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Economy and Banking Sector of Croatia

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in Croatia: 0.0 - 12.0%

Withholding tax rates applied on payments of interest and dividends in Croatia are shown in Table 1.

Dividends Interest
Natural Persons (residents) 12.0 %12.0 %
Natural Persons (non-residents) 12.0 %12.0 %
Table 1. Withholding tax rates in Croatia.

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Croatia: 54 Signed Agreements

Croatia signed DTAs which already came info force with the following jurisdictions:

AL Albania
AM Armenia
AT Austria
AZ Azerbaijan
BY Belarus
BE Belgium
BA Bosnia and Herzegovina
BG Bulgaria
CA Canada
CL Chile
CN China
CZ Czech Republic
DK Denmark
EE Estonia
FI Finland
FR France
GE Georgia
DE Germany
GR Greece
HU Hungary
IS Iceland
ID Indonesia
IR Iran, Islamic Republic of
IE Ireland
IL Israel
IT Italy
JO Jordan
KR Korea, Republic of
KW Kuwait
LV Latvia
LT Lithuania
MK Macedonia
MY Malaysia
MT Malta
MU Mauritius
MD Moldova, Republic of
ME Montenegro
MA Morocco
NL Netherlands
NO Norway
PL Poland
QA Qatar
RO Romania
RU Russian Federation
RS Serbia
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
SE Sweden
CH Switzerland
TR Turkey
UA Ukraine
GB United Kingdom

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Automatic Exchange: Starts in September 2017

Croatia signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Automatic Excnange: 54 Bilateral Agreements to Receive Information

Croatia has signed bilateral agreements with 54 jurisdictions to automatically receive information:

AD Andorra
AR Argentina
AU Australia
AT Austria
BE Belgium
BQ Bonaire, Saint Eustatius and Saba
BG Bulgaria
CN China
CO Colombia
CY Cyprus
CZ Czech Republic
DK Denmark
EE Estonia
FO Faroe Islands
FI Finland
FR France
DE Germany
GI Gibraltar
GR Greece
GL Greenland
GG Guernsey
HU Hungary
IS Iceland
IN India
IE Ireland
IM Isle of Man
IT Italy
JP Japan
JE Jersey
KR Korea, Republic of
LV Latvia
LI Liechtenstein
LT Lithuania
LU Luxembourg
MY Malaysia
MT Malta
MU Mauritius
MX Mexico
MC Monaco
NL Netherlands
NZ New Zealand
NO Norway
PL Poland
PT Portugal
RO Romania
SM San Marino
SC Seychelles
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
SE Sweden
CH Switzerland
GB United Kingdom

Automatic Excnange: 65 Bilateral Agreements to Send Information

Croatia has signed bilateral agreements with 65 jurisdictions to automatically send information:

AD Andorra
AI Anguilla
AR Argentina
AU Australia
AT Austria
BE Belgium
BZ Belize
BM Bermuda
BQ Bonaire, Saint Eustatius and Saba
VG British Virgin Islands
BG Bulgaria
KY Cayman Islands
CN China
CO Colombia
CR Costa Rica
CY Cyprus
CZ Czech Republic
DK Denmark
EE Estonia
FO Faroe Islands
FI Finland
FR France
DE Germany
GI Gibraltar
GR Greece
GL Greenland
GG Guernsey
HU Hungary
IS Iceland
IN India
ID Indonesia
IE Ireland
IM Isle of Man
IT Italy
JP Japan
JE Jersey
KR Korea, Republic of
LV Latvia
LI Liechtenstein
LT Lithuania
LU Luxembourg
MY Malaysia
MT Malta
MU Mauritius
MX Mexico
MC Monaco
MS Montserrat
NL Netherlands
NZ New Zealand
NO Norway
PL Poland
PT Portugal
RO Romania
LC Saint Lucia
WS Samoa
SM San Marino
SC Seychelles
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
SE Sweden
CH Switzerland
TC Turks and Caicos Islands
GB United Kingdom

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Croatia
IGA in effect since 20 March 2015, Model 1

Croatia has FATCA agreement with the U.S. in effect since 20 March 2015 (Intergovernmental Agreement Model 1). Financial institutions operating in Croatia are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Croatian financial accounts hold in U.S. financial institutions will be reported to Croatian authorities.

Further Information