Country topic
Tax in Croatia
Croatia treats you as having a permanent residence where you own or have a dwelling at your disposal for 183 days in one or two calendar years, and actual stay in it is not required. Habitual residence is a stay of at least 183 days in one or two calendar years, and the tax authority also looks at where your personal and economic ties are closest. Residents are taxed on income earned in Croatia and abroad. [T1] [T2] The tax authority says the lower income tax rate applies up to €60,000 a year and the higher rate above that, and that each local government sets its own rates: 15 to 20% and 25 to 30% in a municipality, up to 15 to 23% and 25 to 33% in the City of Zagreb, with 20% and 30% as defaults. We did not find the rate Zagreb actually set, so that is unknown. We did not price social charges, local taxes or any other tax. [T2]
What we found
The research, with its sources.
Research information, not advice. Rules change, so check the source before you act on one.
- Croatia treats you as having a permanent residence where you own or have a dwelling at your disposal for 183 days in one or two calendar years, and actual stay in it is not required. Habitual residence is a stay of at least 183 days in one or two calendar years, and the tax authority also looks at where your personal and economic ties are closest. Residents are taxed on income earned in Croatia and abroad. [T1] [T2]
- The tax authority says the lower income tax rate applies up to €60,000 a year and the higher rate above that, and that each local government sets its own rates: 15 to 20% and 25 to 30% in a municipality, up to 15 to 23% and 25 to 33% in the City of Zagreb, with 20% and 30% as defaults. We did not find the rate Zagreb actually set, so that is unknown. We did not price social charges, local taxes or any other tax. [T2]
- Since 1 January 2021 the Income Tax Act says that receipts from work as an employee or an activity for an employer not registered in Croatia, earned on the strength of digital nomad status, are not treated as income. The wording ties the exemption to that status and to work for an employer outside Croatia. It says nothing about other income such as rent, interest or gains, and how it applies to a freelancer invoicing clients is for a Croatian tax adviser to confirm. We read the 2020 amending Act and the Tax Administration's list of 2021 changes, not the current consolidated Act. [T3] [T4]
- US citizens abroad file as they would at home, on worldwide income. The 2026 foreign earned income exclusion limit is $132,900 per person, its physical presence test needs 330 full days abroad in 12 consecutive months, and you cannot claim a foreign tax credit on income you exclude. Foreign accounts above $10,000 in total at any time in the year are reportable on an FBAR. Moving abroad does not always end state tax residency, a private adviser says, so check your state. [T5] [T6] [T7] [T8] [T9] [T10]
- The United States and Croatia signed an income tax treaty on 7 December 2022 and a protocol amending it on 28 April 2026 in Dubrovnik, but both still need US Senate advice and consent, and the IRS list of treaties in effect has no entry for Croatia. AmCham Croatia, a private business association, said in April 2026 the treaty was not yet ratified. No treaty rules currently decide which country taxes what or break a tie if both treat you as resident. [T11] [T12] [T13] [T14]
- For Canadians, the Department of Finance Canada's tax treaties page lists Croatia among the treaties in force. We did not open the treaty, so what it says about wages, pensions or residence ties is unknown here; ask an adviser. [T15]
- For Australians, Treasury's list of Australia's income tax treaties (last updated 24 March 2026) has no entry for Croatia. For New Zealanders, Inland Revenue's tax policy page lists Croatia among treaties signed but not yet in force. Neither passport currently has a treaty in force with Croatia on these lists. [T16] [T17]
- The list of US totalization agreements we read, a Social Security Administration page copied on 11 May 2026, has no entry for Croatia, so no agreement assigns you to one country's social security system; agreements for Canada, Australia and New Zealand were not checked. Whether Croatia asks a digital nomad for social contributions is unknown. A foreign person asks for a personal identification number (OIB) at the Tax Administration office that covers the place, in person or through a proxy, with a completed form and a passport; how long it takes and any fee are unknown. [T18] [T19]
The country
More on Croatia.
Topics
More about Croatia.
