Private Client—Croatia—Q&A guide
Produced in partnership with Katarina Džimbeg of Law Office Džimbeg

The following Private Client practice note produced in partnership with Katarina Džimbeg of Law Office Džimbeg provides comprehensive and up to date legal information covering:

  • Private Client—Croatia—Q&A guide
  • Taxation regime
  • What factors determine tax liability in your jurisdiction (eg domicile, residence or citizenship)?
  • What taxes apply to an individual’s income?
  • What taxes apply to an individual’s capital gains?
  • What taxes apply to lifetime gifts (outright or into trust) made by an individual?
  • What taxes apply to transfers on death and to an individual’s estate following death?
  • What taxes apply to an individual’s real property?
  • Are there any other direct or indirect taxes that apply to individuals in your jurisdiction?
  • How are charities taxed in your jurisdiction?
  • More...

Private Client—Croatia—Q&A guide

Taxation regime

What factors determine tax liability in your jurisdiction (eg domicile, residence or citizenship)?

Tax liability in Croatia is primarily determined by residence (either permanent or habitual residence).

Permanent residence of an individual, within the meaning of the General Tax Act, is deemed to be the place of their home, which they have owned or possessed for not less than 183 days in one or two calendar years (actual residence in such home is not required). If an individual has permanent residence both in Croatia and abroad, it is presumed that their residence is in the country of their family’s residence or the country from where such individual mostly leaves for work or where they mainly stay. However, if the other country does not consider this individual to be its tax resident, it is presumed that their residence is in Croatia.

Habitual residence is defined as the location at which an individual resides under circumstances which generally lead to the conclusion that they do not reside there temporarily. For tax purposes, habitual residence is deemed to be the place where one resides permanently or in chronologically linked periods for at least 183 days in one or two calendar years. Brief pauses of not more than one year are not relevant to this presumption.

For companies and other legal persons, their tax residency is determined pursuant to

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