Tax and custom system

Croatian tax system complies with European principles and is regulated in a way to encourage investments, both domestic and foreign. Croatian tax system is based on the principle of equality and equity. With constant improvements, the state seeks to create a modern tax system which will contribute in creating favourable conditions for foreign investment.

Croatian tax law is comparable to the European tax system. The Republic of Croatia guaranties the same legal position in the market to foreign and domestic entrepreneurs. The Republic of Croatia also guaranties to foreign investors that they may take the profits and invested capital out of country at any time.

Croatia has concluded agreements for the avoidance of double taxation with 43 countries around the world, so when taxing foreign entrepreneurs, these contracts are taken into account.

Tax system in Croatia can be divided into following groups:

national taxes
county taxes
city or municipal taxes
joint taxes
levy on the organisation of games of chance

Basic forms of taxation in Croatia are:

Type of tax	Tax rate
Profit tax	20,00%
Profit tax after deduction (can be reduced in accordance with the agreements on avoiding double taxation)	15,00%
Income tax	0 - 45%
Supertax	0 - 18%
Value-added tax	23,00%
Real estate transfer tax	5,00%

Croatian custom system

Croatia is a very attractive country for export-oriented production, it has reduced customs protection and applies agreements on free trade with 37 countries. 2001/2002., EU and Croatia eliminated tariffs and other restrictions on mutual trade in goods between themselves.

When importing goods, customs duties are charged according to the Customs Law and Law on Customs Tariff.
Croatia has a border with Slovenia, Bosnia and Herzegovina, Montenegro, Hungary, Serbia and Italy. In Croatia, there are 17 customs offices and 53 commodity customs branch.

Koprivnica also has it's own customs office.