Page 17 - CEE Tax Guide 2025

types of income, e.g. dividends, capital gains, lease
VAT options in Croatia Applicable / limits
of real estate, etc. The payment of occasional awards
Distance selling Threshold for exemption is up to an amount not exceeding EUR 700 (e.g.
EUR 10,000/year. OSS applicable.
Christmas bonus, etc.) and payment of a premium
Call-off stock performance award (e.g. bonuses) up to EUR 1,200
VAT group registration No per employee per annum is deemed as non-taxable.
Also, it should be noted that there are many other
Cash accounting – yearly EUR 2,000,000/year non-taxable receipts (employee meal costs, rental
amount in EUR (approx.)
costs, etc.). Tax regulations prescribe a non-
Import VAT deferment – for all Croatian VAT payers taxable flat-rate compensation to cover the costs
with the right to full input
VAT deduction. of employees working from home to an amount
not exceeding EUR 4 per day working from home,
Local reverse charge Available
or EUR 70 per month. Basic personal allowance
Option for taxation amounts to EUR 600.
letting of real estate No Active incomes fall under the scope of the SSC
supply of used real estate system: individual pension social contributions
equal 20% (employee contribution) and health and
VAT registration EUR 60,000/year
threshold unemployment contributions of 16.5% represent
employer contributions. As from January 1, 2025,
employers will no longer have a five-year exemption
form. As from January 1, 2025, Entrepreneurs are from paying health insurance contributions for
obliged to register for VAT purposes during the employees under 30. Instead, a one-year exemption
calendar year in which the total value of supplies will apply only to workers starting their first job
exceeds a threshold of EUR 60,000.
(signing a permanent employment contract for
Excise duties, special tax on motor vehicles, special the first time). Passive incomes are generally only
tax on coffee and non-alcoholic beverages. subject to taxes.

Personal income tax /
Social security system

Units of local and regional self-government apply
tax rates within the following range, depending
on the given local and regional self-government
unit: lower rate: 15%–23% (monthly tax base
up to EUR 5,000 /annual tax base up to EUR
60,000) and higher rate: 25%–33% (monthly tax
base above EUR 5,000 /annual tax base above EUR
60,000). The 12% rate is withheld from certain

Wage related taxes in Croatia Minimum wage Average wage in private sector
Exchange rate BGN/EUR 1.96 in EUR in EUR
970 116.00% 1,900 621,200
Total wage cost 1,130 116.00% 2,214 117.00%
Employer’s contribution 160 16.50% 314 16.50%
Gross salary 970 100.00% 1,900 100.00%
Employees’ contributions 215 22.20% 592 31.15%

Net salary 755 78.00% 1,308 69.00%

Pere Mioč
Partner – Tax Services
Phone: +385 (0) 99 736 8746
E-mail: pere.mioc@forvismazars.com

Central and Eastern European tax guide 2025 Forvis Mazars 17