Income tax is a tax applied to the income of natural persons.
General / Persons liable to pay tax
There are special regulations for taxation in case of unlimited tax obligation and in case of limited tax obligation. Residents are taxed on worldwide income, nonresidents are taxed only on Croatia-source income.
The tax base is total income from employment, self-employment, property and proprietary rights, capital, insurance and other income less personal allowances. Gross income is reduced by the employee’s pension contribution payments (20% of gross income).
Rate of tax
Rates range from 12% to 40%, depending on gross income.
Deductions and allowances
Each individual is entitled to a personal allowance of HRK 2,600 per month. The deduction may be further increased for each dependent family member.