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Income tax: information on the general rules, rates, taxpayer and submitting annual income tax return 

​Taxpayer:

  • A natural person who generates an income,
  • 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.

Income sources

  • income from employment (salary and pension),
  • income from self-employment activity,
  • income from property and property rights,
  • income from capital,
  • other income.

Resident

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

Non-resident

  • ​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 provisions of the Income Tax Act.

Taxable income of a resident

  • ​​​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 generated in the country and abroad (world income principle).

​Taxable income of a non-resident

  • ​​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 non-resident has acquired in the country (principle of domestic income).

Resident and non-resident

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

  • the amount of wages for newly employed persons,
  • the amount of the state aid for education and training and practical education for crafts according to special regulations,
  • the amount of expenses for research and development,
  • the loss carried forward, after previously mentioned deductions, 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.

Income tax rates

  • 20% up to HRK 360,000.00 annually (up to HRK 30,000.00 monthly)
  • 30% above HRK 360,000.00 annually (above HRK 30,000.00 monthly)

Personal allowance

  • Taxpayers personal allowance is a non-taxable part of income, and it amounts to HRK 2,500.00. Personal allowance is presented in table Personal allowance.

Annual income tax return

  • annual return (DOH Form) is submitted by a taxpayer gaining income from self-employment activity, a seafarer for income from employment gained as a member of a ship crew in international voyage, a natural person asked to do so by the Tax Administration. Taxpayers are obliged to submit tax return by the end of February of the current year for the previous year.
  • The Tax Administration also conducts a special procedure for assessing annual income tax for those taxpayers who gained income from employment in the taxation period (year) and other income which is not deemed final.
  • In cases when the Tax Administration has no available data on grounds of which the prescribed rights to the reduction of income could be executed, thus entitling citizens to the refund of overpaid tax, they can submit a Request for the acknowledgement of rights in a special procedure (ZPP-DOH) by the end of February for the previous year, together with authentic documentation.

Accounts for income tax and income tax surtax for towns//municipalities are listed here. ​

Competent authority and regulations

Ministry of Finance, Tax Administration

Boškovićeva 5

10 000 Zagreb

+385 1 480 9000

Info: pisitenam.porezna-uprava.hr​

Income Tax Act (Official Gazette 115/16, 106/18, 121/19, 32/20, 138/20), Income Tax Act​

Date of update: 10 February​ 2021