Accounting and legal

Accounting and tax

    tax obligations for Croatia companies

  1. Croatia’s corporate tax burden is levied at a flat rate of 20%. Capital gains take part in the corporate income and thus, have the same rate;
  2. Annual tax returns must be filed by February following the standard tax year. Failure to do so will result in penalty rate of 12% on any outstanding amounts;
  3. The standard Value Added Tax (VAT) in Croatia is flat 25%, with reduced rates of 13% and 5% on certain goods;
  4. Losses may be carried forward for up to five years. However, carryback of losses in Croatia is not permitted;
  5. Dividends payments to nonresidents suffer 12% withholding tax, unless the rate is reduced by a double taxation treaty (DTA);
  6. Both Interest, royalties and technical service fee payments to non-resident companies are subject to flat 15% withholding tax, unless reduced by a double taxation treaty (DTA);
  7. Social security contributions of flat 20% are borne by the Croatian employee, withheld from the employee of their employment related income;
  8. From 1st of January 2015 saving accounts will incur personal tax rate of flat 12%;
  9. International Accounting standards (IAS) are applied to public listed companies, while SME’s are covered by the Croatian Accounting Standards;
  10. Croatia has signed double taxation avoidance agreements with 57 countries including: South Korea, Singapore, New Zealand, Oman and Chile;
  11. Healy Consultants will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis;
  12. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Legal and compliance

Company regulation

  • Croatia’s Business Register allows both residents and non-residents to view i) specific company’s name, address and special registration number (OIB); ii) names and contact details of the directors; iii) the main corporate bank account number;
  • The minimum share capital requirements in Croatia are i) €2,500 for a limited liability company and ii) €25,000 for a joint stock company;
  • All business types available in Croatia must maintain a registered office address in the country at all times;
  • All Croatian joint stock companies require mandatory annual audit by a certified accountant.

Staff regulations

  • In accordance with Croatia Labour Act (No. 758/95) trial periods in Croatia may not exceed six month period;
  • All employment contracts must be translated into Croatian. Non Croatia speaking employees must also be provided with a contract copy in a language they understand;
  • The minimum wage in Croatia is fixed at €398 per month;
  • The standard work week typically is fixed at maximum 42 hours of work, however in case of irregular increase of work amounts, the total week hours can reach up to 52;
  • The standard working days are Monday to Friday with maximum 6 working days per week;
  • All employees are entitled to
    • Up to 20 days of paid annual leave;
    • 13 days of national holidays and;
    • 42 days of sick leave;
    • 58 weeks of paid maternity leave;

  • Employers may suspend their employees’ employment contract in case of i) extremely grave violation of an obligation and ii) serious breach of basic employee duties (drinking alcohol at work and leaving the workplace without justifiable cause);
  • All claims resulting in labour conflicts are handled by specialized Labour courts, which are separate organizational units of district courts;
  • In accordance with Croatia Labour Act (No. 758/95) all employees require a minimum termination notice of:
    • 7 days during probation periods;
    • two weeks if employed for less than 6 months;
    • three months if employed for more than 2 years.

Other business regulations

Contact us

For additional information on our company registration services in Croatia, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar