Paying Taxes in Croatia

 1. What is the corporate tax in Croatia?

The corporate income tax rate in 2011 for legal entities that are registered in Croatia is 20%.

2. What is the VAT in Croatia?

The standard VAT rate in Croatia is 23%, but there are also exceptions, when several goods and services are only subject to a 10% or 0% VAT rate. For instance, the VAT rate for accommodation and newspapers is 10%.

3. How can the VAT be refunded in Croatia?

In order to have your VAT refunded in Croatia, you need to submit a claim to the Croatian Tax Administration or have a fiscal representative that goes in person to talk to the authorities, based on invoices. 

4. What is the dividend tax in Croatia?

According to the current tax laws in Croatia, the dividend tax does not apply to any type of company, be it resident or non-resident in Croatia.

5. Are there any incentives for foreign investors in Croatia?

Foreign investors are encouraged in Croatia by being given the same obligations and rights as local companies. Moreover, the government offers a great deal of financial and legal incentives, such as stipulating that no legal document shall reduce the rights granted to a foreign investor when he decides to set up a company in Croatia. Besides, it guarantees the free repatriation of profits or capital after fulfilling legal obligations. Last, but not least, Croatia offers well educated workforce, natural resources and a prosperous economic environment.

6. Why do I need a local accountant for my business in Croatia?

Running a business in Croatia will eventually need to meet the requirements of the tax system. Since it is a complex system, it is better to have a local accountant that has already been through a similar experience and knows how to deal with accounting situations. 

BridgeWest offers company formation in Croatia, including virtual office and other related services.