Taxation in Croatia

Taxes in Croatia are levied by both the central and the regional governments. Tax revenue in Croatia stood at 37.8% of GDP in 2017. The most important revenue sources are income taxes, social security contributions, corporate tax and the value added tax, which are all applied on the national level.

Income earned in Croatia is subject to a progressive income tax, of two different brackets.

In addition to tax, local government can collect surtax depending on the residence of taxpayer.

Employment Income is subject to social security, at a rate of 16.5% for the employer and 20% for the employee.

Salary calculator: https://www.moj-posao.net/Salary-Calculator/

Corporate tax depends on the revenue the company earns.

Certain expenses are tax deductible for businesses including personal means of transportation. Resident businesses are taxed on worldwide income, while foreign companies in Croatia are taxed on profits earned in Croatia.