% of the total number of employees.

Employers that do not comply with prescribed requirements are required to pay a monthly fee amounting to 20% of minimal gross salary (minimal gross salary for 2024 amounts to EUR 840.00) for each disabled individual that employer was required to employ.

Consumption taxes

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

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 maximum 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 EUR 6,700 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 administration 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 administration at the rate of 3%. Certain exemptions exist.

Property taxes

There are no property taxes in Croatia.

Excise duties

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 in line with the Games of Chance Act.