​​

1. A natural person who generates an income,

2. An heir of all tax liabilities arising from income which the deceased generated before his or her death. The heir is at the same time the income taxpayer for the income from inherited income sources.

1. income from employment (salary and pension),​

2. income from self-employment,

3. income from property and property rights,

4. income from capital,

5. other income.

1. Resident is a natural person with permanent residence or habitual residence in the Republic of Croatia.

2. The resident is also a natural person without permanent residence or habitual residence in the Republic of Croatia, employed in the civil service of the Republic of Croatia and receiving salary on these grounds.

The non-resident is a natural person who has neither permanent residence nor habitual residence in the Republic of Croatia but has generated income in the Republic of Croatia which is taxed according to the provision​s of the Income Tax Act.

Taxable income of a resident is the total amount comprised of income from employment, income from self-employment, income from property and property rights, income from capital and other income which the resident has acquired in the country and abroad (world income principle), decreased by the basic personal allowance for residents.

Taxable income of a non-resident is the total amount comprised of income from employment, income from self-employment, income from property and property rights, income from capital, income from insurance and other income which the non-resident has acquired in the country (principle of domestic income), decreased by the basic personal allowance for non-residents.

Income from self-employment activity, which the resident realises in the country and abroad, and non-resident in the country, shall be reduced by:

1. the amount of wages for newly employed persons,

2. the amount of the state aid for education a​​​​nd training and practical education for crafts according to special regulations,

3. the amount of expenses for research and development,

4. the loss carried forward, after deductions from items 1, 2, and 3, which the resident, on the basis of performing a self-employment activity realised in the country and abroad, and a non-resident in the country.

​​

Lower rate up to 60,000.00 euros annually (up to 5.000,00 euros monthly)

Higher rate above 60,000.00 euros annually (above 5.000,00​ euros​ monthly)

The levels of tax rates are determined by the representative bodies of local self-government units by their decision.​

Prescribed limits of tax rates for annual income tax​​
The level of the local self-government unit	Lower rate (%)	Higher rate (%)
​Municipality​​​	above 15,00 up to 20,00​​	above 25,00 ​up to 30,00​​​
​A city with less than 30,000 inhabitants​​	above 15,00 up to 21,00​​	above 25,00 up to 31,00​​​​
​A city with more than 30,000 inhabitants​​	above ​15,00 up to 22,00​​​	above 25,00 up to 32,00​​
​City of Zagreb​​	above 15,00 up to 23,00​​	above ​25,00 up to 33​,00​​​

If the representative body of the local self-government unit does not make a decision to prescribe the level of tax rates within the prescribed period, a LOWER rate of 20% and a HIGHER rate of 30% are determined.​​​

Ordinance on Income Tax, 10/17, 106/18, 1/19, 80/19, 1/20, 74/20, 1/21, 102/22, 112/22,  156/22, 1/23​​, 56/23, 143/23

Ordinance on flat-rate taxation of self-employment activities 1/20, 1/21, 156/22​, 15/23, 1/24

Ordinance on renting and organising tourist accommodation which will be taxed in a flat-rate amount 1/19, 1/20, 1/21, 156/22​, 1/23

Decision establishing the conditions and the manner of downloading income and receipts data from the Registry of income and receipts Official Gazette 20/17, ​ 62/17​, 129/19