Several double taxation agreements have been signed by Croatia with countries worldwide. The provisions observe the avoidance of double taxation on the incomes of companies with origins in the contracting states. Knowing how business is run in Croatia will help foreign investors benefit from a reliable environment regardless of the chosen business entity. If you need help for opening a company in Croatia, we invite you to talk to our team of agents for starting a company in Croatia.
| Quick Facts | |
|---|---|
| What is a double taxation agreement? | A deal between two countries to avoid paying twice the same tax already generated & paid at source |
| Purposes of DTTs signed by Croatia | Reducing tax barriers and avoiding double taxation on generated incomes |
| DTTs are also known | As bilateral agreements or double tax conventions (DTC) |
| Who benefits from the DTTs signed by Croatia? | Foreign companies registered in Croatia |
| Types of incomes covered | – foreign-source income, – dividends, – royalties, – pension funds, – interests, – immovable property income, etc. |
| Applicable methods | exemptions and tax credits |
| Number of double tax treaties signed by Croatia (approx.) | 68 |
| New tax treaties signed by Croatia | with Liechtenstein, Switzerland, Australia, Saudi Arabia, etc. |
| Withholding tax | 5% on dividends, royalties, and interests. Higher or lower rates apply to specific signatory countries. |
| Tax exemptions | 0% tax rate applies in certain conditions, depending on the DTT signed by Croatia. |
| What is the Protocol on Social Security Coordination? | Part of the EU-UK Trade and Cooperation Agreement through which Croatia coordinates its social security system & taxation. |
| Are retirement benefit schemes protected by the DTTs signed by Croatia? | YES |
| Preventing tax evasion | With the help of tax agreements signed by Croatia |
| Preventing discriminatory tax treatments | Covered by the double taxation treaties signed by Croatia |
| Working with our Croatian lawyers | Our tax lawyers in Croatia can explain the DTTs signed by Croatia and guide foreigners in various tax-related matters. |
Table of Contents
What are the countries that signed DTTs with Croatia?
Armenia, Albania, Azerbaijan, Austria, Belgium, Belarus, Bulgaria, Bosnia and Herzegovina, Chile, Canada, Czech Republic, China, Cyprus, Denmark, Estonia, France, Finland, Germany, Georgia, Greece, Hungary, India, Italy, Iran, Iceland, Indonesia, Ireland, Israel, Jordan, Kuwait, Korea, Kosovo, Luxembourg, Latvia, Lithuania, Malaysia, Macedonia, Malta, Morocco, Mauritius, Montenegro, Moldova, Norway, the Netherlands, Oman, Portugal, Poland, Qatar, Russia, Romania, San Marino, Serbia, Saudi Arabia, Slovakia, Spain, Slovenia, Switzerland, Sweden, Syria, Turkmenistan, Turkey, UK and Ukraine are the countries that signed double tax treaties with Croatia. Here is an infographic with details on this topic:
General provisions of DTTs signed by Croatia
The avoidance of double taxation of profits is made through different methods for companies and natural persons. Among the provisions of a double taxation treaty signed by Croatia, we mention the following:
- companies in Croatia are subject to taxes on generated profits only in this country;
- the royalties, dividends, and interests are subject to a withholding tax of 5%;
- the incomes derived from immovable properties in Croatia are subject to a 15% rate on dividends;
- a 0% rate is applicable for the payment of royalties and dividends by the contracting state that signed a DDT with Croatia;
- Croatia offers a tax credit for companies that paid taxes in the country of origin.
We are at your disposal with information about the company formation in Croatia and about the taxes covered by the double taxation agreements signed by Croatia with the above-mentioned countries.
Who can benefit from the DTTs signed by Croatia?
Foreign companies with permanent establishments in Croatia are entitled to benefit from the provisions stipulated by the double taxation agreements signed in this sense. Knowing how profits are protected by the conventions established by Croatia will help foreign investors better understand the tax structure and the benefits in accordance, in order to properly direct the investments.
Recently signed double taxation agreements with Croatia
Croatia continues to strengthen its business and commercial relations with countries worldwide. In this regard, other double taxation treaties were signed in 2025, as follows:
- Croatia signed a double tax treaty with Liechtenstein in January 2025, which is expected to enter into force as soon as possible;
- also, this year, Croatia signed an agreement with Switzerland [to avoid double taxation of profits of companies and natural persons]. This treaty is expected to take effect in the near future;
- a new double taxation treaty was signed between Croatia and Australia in November 2025;
- Croatia signed a double taxation agreement with Saudi Arabia in 2024, which is expected to enter into force as soon as possible;
- a double tax treaty has been in place with the USA since December 2022. The US Senate is expected to ratify this agreement between the two countries.
We invite you to learn more about the double taxation treaties signed by Croatia from one of our specialists. You can also benefit from the services offered by our Croatian tax advisors if you have a company in Croatia and want to know how to avoid double taxation of profits.
Other important tax matters in Croatia
Company owners in Croatia must be up to date with all changes in the legislation regarding taxation. Several measures have recently been adopted by the Croatian authorities, and among them, the following are important:
- Croatia executed the Council Directive 2018/822 amending Directive 2011/16/EU in relation to reportable cross-border procedures (DAC6). This was possible through the Act on administrative cooperation in the tax field and the Rulebook on the automatic information exchange;
- the Croatian legislation implemented the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). This measure was negotiated within the Organization for Economic Co-operation and Development (OECD) for modifying tax treaties signed by Croatia with countries worldwide in order to remove double taxation;
- The legislation linked to Council Directive 2021/514 concerning administrative collaboration in the tax field and linked to digital platforms was also modified. As such, platform operators must report on the sale of goods, supply of personal services, and immovable property rentals to the local tax authorities in Croatia.
Feel free to contact our company incorporation specialists in Croatia and find out more details about the double taxation treaties signed by Croatia.