This article provides a clear overview of the individual income tax framework in Croatia for 2025, including rates, brackets, and local surtax details. All data is based on the current official regulations and the most recently published government information.
Overview of the Croatian Individual Income Tax System
Croatia applies a progressive individual income tax system, with tax rates increasing as income rises. The system is based on the taxpayer’s total annual income and includes both national tax rates and local surtaxes, such as those applied in major cities like Zagreb.
Progressive Tax Brackets (2025)
The personal income tax in Croatia is calculated on worldwide income for residents, with a progressive rate structure as shown below. For the 2025 tax year, the brackets and corresponding rates are:
| Taxable Income (EUR) | Rate (%) |
|---|---|
| €0 – €60,000 | 15% |
| Over €60,000 | 25% |
These brackets apply to total annual taxable income. There is no separate rate for capital gains or investment income in this context, as the focus is on general personal income tax for individuals.
Assessment Basis and Taxable Income
Personal income tax in Croatia is assessed on total income, which includes earnings from employment, self-employment, property, and certain other sources. The system is based on annual income, with tax due on the sum of all relevant income streams. Official figures on allowable deductions or tax credits are not included in the current data extract.
Local Surtaxes: Additional Charges by Municipality
In addition to the national progressive rates, Croatia allows cities and municipalities to levy a local personal income tax surtax. The actual surtax rate depends on your municipality of residence. For the City of Zagreb in 2025, the maximum possible surtax is 8% of the calculated personal income tax (PIT), though some localities may apply rates up to 18%.
| Municipality/City | Surtax Rate (%) | Application Notes |
|---|---|---|
| City of Zagreb | 8% | Maximum possible for 2025; applied to calculated PIT |
| Other municipalities | Up to 18% | Actual rate varies by locality – check local regulations |
This surtax is charged on top of the national personal income tax. For example, Zagreb residents with substantial taxable income will pay both the national tax at the applicable rate and then an additional 8% of that tax to the city.
Important Details and Missing Data
No specific data has been provided on further deductions, personal or family allowances, or precise tax base adjustments for 2025. Current information on these points may be available via Croatian government channels and is typically updated every fiscal year. Additionally, there is no information available on holding period requirements for calculating this tax in the provided data.
Practical Calculation Example
Suppose an individual taxpayer in Zagreb has a total taxable income of €80,000 in 2025:
- The first €60,000 is taxed at 15%: €60,000 x 15% = €9,000
- The remaining €20,000 is taxed at 25%: €20,000 x 25% = €5,000
- Total national income tax: €9,000 + €5,000 = €14,000
- Zagreb local surtax: 8% x €14,000 = €1,120
- Total tax liability: €14,000 + €1,120 = €15,120
This is a simplified example and does not account for possible deductions or contributions.
Pro Tips for Navigating Croatian Income Tax in 2025
- Confirm your municipality’s surtax rate: Always verify the local surtax applied in your area, as rates vary significantly and can impact your effective tax burden.
- Maintain clear income documentation: Croatian authorities assess tax on your total annual income, so accurate record-keeping—including foreign income—is essential for compliance and potential audit situations.
- Consult official guidance for deductions: For optimal tax planning, check regularly with the official Croatian government website for updates on available deductions, allowances, or credits.
- Plan for higher marginal rates if you cross income thresholds: If your income is likely to exceed €60,000, prepare for the higher 25% bracket to avoid surprises at year-end.
Useful Links
Croatia’s progressive system, together with varying local surtaxes, means that your total personal income tax burden will depend both on your annual income and your place of residence within Croatia. Efficient tax planning is best pursued with a full understanding of both the national brackets and local tax surcharges. Always stay up to date with official sources for the most accurate guidance.