Croatia (HR)
Croatia is a scenic Adriatic nation at the crossroads of Central and Southern Europe, celebrated for its over 1,200 islands and islets, medieval walled cities, eight UNESCO World Heritage Sites, crystal-clear waters of the Dalmatian coast, and rich Habsburg-era architecture.
Capital: Zagreb
Region: Europe
Language: Croatian
Currency: EUR (€)
Cost of living: Affordable (index 52)
Emergency: 112
Premium
Business Setup
Start a business or go freelance in Croatia.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Choose your business structure: Obrt (sole trader) is simplest; j.d.o.o. gives limited liability. For IT/services income under €26,544/year, a paušalni obrt (lump-sum taxed) is the most tax-efficient option.
- 2 Register your obrt at the county administrative office (županiijski ured) or online at obrtni-registar.hr. Bring your OIB, ID, and €35–70 fee. You receive your registration number within 1–5 days.
- 3 Register with the Porezna uprava (Tax Administration) for income tax and obtain your PDV (VAT) number if turnover exceeds or will exceed €39,816/year.
- 4 Register for pension and health insurance contributions at HZMO and HZZO respectively — mandatory for all self-employed persons. Monthly contributions are due regardless of income.
- 5 Open a business bank account — required to keep business and personal finances separate (not legally mandatory for obrt but strongly recommended for accounting clarity).
- 6 Set up bookkeeping (knjiženje) — Croatia requires proper financial records. Use Croatian accounting software (e.g., FINTAX, 4D, RRIF, Minimax) or hire an accountant (knjigovoĐa). Paušalni obrt has simplified record-keeping.
- 7 Issue invoices (R1 račun for B2B, R2 for B2C) with your OIB, business address, and PDV details if registered. Electronic invoicing (e-račun) is becoming standard for public sector clients.
- 8 File monthly/quarterly PDV returns at ePorezna if PDV-registered. File annual income declaration (JOPPD form) or equivalent. Paušalni obrt pays quarterly lump-sum contributions.
Tax registration
Register with the Porezna uprava at porezna-uprava.gov.hr within 8 days of starting business activity. You receive your OIB as your tax ID. Paušalni obrt pays fixed quarterly tax (paušalni porez) based on annual turnover brackets. Regular obrt income is taxed as personal income at 20%/30%.
VAT threshold
€39,816 annual turnover. Once you exceed (or expect to exceed) this threshold, mandatory PDV registration is required. Voluntarily registering for PDV before reaching the threshold is possible if beneficial (allows VAT reclaim on business expenses). Croatian PDV: standard 25%, reduced 13%, super-reduced 5%.
Invoicing
All invoices must include: seller's full name/company name and address, OIB number, buyer's name and address, invoice number (sequentially numbered), date of issue and service delivery, description of goods/services, quantity and unit price, total ex-PDV, PDV rate and amount, total including PDV. Electronic invoices (e-račun) mandatory for B2G (business to government) since 2019 — use the FINA e-invoice system. Paper invoices still valid for B2B and B2C.
Social security
Self-employed persons must pay mandatory pension (mirovinsko) and health (zdravstveno) contributions regardless of income. Monthly pension contribution: approximately €250–400 depending on basis. Monthly health contribution: approximately €200–300. These are paid directly to HZMO (pension) and HZZO (health). Paušalni obrt contributions are lower and fixed. Self-employed persons are entitled to unemployment benefits only under limited conditions — consider private insurance.
💡 Croatia's paušalni obrt (lump-sum taxed sole trader) is one of the most attractive freelancer structures in the EU for lower-income self-employed: pay a fixed quarterly tax regardless of actual income, simplified accounting, and no PDV obligation below turnover limits. The threshold was €26,544 in 2025 — above this, regular taxation applies. Digital nomad visa holders may not be able to register as Croatian-tax-resident freelancers if working solely for foreign clients — seek specialist advice.
🏢 Business Structures
j.d.o.o. · Jednostavno društvo s ograničenom odgovornošću
Simplified limited liability company
€1 minimum (significantly reduced from the standard d.o.o.)
Min. capital
3–7 business days. Register online via eTVRTKA portal at hitro.hr. Faster with a notary.
Setup time
Liability: Limited — shareholders' liability is limited to their capital contribution.
Setup cost: €1 minimum capital + notary fees (€200–500) + court registration fee (~€110). Profit must be retained for reserve fund until €2,500 is reached.
Best for: Startups, small businesses, and entrepreneurs who want limited liability without the €2,500 minimum capital requirement of a standard d.o.o. Very popular for technology startups and freelancers upgrading from sole trader status.
d.o.o. · Društvo s ograničenom odgovornošću
Limited liability company (LLC)
€2,500 minimum share capital
Min. capital
5–14 business days. Required: notarial act (javnobilježnički akt), registration in the court register (sudski registar), and tax registration.
Setup time
Liability: Limited — shareholders not personally liable beyond their share contribution.
Setup cost: €2,500 minimum capital + notary fees (€500–1,500) + court registration fee (~€110) + potential legal fees (€1,000–3,000 for complex setups).
Best for: The most common business structure in Croatia for established businesses. Suitable for companies with employees, seeking investment, or requiring a credible legal structure for contracts with larger clients.
d.d. · Dioničko društvo
Joint-stock company / Public limited company
€25,000 minimum share capital
Min. capital
3–6 weeks including articles of association preparation and court registration.
Setup time
Liability: Limited — shareholders' liability limited to share value.
Setup cost: €25,000 minimum capital + notary + registration fees + legal fees (€5,000–20,000+).
Best for: Larger companies, those planning to list on the Zagreb Stock Exchange (ZSE), or raising significant capital from multiple investors. Required for certain regulated industries (banks, insurance companies).
j.t.d. · Javno trgovačko društvo
General partnership
€0 — no minimum capital
Min. capital
5–10 business days.
Setup time
Liability: Unlimited joint and several liability for all partners.
Setup cost: Minimal — notary and registration fees (~€300–500).
Best for: Two or more persons conducting business together without requiring limited liability. Common for small professional partnerships. Requires a partnership agreement.
k.d. · Komanditno društvo
Limited partnership
€0 — no minimum capital
Min. capital
5–10 business days.
Setup time
Liability: Mixed: general partners (komplementari) have unlimited liability; limited partners (komanditori) limited to their contribution.
Setup cost: Notary and registration fees (~€400–700).
Best for: Businesses where some partners want limited liability while others actively manage with full liability. Less common in modern Croatia.
Obrt · Obrt (Registrirani obrt)
Sole trader / Craft business
€0
Min. capital
1–5 business days. Register at the county office (županiijski ured) or online at obrtni-registar.hr.
Setup time
Liability: Unlimited personal liability.
Setup cost: Registration fee: €35–70 at county administrative office. Additional fees if a regulated trade licence (obrtnica) is required.
Best for: The simplest and cheapest business form. Ideal for tradespeople, craftspeople, freelancers, and sole practitioners. Paušalni obrt (lump-sum taxed sole trader) offers significantly simplified tax obligations for lower-income self-employed persons.
Business Setup
Unlock the complete Business Setup guide for Croatia — including every detail, document, tip and link you need.
Become a SupporterSupport the guide on Ko-fi · Unlocks every premium section, everywhere