FREQUENTLY ASKED QUESTIONS
Q: If I pay taxes as a foreigner in Croatia as an individual or a company, will I also have to pay taxes on that income in my home country?A: No! It depends on how you want to use the profits generated or what your current situation or residency status is at the time, such as whether you are an employee. For businesses, profits taxed in Croatia are only taxed in Croatia, unless you want to make other transfers, for example, to your home country. It also depends on whether the company is a subsidiary or if it is founded by individuals, etc. It depends on the specific circumstances. As for individuals who work in Croatia for a certain period of time, the payment of taxes depends on the accumulation of income, the location of their family ties in their country of origin, or other factors. However, it is always best to verify the specifics directly with a consultant. Remember that within the EU, regulations are often changed.
Q: Is it true that the Croatian tax system is different from that of other EU countries?
A: Since Croatia joined the EU, tax systems have been aligned with the rest of the system. The difference is that, at least in Croatia, in public offices, via email or phone calls, you can get information within the regulated timeframes (within 30 days, after acceptance of the request only for that case, not continuously), even if there have been complexities in the tax documents. On the other hand, the speed of communication with the authorities has increased, and reimbursements and offsets are carried out without any problems, through the electronic system delegated to the accountant.
Q: Is it true that you must have a Croatian director or at least one employee hired in the company?
A: No! It is not necessary to have a Croatian employee (director or other employee), but there must be an active person working for the company. For example, one of the "foreign" partners could become a director (not employed), issue invoices, make supplier payments, etc., demonstrating through the A1 form of their country of residence (in the EU) that they pay their contributions there, or that there is an external consultant under contract who acts on behalf of the administrator. However, it is always better to hire a local employee, especially to send a strong signal to the local government that you have come to invest in Croatia, but also for a matter of language, as well as for refunds of taxes and duties, which by law are regulated.
Q: IWhat is the timeframe for opening a new company?
A: The timeframes can vary depending on whether you want to open a limited liability company (in Croatian d.o.o.) or a simplified limited liability company (in Croatian: j.d.o.o.). The difference between the two companies lies in the share capital, which in the SRL is €2,500 (to be used after the company is activated) and in its structure, such as the number of partners can be "unlimited" and there can be several directors, while that of the simplified one is reduced to 5 partners and one director, the share capital is €1 (which by law must be brought over time to €2,500, with a company resolution, or by accumulation of income). For a company founded by "foreigners," a standard SRL is always better, due to the peculiarities of its operation and its visibility towards the Croatian government.
Q: What is the first step for a non-resident when opening a trading company in Croatia?
A: The first step for a non-resident (foreign person) when opening a company in Croatia is obtaining the Personal Identification Number (OIB). A foreign person files a request for the assignment of OIB to the local authority of the Tax Administration through an authorizing officer by filling out the "Request form for assignment of OIB". OIB is determined and assigned to foreign natural and legal entities for the purpose of opening a company in Croatia.
Q: How to start a company in Croatia?
A: For more useful information on starting a company in Croatia, visit the following link: https://www.hitro.hr/en/how-to-start-a-company/