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Generic Tax Name Personal income tax
Tax name in the national language Porez na dohodak
Tax name in English Personal income tax
Member State HR-Croatia
Tax in force since 1994
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco

Social security contribution Employers
Legal base

Personal income tax act (Zakon o porezu na dohodak), Official gazzete of the Republic of Croatia no. 177/04, 73/08, 80/10, 114/11, 22/12, 144/12, 120/13 - Decision CCRC, 125/13, 148/13 and 143/14

Who sets
The tax rate is set by

The tax base is set by

The reliefs are set by


Geographical Scope

Territory of the Republic of Croatia

Domestic-source income of non-residents is Taxed
Not Taxed

Employment incomes of married couples are Taxed jointly
Taxed separately


An individual - resident of Croatia is taxed on worldwide income and an individual - non-resident is taxed on income with source in Croatia.

Tax object and basis of assessment
As general rule, taxable income under personal income tax includes


The taxable income shall include the following:

  1. employment income,
  2. self-employment income,
  3. income from property and property rights,
  4. income from capital,
  5. income from insurance,

other income.

Income considered Domestic income
Worldwide income (subject to double-tax relief)

Benefits in kind
The following benefits in kind are usually (partially or fully) taxable


Deductions, Allowances, Credits, Exemptions
Deduction for professional expenses.
The deduction is:


The self-employment income acquired by a resident in Croatia and abroad or by a non-resident in Croatia, shall be reduced by:

  1. the amount of salaries of the newly employed persons,
  2. the amount of state grants for education and training and apprenticeship for crafts and trades occupations pursuant to special regulations,
  3. the amount of expenses for research and development,
  4. and the loss carried forward, after the reduction referred to in items 1, 2, and 3, incurred by a resident, within his/her self-employment, in Croatia and abroad or by a non-resident in Croatia.

Deductions from the tax base
The following items are usually (partially or fully) deductible


The basic yearly allowance for an individual amounts to: 31,200.00  EUR/National currency
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child 15,600.00  EUR/National currency
Additional allowance for 2nd child 21,840.00  EUR/National currency
Additional allowance for 3rd child 31,200.00  EUR/National currency
Additional allowance for additional child 43,680.00  EUR/National currency
Additional allowance for old age dependents

Residents who are eligible to pension shall be entitled to the personal deduction in the amount of total pension acquired in the tax period ranging from minimum HRK 2,600 to maximum HRK 3,800 on monthly basis.

The additional allowance for dependent members of tax payer´s immediate families and ex-spouses to whom they pay alimonies amounts to 15,600 HRK yearly.

For a fifth child the additional allowance is 59,280 HRK, and for each subsequent child the basic personal allowance multiplier shall be increased progressively, by 0.6, 0.7, 0.8, 0.9, 1.0, etc. more than the multiplier of basic personal allowance for the preceding child.

The additional allowance for a taxpayer, each dependent member of his/her immediate family and each child, if they are disabled, amounts to 9,360 HRK yearly.

The additional allowance for a taxpayer, each dependent member of his/her immediate family and each child, if these persons' disability degree of 100% have been determined on the one basis by ruling, pursuant to special regulations, and/or if they are entitled to care and assistance provided by other persons on account of disability, pursuant to special regulations, amounts to 31,200 HRK yearly. 

The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents
There are tax credits for:


Losses can be
Carried-forward for Indefinite
Carried-back for Indefinite
Transferred to spouse or partner

In respect of the self-employment activities.

The following income is exempted from income tax


Scholarships up to the certain amount are exempted from income tax. 

Receipts acquired on the basis of item, liability, life and property insurance shall not be deemed income. Receipts deriving from life insurance and voluntary pension insurance shall be deemed income if the premiums for this insurance are recognised as expenses for taxation purposes.