Questions about Tax in Croatia.
When do I become a Croatian tax resident?
Croatia treats you as resident if you own or have a dwelling at your disposal for 183 days in one or two calendar years, or stay 183 days, and it also looks at where your personal and economic ties are closest. Residents are taxed on income earned in Croatia and abroad.
What are Croatia's income tax rates?
There is a lower rate up to €60,000 a year and a higher rate above, set by each local government: 15 to 20% and 25 to 30% in a municipality, up to 15 to 23% and 25 to 33% in the City of Zagreb, with 20% and 30% as defaults. The rate Zagreb actually set is unknown here.
Is there a tax exemption for digital nomads in Croatia?
Since 1 January 2021, receipts from work for an employer not registered in Croatia, earned on digital nomad status, are not treated as income. It names employers and is silent on rent or gains, so freelancers and other income are for a Croatian tax adviser. We did not read the current consolidated Act.
Does Croatia have a tax treaty with my country?
Canada's Department of Finance lists Croatia among treaties in force. The US signed a treaty in 2022 and a protocol in April 2026, not yet in force; the IRS list has no entry. Inland Revenue lists New Zealand's as signed, not in force. Treasury's list shows none for Australia.
Do I still file taxes at home if I move to Croatia?
US citizens abroad file on worldwide income, and the 2026 foreign earned income exclusion limit is $132,900 per person. Other passports depend on home-country residence rules that we did not check; ask an adviser in both countries before you count on any exemption.
Sources
Where each figure comes from.
Every figure on this page links to the page we read, with the date we checked it.
- [T1] Determination of residency status, Croatian Tax Administration (Porezna uprava). Checked 15 October 2026.
- [T2] Income tax: rates and bands, Croatian Tax Administration (Porezna uprava). Checked 15 October 2026.
- [T3] Act amending the Income Tax Act (NN 138/2020), article 2: new points 25 and 26 of article 9(1), Croatian Parliament, Narodne novine 138/2020. Checked 15 October 2026.
- [T4] Tax changes from 1 January 2021, Croatian Tax Administration (Porezna uprava). Checked 15 October 2026.
- [T5] US citizens abroad: filing requirements, Internal Revenue Service. Checked 15 October 2026.
- [T6] Foreign earned income exclusion, Internal Revenue Service. Checked 15 October 2026.
- [T7] Physical presence test, Internal Revenue Service. Checked 15 October 2026.
- [T8] Foreign tax credit, Internal Revenue Service. Checked 15 October 2026.
- [T9] Report of Foreign Bank and Financial Accounts (FBAR), Financial Crimes Enforcement Network (FinCEN). Checked 15 October 2026.
- [T10] State taxes after moving abroad, Expatriate Tax Returns (private adviser, not official). Checked 15 October 2026.
- [T11] United States income tax treaties A to Z, Internal Revenue Service. Checked 15 October 2026.
- [T12] Treasury press release: United States and Croatia sign income tax treaty (7 December 2022), US Department of the Treasury. Checked 15 October 2026.
- [T13] Treasury press release: protocol amending the 2022 treaty signed (28 April 2026), US Department of the Treasury. Checked 15 October 2026.
- [T14] Meeting in the U.S. Senate on double taxation (21 April 2026), AmCham Croatia (American Chamber of Commerce in Croatia, private business association). Checked 15 October 2026.
- [T15] Tax treaties (Canada's income tax conventions), Department of Finance Canada. Checked 15 October 2026.
- [T16] Income tax treaties (list of Australia's treaties), Australian Government, Treasury. Checked 15 October 2026.
- [T17] Tax treaties: double tax agreements in force, New Zealand Inland Revenue (Tax Policy). Checked 15 October 2026.
- [T18] Totalization agreements: overview and list, Internet Archive copy of 11 May 2026, US Social Security Administration. Checked 15 October 2026.
- [T19] Foreign person: personal identification number (OIB), Croatian Tax Administration (Porezna uprava). Checked 15 October 2026.