Company Formation & Tax in Croatia
Euro, eurozone and Schengen since 2023 — the d.o.o., a two-tier profit tax that rewards smaller companies, and full Adriatic-EU access.
Croatia joined the euro, the eurozone and the Schengen area in 2023, so a Croatian company now trades in euros with passport-free movement across most of the EU. Its profit tax is deliberately two-tier, charging smaller companies a markedly lower rate than larger ones.
Choosing an entity
The standard vehicle is the d.o.o. (društvo s ograničenom odgovornošću, private limited company), with €2,500 minimum share capital, of which a quarter (€625) is paid in cash at incorporation; a simplified low-capital variant (j.d.o.o.) also exists. The first hard prerequisite is the OIB (personal tax number) for the founders and directors. A notary then executes the articles, the company is entered in the Court Register (Sudski registar), and it is registered with the Tax Administration (Porezna uprava); financial statements are filed with FINA. Allow roughly two to four weeks to a fully operational entity. Real-time fiscalisation and e-invoicing apply from January 2026.
Profit tax and VAT
| Tax | Rate |
|---|---|
| Profit tax — revenue up to €1m | 10% |
| Profit tax — revenue above €1m | 18% |
| VAT (PDV, standard) | 25% |
| VAT (reduced) | 13% / 5% |
| VAT registration threshold | €60,000 |
Profit tax (corporate income tax) is 10% for companies with annual revenue up to €1,000,000 and 18% above that threshold — a structure designed to support SMEs. VAT (PDV) is 25% standard, among the higher rates in the EU, with reduced rates of 13% and 5%; registration becomes mandatory once revenue exceeds €60,000 in any rolling twelve-month period. Withholding tax of 15% generally applies to dividends, interest and royalties paid to non-residents (reducible under treaties), rising to 25% for payments to non-cooperative jurisdictions. The profit tax return (Form PD) is filed electronically and is due within four months of year-end.
Frequently asked questions
What is the corporate tax rate in Croatia?
Profit tax is two-tier: 10% for annual revenue up to €1,000,000 and 18% above it.
How much capital do I need for a Croatian d.o.o.?
€2,500 minimum, of which €625 (one quarter) is paid in cash at incorporation; a simplified j.d.o.o. variant needs less.
What is the Croatian VAT rate?
25% standard, with reduced rates of 13% and 5%; registration applies above €60,000 of revenue.
Official sources
This guide is general information prepared by ARM Management and is current as at June 2026. It is not legal or tax advice; rules and thresholds change. Confirm against the Tax Administration (Porezna uprava), or with an advisor, before acting.
Set up in Croatia with confidence.
ARM Management advises international companies on Croatian entity formation, registration and tax compliance, alongside wider Adriatic and CEE structuring. Begin with a confidential conversation.