Croatia offers companies endless opportunities for growth and expansion, with shipbuilding and tourism the most prominent industries. To get started in Croatia, you must have a registered accountant to manage your tax filings and report to the government. Croatia also has a PDV tax (similar to VAT in other countries) which is 25% added to the sale of items (10% on select tourist items). Accepting cash payments for your business increases your reporting liabilities to the government, including reporting cash transactions in real-time.

Labor and Payroll Considerations in Croatia:

  • Minimum wage is 3,750 kuna per month ($556 USD)
  • Verbal employment contracts are considered to have an unlimited term
  • Normal working hours are 40 per week, but can be as high as 60 with collective bargaining agreements
  • Collective Bargaining Agreements are set at industry and company levels
  • Income tax payments are via a Pay-As-You-Earn (PAYE) system
  • Employers withhold income tax, social security, PDV from employee pay
  • Employee pay stubs must include gross wages, deduction amounts, net wages, and other payments
  • Foreign nationals who are not EEA nationals and do not have permanent residence in Croatia must apply for a work permit and an employment contract is required
  • Croatia has set quotas for the number of foreign workers allowed

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