Croatian Tax Overview (2025)

Value Added Tax (VAT):

• Standard Rate: The standard VAT rate in Croatia is 25%.
• Reduced Rates: There are reduced VAT rates.
  It's essential to verify the specific reduced rates and the goods and services they apply to with the appropriate tax authorities, as these can change.
  The 13% rate you mentioned may or may not be current.
• Zero Rate: Certain goods and services are zero-rated (effectively exempt from VAT).
  The specific goods and services that qualify for the zero rate should be confirmed with the tax authorities.
  The items you mentioned (bread, milk, certain educational services, and medical supplies) may or may not be current.
• Exempt Services: Some services are exempt from VAT, including (but not limited to) insurance and financial services, most medical services, education, and welfare services.
  The specific services that are exempt should be confirmed with the tax authorities.
• Filing and Payment: VAT returns are typically filed and paid monthly.
  The exact filing deadline should be confirmed with the tax authorities.
• VAT Registration: VAT registration is compulsory when the annual turnover exceeds a certain threshold.
  The specific threshold (such as the HRK 300,000 you mentioned) should be confirmed with the tax authorities.
• Exports: Exports are generally exempt from VAT.

Real Estate Transfer Tax:

• Rate: The transfer tax on real estate transactions is levied on the purchase of land and real estate that is exempt from VAT.
  The specific rate (such as the 4% you mentioned) should be confirmed with the tax authorities.

Inheritance and Gift Tax:

• Rate: Inheritance and gift tax is imposed on Croatian movable assets that are donated or inherited.
  The specific rate (such as the 5% you mentioned) and any exemptions or limitations should be confirmed with the tax authorities.

Key Updates and Considerations:

• Tax Laws are Subject to Change: Croatian tax laws and regulations are subject to frequent updates and amendments. It is crucial to verify the latest information with a qualified tax advisor or by consulting official Croatian tax sources.
• Professional Advice: Tax regulations in Croatia can be complex. It is highly recommended to seek professional advice from a tax specialist experienced in Croatian tax law for specific guidance on your situation.