Opening a company in Croatia: locals, foreigners, freelancers and digital nomads

At a glance: d.o.o. with 2,500 euros capital (a quarter paid) or j.d.o.o. from 1 euro, court register via the online START service or a notary in 1 to 2 weeks, corporate tax 10 percent up to 1 million euros of revenue (18 above), VAT from 60,000 euros, lump-sum crafts to 60,000 euros, digital nomad permit for 18 months at 3,622.50 euros a month. Legal forms. Craft (obrt): no capital, registered in the crafts register. D.o.o.: minimum capital 2,500 euros, a quarter of each cash share and at least 625 euros paid before registration. J.d.o.o.: 1 to 2,499.99 euros fully paid, up to five founders, 25 percent of profit to reserves until 2,500. D.d. (public): 25,000 euros. Registration. Every founder and director needs a Croatian tax number (OIB). Companies are entered in the commercial court register through the START e-service (fully online with Croatian or eIDAS credentials, model articles, cash only), the HITRO.HR counters at FINA, or a notary (required for non-EU founders, custom articles and in-kind contributions, 300 to 700 euros). Court fees are tens of euros (halved for e-filings since June 2026), publication free; a court decision usually within five working days of a complete filing; two to four weeks to a working bank account. Typical d.o.o. 500 to 1,200 euros excluding capital, j.d.o.o. 100 to 300. Crafts register through e-Obrt in one to three days, free, then the tax office within eight days. Taxes 2026. Corporate tax 10 percent for revenue up to 1 million euros, 18 above. Dividends 10 percent withholding to foreign companies (zero for EU parents), 12 percent for individuals. VAT 25 percent (13 and 5 reduced); registration from 60,000 euros turnover. Personal income tax set by each municipality: 15 to 23 percent up to 60,000 euros and 25 to 33 above (Zagreb 23 / 33); personal allowance 600 euros a month; capital income 12 percent. Freelancers and the self-employed. Lump-sum craft (pausalni obrt) up to 60,000 euros of receipts, not VAT-registered: fixed annual tax by band from 203.40 euros (receipts to 11,300) to 1,080 euros (50,000 to 60,000), paid quarterly, one simple return by 15 January. Contributions 2026 on the base of 797.20 euros a month: 290.98 euros a month (pension 20 percent, health 16.5), lower if the craft is a side activity to employment. Above 60,000 euros you keep income-tax books or form a j.d.o.o. Foreigners. EU/EEA citizens register residence after three months and trade freely. Non-EU founders: temporary stay for business purposes, where a company owner invests about 26,545 euros, employs three Croatian citizens at the average wage and draws 1.5 times the average salary (a craft owner invests about 13,272 euros, staff conditions waived for the first permit); up to one year, renewable; alternatively a work permit as employee of your own company after a labour-market test. No resident director requirement (a work permit is needed if you actively work in Croatia), 100 percent foreign ownership, Croatian registered office (virtual offices allowed), capital account before registration. Branch of a foreign company. Podruznica registered through a notary in the court register with the parent's resolution, register extract, articles, representative appointment and certified translations; representatives need an OIB; one to three weeks at a cost similar to a d.o.o. Taxed as a permanent establishment at 10 or 18 percent, no remittance tax, parent accounts published. A j.d.o.o. or d.o.o. subsidiary is preferred. Digital nomads. Yes, improved in March 2025: temporary residence for digital nomads working for foreign employers or their own foreign company, income of at least 2.5 times the average net salary, 3,622.50 euros a month in 2026 (or a bank balance of 12 to 18 months' worth), plus about 145 euros a month per family member; up to 18 months, not extendable, new application after six months abroad; fees about 56 euros for the permit plus 41 for the biometric card; decisions in eight to 30 days; income from the remote work is exempt from Croatian income tax; family may join; no work for Croatian clients. Changed recently. VAT and lump-sum ceilings raised to 60,000 euros with new bands (2025); income-tax rate ranges widened (2025); contribution base 797.20 euros (2026); Fiscalisation 2.0: receiving e-invoices mandatory from 2026, issuing for everyone from 2027, all B2C invoices fiscalised; nomad permit extended to 18 months (2025); halved court fees for e-filings (June 2026); a 2027 increase of lump-sum tax for high earners is proposed. Figures checked October 2026 from the Tax Administration, HITRO.HR, the Ministry of the Interior and Croatian advisers; amounts change every January. Confirm with a licensed adviser in Croatia before you file.