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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,
If several natural persons together generate an income, the taxpayer shall be each natural person separately, for his or her own share in the jointly generated 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
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 gains 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 (for annual income)
Lower rate up to EUR 60,000.00 annually (up to EUR 5,000.00 monthly)
Higher rate above EUR 60,000.00 annually (above EUR 5,000.00 monthly)
The amounts of lower and higher rates are determined by the representative bodies of the units of local self-government by virtue of their own decision, (lower in the range from 15% to 23%, and higher in the range from 25% to 33%), while where the representative body of the unit of local self-government fails to adopt a decision within the prescribed deadline, the following rate applies:
- 20% up to EUR 60,000.00 annually (EUR 5,000.00 monthly) and
- 30% above EUR 60,000.00 annually (EUR 5,000.00 monthly).
The amounts of tax rates are presented in the Table available under the link income tax rate for annual taxes.
Personal allowance
Taxpayers’ personal allowance is a non-taxable part of income. Basic personal allowance amounts to EUR 560.00 monthly, and it may be increased depending on the bases of personal allowance, as presented in the table available under the link personal allowance (porezna-uprava.hr)
Annual income tax return
Annual return (DOH Form (2024), from 2025 and onwards 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 from 2023 and onwards Form ZPP-DOH,
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 (OG 115/16, 106/18, 121/19, 32/20, 138/20, 151/22, 114/23 and 152/24)
Date of update: 8 January 2025
