Hotel Globo Split

KPMG’s annual income tax survey, has ranked Croatia on 2 places (after Slovenia), in the category, effective income tax and social security rates on 100.000 USD gross income, in the category for 300.000 USD gross income Croatia ended up on third place. 

Since the survey was conducted Croatia has added a crises tax on income, so that Croatia currently most properly is the world champion in income tax and social security contributions. 

The tax and social security rate is currently around 55% for a 100.000 USD income and 56-57% for a 300.000 USD Income. 

The tax system in Croatia is similar to the German tax system, where you pay a percent of your salary as income tax and additional you pay a percent for public health insurance, Pension and unemployment insurance. The KPMP survey includes all 4 elements, so that the effective tax rate is comparable with e.g. the Scandinavian countries, where all 4 elements are included in the income tax. 

Currently there have been no statement from the government, if the plan to defend the position as world income tax leader also in the years to come! 

Examples of Other tax in Croatia: 

Land tax:  none or very small amount, but when you sell real estate there is a 5% sales tax. 

Company tax:  20%, you have special rural zones in the country where companies can get up to 10 years tax free period. 

Dividend tax: 0 % – a few percent might apply do to crises tax. 

VAT:  has as a part of the crises tax, been raised from 22% to 23%

Tourist tax:  The VAT for tourist industry is 10%, for each night tourist are staying, a tourist tax of between 50 cent and 1 Euro has to be paid, this apply to guest staying in Private accommodation, Hotel, campsites, charter boat or any other type of accommodation.

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