Wednesday 13 August 2008

Taxes in Croatia


Taxes in Croatia


Taxes in Croatia are worthy to be considered in placing of foreign investments. The most interesting points of Croatian tax systems are:


Company and personnal taxes
1. In case, that your company will hire at least 50 domestic employees and your company will invest at least 20 mil Croatian Kunas (approx. 1 HRK is for 4 CZK, (CZK/USD = cca 21)), your tax rate is 3 %.

2. In case that you will not fulfill above mentioned requirements, you are obliged to pay 20 % as company income tax (in some areas as healthcare, etc., there is decrease of rate to 5 - 10 %).

3. Personnal tax is progressive and varies from 15 - 35 % based upon level of your salary. As in most of Central European countries, you have to also pay Social and Health insurance in percentage of 11,6 % for social insurance and 9 % for health insurance (there are also payments from your employeer - 16,6 % together).

Value added tax
There is only one tax rate of value added tax of 22 % (there are also few items with zero rate but the goods/services to which it relates are limited (as bread, milk,cures,etc.).

Other taxes

See additional information at:

www.lowtax.net
www.carina.hr (Croatian custom office)
www.hak.hr (Information on highway tolls)
www.hnb.hr (Croation National Bank)
www.hgk.hr (Tax overview)

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