Tax and compliance in Croatia

Snapshot

A business account in Croatia is not a tax in itself, but it underpins your tax records. Clean bank records support your PDV, or VAT, reporting, and the Accounting Act generally requires business records to be kept for at least 11 years.

VAT threshold: The small business PDV exemption applies up to EUR 60,000 of annual turnover from 2025, up from EUR 40,000. Standard PDV rate is 25 percent. As of 8 December 2025.
Record keeping: Keep books, records, and supporting documents for at least 11 years under the Accounting Act, and payroll records permanently.
Separate account: Generally required for a d.o.o., strongly helpful for an obrt or sole trader.
Most providers: Offer statements and accounting feeds that aid compliance

Fees and features as of 8 December 2025Last reviewed 8 December 2025

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

In Croatia your business account is the backbone of your tax records rather than a tax obligation on its own. Small businesses can use the small business VAT exemption, which from 2025 applies up to EUR 60,000 of annual turnover, up from EUR 40,000 before. Above that you charge PDV at the standard rate of 25 percent, report it to the Tax Administration, and need a VAT identification number with the HR prefix. The Accounting Act, the Zakon o racunovodstvu, generally requires records, including bank records, to be kept for at least 11 years. A separate business account makes this far easier. This is general information, so verify your position with the Tax Administration or a tax adviser.

How a business account relates to tax in Croatia

The account itself does not create a tax, but it produces the records that tax compliance relies on. The main turnover tax is the porez na dodanu vrijednost, the PDV or VAT, administered by the Tax Administration, the Porezna uprava. Small businesses can apply the small business exemption, which from 2025 covers annual turnover up to EUR 60,000, raised from EUR 40,000. Above the limit you charge PDV, currently at a standard rate of 25 percent, file PDV returns, and use a VAT identification number that begins with the HR prefix. Companies also pay corporate income tax, the porez na dobit, at 10 percent on annual revenue up to EUR 1,000,000 and 18 percent above that, while sole traders and obrts can pay personal income tax or use a lump sum scheme. As of 8 December 2025.

VAT and reporting

Once over the small business limit, a business charges PDV on its sales and files PDV returns to report and pay what is owed and to reclaim input PDV. The figures on a return are substantiated by your records, so clean and complete bank records make reporting more reliable. As of 8 December 2025. Verify the current rules with the Tax Administration.

Record keeping

The Accounting Act generally requires businesses to keep books, records, and supporting documents for at least 11 years, counted from the end of the year of the last entry, while payroll records are kept permanently. Mixing business and personal money in one account complicates record keeping and PDV attribution, which is why a separate business account is recommended and is generally required for a d.o.o. as a separate legal person. As of 8 December 2025.

What to keep on top of

For tax and compliance tied to your business account in Croatia, watch these, as of 8 December 2025. Verify with the Tax Administration

Whether your turnover has reached the EUR 60,000 small business limit, and registering for PDV and a VAT number when it does.
Filing your PDV returns on time and keeping the records that support them.
Keeping books, bank records, and invoices for at least 11 years, ideally with an accounting feed from your account.

How to keep your account compliant

Keep business money in a dedicated business account, separate from personal funds.
Connect your account to accounting software so transactions feed your PDV and bookkeeping records.
Confirm your obligations with the Tax Administration or a tax adviser, since thresholds and rules can change.

Compare business accounts available in Croatia

These providers accept business customers in Croatia. Fees and eligibility shown as of 8 December 2025. Confirm current terms with the provider before applying.

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Questions about tax and compliance in Croatia

When must a Croatian business register for VAT?

Businesses below the small business limit can use the exemption, which from 2025 applies up to EUR 60,000 of annual turnover, up from EUR 40,000 before. Above that you charge PDV, currently at a standard rate of 25 percent, and you need a VAT identification number with the HR prefix. As of 8 December 2025. Verify with the Tax Administration.

How long must business records be kept in Croatia?

Under the Accounting Act, business books, records, and supporting documents must generally be kept for at least 11 years, counted from the end of the year of the last entry, while payroll records are kept permanently. As of 8 December 2025. Verify the current rules with the Tax Administration.

What is the corporate income tax rate in Croatia?

The porez na dobit is charged at 10 percent on annual revenue up to EUR 1,000,000 and 18 percent on revenue above that. Sole traders and obrts can instead pay personal income tax or use a lump sum scheme. Clean bank records support the figures you report. As of 8 December 2025. Verify with the Tax Administration.

Do you need a separate business bank account for tax in Croatia?

A d.o.o. generally needs its own account because it is a separate legal person, while an obrt or sole trader is not always required to have one. A separate business account makes record keeping and PDV reporting easier, and mixed accounts complicate compliance. As of 8 December 2025. Verify your situation with a tax adviser.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 8 December 2025. Confirm current terms with the provider before applying.