Rate(s) Structure
The following personal income tax rates apply to aggregate annual income (allowances not included)
Bracket 1 From  0.00  EUR/Natcur
To  26,400.00  EUR/Natcur
Rate: 12.00 %
Bracket 2 From  26,400.00  EUR/Natcur
To  158,400.00  EUR/Natcur
Rate: 25.00 %
Bracket 3 From  158,400.00  EUR/Natcur
To   EUR/Natcur
Rate: 40.00 %

A taxpayer shall be obliged to submit the annual tax return if he/she, during the tax period, acquired an income from:

  1. employment from two or more employers concurrently during the same month of the taxation period, and/or
  2. a self-employment activity, and/or
  3. directly from abroad while the income tax advances are not paid in Croatia and/or are paid in Croatia in the amount less than the amount which would be calculated pursuant to the provisions of Personal Income Tax Act (only for residents) unless the Republic of Croatia, in accordance with a double taxation treaty, exempts that income from taxation, and or
  4. employment as a seaman on board in international water and

     in other prescribed circumstances. 

A taxpayer shall be obliged to declare in his/her annual tax return the income subject to annual tax return as well as income from employment.

A taxpayer who submits the annual tax return voluntary (for the purpose of exercising some prescribed rights), shall report in his/her tax return the total taxable income acquired in the tax period.

Regional taxes
Regional taxes are (rate in capital region) A lump-sum amount:
A percentage of income:
A tax surcharge:

Local/municipal taxes
Local taxes are (rate in capital city) A lump-sum amount:
A percentage of income:
A tax surcharge: 18.0 %

The income tax shall be increased by the surtax on income tax imposed by units of local self-government pursuant to special legislation (from 0 to 18%).

Taxable persons are those liable to pay income tax who have a domicile or a common residence in the area of the city/municipality that has prescribed the obligation to pay the tax.

The taxable base is the amount of income tax.

The maximum tax rates that can be imposed are:

  1. a municipality at the rate of up to 10%
  2. a city with a population below 30,000 at a rate of up to 12%
  3. a city with a population over 30,000 at a rate of up to 15%
  4. the city of Zagreb at a rate of up to 18%

Special surcharges
There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:

Separate taxation
Separate taxation applies to the following items: Employment income
Income from business or self-employed activities
Income from sport and entertainment activities
Benefits in kind (company car, meal cheques, etc)
Pension income
Owner-occupied immovable property
Dividends 12.0 %
Interests from government bonds
Interests from corporate bonds
Interests from special saving accounts 12.0 %
Interests from deposits 12.0 %
Royalties 25.0 %
Income from renting immovable property 12.0 %
Income from renting movable property 12.0 %
Capital gains on immovable property 25.0 %
Capital gains on movable property
Annuities from life insurance 12.0 %
Prizes and awards
Income from occasional activities 25.0 %
Revenues from donations and gifts
Revenues from lotteries and games activities

The annual income tax shall be assessed on the tax base at the tax rates of 12%, 25% and 40%. The assessed annual tax shall be reduced by the amounts of an advance tax paid on all reported income and the difference to be paid or refunded shall be determined. Where, during the tax period, a taxpayer has paid an advance tax in excess of the income tax due pursuant to the tax ruling, the overpaid amount shall be refunded to the taxpayer.

As not all tax payers are obliged to submit the annual tax return, for those the advance tax paid during the tax year is final and the items mentioned above and some others income are taxed finally at the tax rates applied for advance tax.

Withholding taxes
The tax is withheld when paid to residents on: Dividends: 12.00 %
Final Creditable
Interests from governments bonds:
Final Creditable
Interests from corporate bonds:
Final Creditable
Interests from special saving accounts: 12.00 %
Final Creditable
Interests from deposits: 12.00 %
Final Creditable

Tax due date

Advance tax is paid during the tax year when income is received; either withheld by the payer of the income or paid by the taxpayer within 8 days after the income is received, or on monthly basis according to a ruling of the Tax Administration (special rules apply to income from agriculture and forestry and to business income). On yearly basis, any additional tax is paid or overdue tax is returned within 15 days after the yearly written order is received.

Tax collector

Tax Administration of the Republic of Croatia.

Special features
Economic function

Environmental taxes

Tax revenue
ESA95 code d51aa

Annual tax revenue (millions)
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 12,191.20 HRK 3.69
2011 11,484.74 HRK 3.45
2010 11,373.45 HRK 3.47
2009 12,804.02 HRK 3.87
2008 13,360.35 HRK 3.84
2007 12,547.48 HRK 3.89
2006 10,606.89 HRK 3.60
2005 9,371.28 HRK 3.47
2004 9,258.59 HRK 3.69
2003 8,440.00 HRK 3.63
2002 8,030.22 HRK 3.79