GoTwo-tier profit tax
10 % up to €1 m annual revenue – the relevant rate for most SMEs; 18 % above.
Company formation
Company Formation in Croatia
Croatia has been a member of the eurozone and the Schengen area since 2023 and combines EU legal certainty with moderate taxes: 10 % profit tax up to €1 m annual revenue, 18 % above. The d.o.o. can be formed from €2,500 of capital. Legal status: 2026, without guarantee.
profit tax 10/18 %d.o.o. from €2,500euro & Schengen since 2023
Key figures
Croatia at a glance
10 %
Profit tax up to €1 m revenue
2.500 €
Minimum capital d.o.o.
1–2 weeks
Typical formation time
10 %
Withholding tax on dividends
Advantages
What speaks for Croatia
Euro + Schengen
Full currency and travel freedom since 1 Jan 2023 – easy market access from the DACH region.
Adriatic location
Tourism, nearshoring and a growing tech scene (above all Zagreb and Split); digital-nomad rules available.
Tax comparison
Example: €100,000 profit
| Germany | Croatia | |
|---|---|---|
| Corporate tax | ~30 % (effective) | 10 % (≤ €1 m revenue) / 18 % |
| Tax on €100,000 profit | ~€30,000 | €10,000 (at ≤ €1 m revenue) |
| Special feature | Municipal trade tax | threshold based on revenue, not profit |
The rate depends on annual revenue (not profit). Distributions bear 10 % capital-gains tax.
Legal forms
Legal forms at a glance
| Legal form | Minimum capital | Liability | Typical use |
|---|---|---|---|
| d.o.o. | €2,500 | limited | Standard SMEs |
| j.d.o.o. (simplified) | from €1 | limited | Micro formation (simplified form) |
| d.d. (joint-stock) | €25,000 | limited | Larger firms |
| Obrt (trade) | none | unlimited | Sole proprietorship/crafts |
Process
How incorporation works
Name & documents
Check the company name, prepare formation documents.
Notary / HITRO.HR
Notarisation; HITRO.HR bundles the administrative steps.
Commercial register
Entry in the court register (sudski registar).
OIB & tax registration
Tax number (OIB) and registration with the tax administration.
Account + capital
Open the business account, pay in the share capital.
Social security
Registration for managers and employees.
Usually 1–2 weeks.
Costs
Costs (indicative)
Notary and fees ~€400–800 plus €2,500 share capital; j.d.o.o. cheaper (indicative).
Taxes
Corporate taxes
| Item | Rate |
|---|---|
| Profit tax (revenue ≤ €1 m) | 10 % |
| Profit tax (revenue > €1 m) | 18 % |
| Capital-gains tax on dividends | 10 % |
| VAT (PDV), standard rate | 25 % |
Knowledge check
Worth remembering
Tap a card to reveal the answer. Content AI-assisted and editorially reviewed.
Profit tax for SMEs?
Show answer
10 % up to €1 m annual revenue, 18 % above.
Minimum capital d.o.o.?
Show answer
€2,500 (j.d.o.o. from ~€1).
Since when the euro?
Show answer
Since 1 January 2023 (together with Schengen).
Location in numbers
Croatia in numbers
| Metric | Value |
|---|---|
| EU member | since 2013; euro & Schengen since 1 Jan 2023 |
| Population | ~3.8 m |
| Profit-tax threshold | €1 m annual revenue |
| Tourism share of GDP | ~20 % |
Latest developments
Latest developments (as of July 2026)
- Two-tier profit tax 10/18 % established; threshold at €1 m revenue.
- Euro and Schengen accession 2023 cut transaction and travel costs.
- Digital-nomad residence rules in place; growing tech scene in Zagreb and Split.
FAQ
Frequently asked questions about Croatia
How high is the profit tax?
10 % up to €1 m annual revenue, 18 % above.
How much capital does a d.o.o. need?
€2,500; the simplified j.d.o.o. starts from about €1.
How long does formation take?
Usually 1–2 weeks via a notary or HITRO.HR.
Which taxes on distributions?
10 % capital-gains tax on dividends.
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Sources & disclaimer
Sources
This page is for general information only and does not replace legal or tax advice. Binding information is provided by the competent authorities of the respective country and by lawyers, notaries and tax advisors licensed there. For the tax consequences of relocating from Germany or Austria, tax advisors licensed in those countries are responsible. All information without guarantee. Status: July 2026. For an individual assessment: contact@goglobal.associates.
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