Living in Croatia: tax residency, income tax, real estate and inheritance

A person is considered a Croatian tax resident if they have a permanent or habitual residence in Croatia. The tax authorities also treat as such a person who has neither but is employed in the Croatian civil service and paid accordingly. Permanent residence is defined as a dwelling that you own or have the use of for at least 183 days over one or two calendar years; habitual residence is defined as a stay of at least 183 days over the same period. Residents are taxed on their worldwide income, at two rates set by their municipality. This page is based on the English-language pages of the Croatian tax authorities, which are undated, as well as on the CLEISS (Canadian Tax Information System) and the tax treaty. It does not cover the taxation of dividends, interest, or capital gains under domestic law: we were unable to access this information.

Croatian resident: accommodation available or 183 days of stay

The administration defines two cases. Permanent residence: you own a dwelling in Croatia or have one at your disposal for at least 183 days over one or two calendar years; actual stay is not required. If you have multiple dwellings, your residence follows that of your family. Habitual residence: a continuous or time-bound stay of at least 183 days over one or two calendar years, under conditions demonstrating that you are not merely residing there temporarily. Short interruptions, not exceeding one year, are inconsequential. The administration's website also considers as resident a person without permanent or habitual residence in Croatia who is employed in the Croatian civil service and paid accordingly.

If you have permanent residence in Croatia and abroad, the page generally uses the country of permanent residence of your family, and, failing that, the country where you primarily work. If you are also a resident of France, Article 4 of the convention distinguishes between: permanent home, then center of vital interests. Our page on the convention provides further details on this text.

Worldwide income for the resident, Croatian income for the non-resident

A resident's taxable income includes employment income (wages and pensions), self-employment income, income from property and property rights, capital gains, and other income, whether earned in Croatia or abroad, less their personal allowance. A non-resident is taxed only on income earned in Croatia, less their own allowance.

Two rates, set by the municipality: from 15 % to 33 %

The lower rate applies up to €60,000 per year; the higher rate applies above that amount. Local authorities set their rates within certain limits:

If the local authority does not set its rates on time, the page indicates a lower rate of 20 % and a higher rate of 30 %. The basic personal allowance is €600 per month, increased by €300 per month per dependent family member; for children, the page indicates €300, €420 and €600 per month for the first, second and third children, respectively.

€90,000 of taxable income: a numerical example (fictitious profile)

Situation. A resident, fictitious profile, has €90,000 of annual income subject to the scale, with no dependents.

Issue. He wants to estimate Croatian income tax, without knowing the rate in his municipality.

Strategy. He deducts the basic allowance (€600 per month, or €7,200 per year), applies the lower rate up to €60,000, and the higher rate beyond that. He assumes that the threshold applies to the base amount after the allowance and that all his income falls under this tax bracket.

Result. The base amount is €82,800: €60,000 at the lower rate and €22,800 at the higher rate. At the default rates of 20 % and 30 %, the tax is €18,840. Within the city limits of Zagreb, it ranges from €14,700 (15 % and 25 %) to €21,324 (23 % and 33 %). The pages consulted do not specify which incomes are exempt from this scale. The profile and amounts are fictitious.

Buying and owning property: 3 % transfer tax and a tax per square meter

Property transfer tax is payable by the person acquiring a property in Croatia when the acquisition is exempt from VAT; it amounts to 3,130 of the market value. On a property worth €350,000, it would be €10,500. Owners, whether Croatian or foreign, also pay an annual tax per square meter of usable floor area, set by the local authority between €0.60 and €8.00: for 120 m², this ranges from €72 to €960 per year.

Inheritance and gifts: 4 % and a threshold of €6,700

Inheritance and gift tax applies to individuals who inherit or receive assets free of charge. For cash, receivables, securities, and movable property, the tax base is the value on the date of the tax assessment, less debts and expenses, if the individual value exceeds €6,700; the rate is 4%. The page does not mention any exemptions (spouse, children, parents), time limits, or rules for non-residents. The French administrative list classifies the treaty with Croatia as income tax only: an inheritance is examined under both Croatian and French law.

The convention as seen by the Croatian administration

The Croatian administration's table indicates, for France, an application date of January 1, 2006:

These figures are consistent with articles 10, 11 and 12 of the convention, presented on our dedicated page.

Certificate of tax residence

Taxpayers can obtain a residence certificate, for a specific period or date, with or without an applicable tax treaty, from the relevant regional or local tax office. This page does not describe the procedure or the conditions.

Social security: the Cleiss table for 2024

Cleiss describes, for Croatia, a mandatory first-pillar pension insurance scheme (HZMO Fund) for both employees and the self-employed, and health insurance managed by the Croatian Pension Fund (HZZO). Its contribution schedule is for 2024, not 2026: health insurance is 16.5 times the employer's share; pensions are 20 times the employee's share, divided between 15 times the first pillar and 5 times the second pillar if the employee is affiliated with it. The minimum monthly contribution base is €592.80, and the maximum pension insurance base is €9,360 per month. The self-employed bear both shares, based on a contribution base that is independent of their income. Check the current schedule before making any decisions.

What this page does not cover

Dividends, interest, and capital gains under domestic law; rent received by non-residents; life insurance and local accounts; the residence of EU citizens; the tax on second homes; and 2026 social security contributions. Matters pertaining to France (tax residence, exit tax, declaration of foreign accounts) are covered on our dedicated pages. Have your Croatian legal issues reviewed by a Croatian professional.

What changes depending on your situation

• Your accommodation in Croatia and your days of presence over one or two calendar years.
• Your municipality of residence sets your rates.
• The nature of your income: employment, self-employment, capital, pension.
• Your family composition, which plays a role in the feeling of being down.
• The country where your property is located and the applicable convention.

No results can be announced without reviewing your file.