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EU and Eurozone member with competitive tax rates
Region
EASTERN EUROPE
Corporate Tax
18%
Setup Time
2 weeks
Currency
EUR
Croatia, a newer EU member state on the Adriatic coast, offers European market access with lower costs than Western Europe. The country's EU and Eurozone membership support company registration for businesses seeking business setup within the single market.
With a population of 3.9 million, Croatia provides Mediterranean lifestyle with European services. Croatian is the official language, with English common among younger professionals. The coastal climate is pleasant, with continental conditions inland.
Healthcare is available through mandatory insurance, with private options supplementing public care. Safety is excellent with low crime rates. The cost of living is moderate, lower than Western Europe but higher than non-EU neighbors.
The beautiful coastline, rich history, and EU integration attract both tourists and residents.
Corporate tax rate stands at 18% for larger companies, with 10% for small businesses. Personal income tax reaches 30%. VAT applies at 25% standard rate. Croatia joined the Eurozone in 2023, eliminating currency risk within the EU.
EU membership provides single market access and regulatory harmonization. Investment incentives exist for strategic projects. The developed tourism infrastructure supports service sector operations.
Company registration through the court registry is established. The d.o.o. (limited liability company) is the standard structure. Foreign ownership faces no EU restrictions.
Company formation takes approximately 2-4 weeks. Minimum capital is modest at HRK 20,000 (approximately EUR 2,650). At least one director is required. Annual compliance involves financial statement filing.
Croatia implements EU frameworks for crypto regulation. Virtual asset service providers must register for AML compliance. The national approach follows EU directives, with MiCA implementation upcoming.
The environment allows crypto business operation with appropriate registration and compliance.
The Ministry of Finance regulates gambling through licenses for casinos, betting, and online operations. The gambling license framework is functional, with established operators serving both domestic and EU markets.
EU passporting rules allow operations across member states from Croatian licensing.
The domestic market is small, requiring EU-wide or export focus. The workforce is educated but has experienced emigration to wealthier EU countries. Summer tourism seasonality affects some operations.
Banking access is good through local and EU banks. Professional services are developing. Croatia offers EU membership advantages at relatively lower costs.
Croatia suits tourism-related businesses, EU market entry operations, and companies seeking Eurozone positioning for their business setup.
Local: d.o.o.
Local: d.d.
Local: Podružnica
| Corporate Tax Rate | 18% |
| Personal Income Tax Rate | 36% |
| VAT / Sales Tax | 25% |
| Capital Gains Tax | 12% |
| Withholding Tax | 0% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | MEDIUM |
| Financial Privacy | LOW |
| Currency Controls | NONE |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | No |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $50,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | EU Travel Rule / MiCA compliant |
| Business Plan Required | Detailed program of activities, business model, client segments, geographic reach required |
| Personnel Required | CEO with crypto expertise, Chief Compliance Officer, Money Laundering Reporting Officer |
| Insurance Required | Yes |
| Insurance Details | Custodial insurance required for custody services under MiCA |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | ESMA MiCA register and HANFA supervised entities list |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Croatian Financial Services Supervisory Agency (HANFA) for CASPs; Croatian National Bank (HNB) for EMT/ART issuers |
| Licensing Fee | $0 |
| Licensing Fee Details | Application fees set by HANFA; exact fees depend on service scope and are subject to MiCA framework |
| Permitted Business Models | Crypto exchange, custody, trading platform, portfolio management, transfer services, advisory services |
| Permitted Activities | Exchange fiat-to-crypto, crypto-to-crypto, custody, trading, staking (subject to MiCA rules) |
| Restricted Activities | Privacy coins may face restrictions; algorithmic stablecoins subject to enhanced scrutiny |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |
| Derivatives Allowed | No |
| RWA Tokenization Allowed | Yes |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $4,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A for gambling |
| Business Plan Required | Detailed technical documentation, operational plan, player protection measures required |
| Personnel Required | Qualified management, responsible gambling officers, AML compliance personnel |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Ministry of Finance licensed operators list |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Ministry of Finance - Department for Games of Chance |
| Licensing Fee | $600,000 |
| Licensing Fee Details | €600,000 annual fee for land-based casinos; online/betting operators face similar high fees under 2026 reforms |
| Permitted Business Models | B2C casino, sports betting, online gambling (requires land-based license first) |
| Permitted Activities | Casino games, sports betting, slot machines, online gambling |
| Restricted Activities | Lottery is state monopoly (Hrvatska Lutrija); self-service betting terminals banned from 2026; servers must be located in Croatia |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $350,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant / EU PSD2 requirements |
| Business Plan Required | 3-year business plan, risk management systems, organizational structure, AML/CFT policies |
| Personnel Required | CEO, Compliance Officer, AML Officer, qualified management board |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity insurance required |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Croatian National Bank register of payment and e-money institutions |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Croatian National Bank (HNB) |
| Licensing Fee | $1,000 |
| Licensing Fee Details | Application fee payable to CNB; exact amount depends on license type. EMI €350,000 capital; PI €20,000-€125,000 capital depending on services |
| Permitted Business Models | Electronic Money Institution (EMI), Payment Institution (PI), Account Information Service Provider |
| Permitted Activities | E-money issuance, payment services, money remittance, payment accounts, acquiring |
| Restricted Activities | Banking services (deposit-taking, lending) require separate credit institution license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |