The Republic of Croatia is located at the crossroads of Central and Southeastern Europe. Croatia borders Bosnia and Herzegovina, Hungary, Montenegro, Serbia and Slovenia and has access to the Adriatic Sea. Croatia has a territory of 56,594 square kilometers. The capital city of Croatia is Zagreb, the largest city and the location of key government institutions. Croatia has a population of 3,8 million people.
Corporate taxation, VAT taxation, Personal taxation
- Corporate income tax - Standard tax rate 18%. A lower corporate income tax rate of 10% applies if annual revenue does not exceed HRK 7,500,000. Tax returns are filed on an annual basis. Advance income tax payments are made on a monthly basis
- Dividend withholding tax - 10%
- Interest withholding tax - 15%
- Royalties withholding tax - 15%
- Capital gains tax - Standard tax rate 18% or a lower tax rate of 10%
- VAT - Standard tax rate 25% or reduced rates from 5% up to 13% or tax exempt. Tax returns are filed on a monthly or a quarterly basis
- Personal income tax - from 20% up to 30%.
The following are the most common types of companies to incorporate a company in Croatia as:
- Limited liability company (Društvo sa ograničenom odgovornošću - d.o.o.)
- Simplified limited company (Jednostavno društvo s ograničenom odgovornošću - j.d.o.o.)
- Public limited company (Dioničko društvo - d.d.)
- General partnership (Javno trgovačko društvo - JTD)
- Limited partnership (Komanditno društvo - KD)
- Economic interest association (Gospodarsko interesno udruženje)
- Branch office (Podružnica).
Official currency of Croatia is Croatian kuna (HRK).
Croatia has a high-income service based market economy. Tourism is one of the largest contributors to the GDP (almost 20%). Croatia is developing floating liquefied natural gas regasification terminal of the island of Krk and its green energy - wind, solar and geothermal energy. Apart from this Croatia is developing its own automotive industry contributing to R&D in this area.
The GDP of Croatia grew by 10.2% in 2021 and amounted to USD 67.7 billion. Tertiary sector makes up almost 59% of the GDP of the country, followed by industry sector at 20.5%, agriculture at 3%.
In terms of foreign trade the largest exports of the country are petroleum oils, medical blood, electrical transformers, static converters and inductors, wood, cars, parts and accessories of motor vehicles, insulated wire, cables, maize.
Imports of Croatia consist of energy, petroleum oils, natural gas, cars and vehicles, transmission apparatus, electric conductors, consumer goods, unwrought aluminium.
Primary trading partners of Croatia are Germany, Italy, Slovenia, Bosnia and Herzegovina, Hungary, Austria, Serbia, USA, France, Romania, China, Poland, Netherlands and Belgium.