Croatia at a glance
Croatia is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in Croatia
- d.o.o. (limited liability company) The standard form (drustvo s ogranicenom odgovornoscu): a separate legal entity with limited liability, EUR 2,500 minimum capital, and 100% foreign ownership allowed.
- j.d.o.o. (simple LLC) A low-cost simple limited company with EUR 1 minimum capital, up to five members. It sets aside a quarter of annual profit into reserves until capital reaches EUR 2,500, then converts to a regular d.o.o.
| Corporate tax | Corporate income tax is 18% standard, with a reduced 10% rate for companies whose annual revenue is below EUR 1 million. There are no significant local income taxes. |
|---|---|
| VAT rate | Standard VAT (PDV) is 25%, among the highest in the EU, with reduced rates of 13% and 5%. The domestic registration threshold rose to EUR 60,000 in 2025. |
| Dividends & payroll taxes | Dividends are taxed at around 12% for individuals. Personal income tax runs 20% and 30% with municipal variation built into the rates, and employer health contributions add 16.5% on gross salaries. |
| Minimum share capital | A standard d.o.o. requires EUR 2,500 of capital; the simple j.d.o.o. needs only EUR 1, paid in full. A d.d. (joint-stock company) requires roughly EUR 25,000. Capital is deposited into a temporary account before court registration. |
| Setup time | Via the online START platform a d.o.o. or j.d.o.o. can be formed in a few business days (the court registers within about 5 working days). For foreign founders using a power of attorney, the full process typically takes 2 to 4 weeks. |
| Remote setup | Partial. Croatian residents can incorporate fully online through the START platform with no notary. Foreign founders, especially non-EU nationals, generally cannot use START and instead incorporate remotely through a notarised power of attorney to a local lawyer. |
| Director / residency | No residency or nationality requirement. A d.o.o. can be 100% foreign-owned with a non-resident director, who must be a natural person. Residence is not required to incorporate or serve as director. |
| Banking options | Share capital is first deposited at a Croatian bank or FINA. Major banks include Zagrebacka banka (UniCredit), PBZ (Intesa), Erste, OTP and Raiffeisen. Wise and Revolut are used for daily operations, but a local IBAN is normally needed for the capital deposit. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
Croatia adopted the euro and joined Schengen on 1 January 2023, removing currency risk for EU trade. The 10% reduced corporate rate for companies under EUR 1 million of revenue is among the more competitive small-company rates in the EU.
How to register a company in Croatia
Step by step, this is how a Croatia formation actually runs:
- Pick d.o.o. or j.d.o.o.. The j.d.o.o. starts at EUR 1 with template articles and converts to a full d.o.o. as reserves build; the d.o.o. needs EUR 2,500.
- Use START or a notary. Residents incorporate online via START without a notary; foreign founders usually sign a notarised, apostilled power of attorney for a local lawyer.
- Deposit the capital. Capital goes to a temporary account at a Croatian bank or FINA before court registration.
- Court registration. The commercial court registers within about five working days once the file is complete.
- Tax, pension and health registrations. Register with the tax administration for CIT and VAT, and with the pension and health systems if employing.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
What company formation in Croatia costs
The START route keeps official costs low (tens of euros); the notarial route for foreign founders typically totals EUR 250 to 500 with translations. The j.d.o.o. carries token capital, the d.o.o. EUR 2,500. Accounting for a small d.o.o. usually costs EUR 100 to 200 a month.
Form your Croatian company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Croatia, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Croatia
Founders from outside the EU can own and run a Croatian company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Croatia up front, so there are no surprises.
Croatia fits founders operating on the Adriatic coast, tourism-adjacent businesses and EU founders who can use the fully online START route. Non-EU remote founders face the notary detour, so they should weigh Croatia against faster Balkan or Baltic options unless the local connection matters.
After registration: what Croatia expects each year
Annual financial statements go to FINA by the end of April for statistical purposes and for publication. The corporate tax return is due by that same season, VAT returns are monthly or quarterly, and the 10% small-company CIT band applies below EUR 1 million of revenue. Audit thresholds spare small companies.
Croatia and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so a Croatian company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Croatia against other countries, see company formation in Europe.