• The submission of tax acts and other documents that are not tax acts issued by the tax authority is adapted to electronic communication, and it is stipulated that a participant, by registering or logging into the electronic system of the tax authority, gives explicit consent for the delivery of documents electronically.
• A new provision stipulates that in cases where the prescribed monthly and annual tax returns are not submitted, the responsibility of a company member is also determined in the procedure for establishing the tax liability through a tax decision.
• Company members are jointly and severally liable together with the taxpayer for the determined liability, acting as guarantors. An appeal against the mentioned tax decision does not postpone its execution.

• Minimum gross wage in Croatia will increase to €970.00.
• Gross wage for directors will reach €1,168.70.
• Personal allowances increase from €560.00 to €600.00.
• Tax Brackets – the threshold for applying the higher income tax rate is raised from EUR 50,400 to EUR 60,000.
• New Upper Limits for Income Tax Rates.

More information about income tax rates in Croatia.

• Rewards for work performance will be increased to €1,200.00 annually.
• Severance pay upon retirement will be tax-free up to €1,500.00.
• Scholarships for students and pupils will increase to €600.00 per month.
• Compensation for living apart from one’s family will be tax-free up to €300.00 per month.

• The threshold for entering and exiting the VAT system is increased from €40,000.00 to €60,000.00.
• New provisions apply to small taxpayers from other EU member states, allowing them to claim VAT exemptions in Croatia for taxable transactions, provided they meet specific criteria.

More information on VAT in Croatia.

• Exemptions from contribution obligations for young people and posted workers will be abolished, though tax relief for young individuals entering the workforce for the first time will remain.
• Annual income tax reductions for individuals under 30 years of age will also be modified.

• The newly introduced property tax will be paid by domestic and foreign legal entities, as well as individuals who own property as of March 31 of the year for which the tax is determined.
• The property tax is paid annually based on a decision issued by the Tax Administration, ranging from EUR 0.60 to EUR 8.00 per square meter of the property's usable area.
• The payment deadline is 15 days from the date of the decision.
• The tax amount is determined by a decision of the representative body of the local self-government unit.
• The law also provides exceptions from paying property tax.