Living and working at a certain time in two or more different countries can be very exciting and interesting, as can be the decision to retire and move from abroad to Croatia. The obligation to pay taxes and report tax returns on earnings (income, retirement) often diminish this enthusiasm, especially if they arise as a surprise.

Make sure that whatever country you choose to work and / or live, even if it is temporarily, the Tax administration knows about your arrival and takes into account your activities, your spending, and the assets you create in that country. Tax administration through its own cooperation at international level exchanges more and more information and data, and one of the important sources is the reports collected by its taxpayers.

International taxation is a complex and highly dynamic area where tax obligations are actually created for each person, legal and / or physical, based on its specific lifestyle. Even if there are no new tax liabilities, there may be a requirement to submit reports to the tax administration.

Every legal and physical person is a taxpayer in the country of his / her residency but also in any country where he or she carries out some business activity, or even if he or she only receives non-taxable benefits. Tax liabilities may be tax payments and reporting or reporting alone.

Resident or non-resident are the keywords for determining tax liabilities in a country relative to the payment of taxes and/or the submission of reports to the Tax administration.https://www.porezna-uprava.hr/Gradani/Stranice/UtvrdivanjeRezidentnosti.aspx

Basically, the income that a resident  earns at home in Croatia and abroad is taxable in Croatia, whereby the total tax liability (under certain conditions) may be deducted for the tax paid abroad (principle of foreign income). The income that a non-resident achieves in Croatia is taxable in Croatia (the principle of domestic income)https://www.porezna-uprava.hr/HR_obrasci

Taxable income  for all taxpayers in Croatia could be income from:

 - Employee earnings 

• self employed activities

• property and property rights

• capital

• insurance (31.12.2018)

-Other income.

Forms

The non-resident are obliged to submit a forms:

-before they start business activity

-when they earn taxable income

-when they earn non-taxable income

 

If you click on a non-resident you can read more detailed information on receipts, taxes and tax liabilities of non-residents in the Croatian tax system.

The Real Estate Link contains more useful information for anyone who wants to invest in real estate in Croatia and / or earns income from property and property rights.