Establishing a business in Croatia
Taxation in Croatia
Corporate income tax
Standard corporate tax rate is 18% in Croatia and for the companies whose annual income below 3 millions HRK is 12%
VAT registration is required if your turnover for the past year has exceeded the £85,000.However you can voluntary register for VAT in the UK. An advantage of voluntary VAT registering is that the company can avoid any late VAT registration penalties if the company exceeds the VAT registration threshold in the future without realising. Therefore it is beneficial to voluntarily VAT register in order to avoid any ongoing concern about exceeding the VAT registration threshold.
General value added tax rate is 25% in Croatia and lower rates are 13% and 5%