In short
The usual company is the d.o.o. (limited liability company) with minimum capital of €2,500, at least a quarter paid in before registration; a simple j.d.o.o. needs just €1. Every founder needs an OIB. Founders who are not Croatian or EU/EEA citizens set up through a Croatian notary, and the court register must decide within 5 working days (e-Tvrtka filings within 24 hours). Profit tax is 10% for revenue under €1 million and 18% above; VAT is 25%. A company does not give its owner residence, and there is no US–Croatia tax treaty in force yet.
Croatian company: key facts
Last verified 28 September 2026| d.o.o. minimum capital | €2,500; at least a quarter (€625) paid in before registration# Source: Invest Croatia: setting up a company · Official Gazette NN 40/2019: amendment of the Companies Act |
|---|---|
| j.d.o.o. (simple LLC) | €1 minimum capital; up to 5 members and 1 director; a quarter of profit goes to reserves# Source: Invest Croatia: setting up a company · Official Gazette NN 40/2019: amendment of the Companies Act |
| OIB for founders | Every founder needs an OIB — non-residents get it at a tax office, through a representative or by e-mail# Source: Tax Administration: assigning OIB to foreign persons |
| Notary | Founders who are not Croatian or EU/EEA citizens set up through a notary (online-only routes are not open to them)# Source: gov.hr: setting up a limited liability company · HITRO.HR: e-Tvrtka service |
| Court registration | Decision within 5 working days; e-Tvrtka filings from a notary within 24 hours# Source: Court Register Act (consolidated) · HITRO.HR: e-Tvrtka service |
| Profit tax | 10% for revenue under €1 million; 18% above# Source: Profit Tax Act (consolidated), art. 28 |
| Dividend withholding tax | 10% to non-residents (no US treaty reduction); EU parents exempt# Source: PwC Worldwide Tax Summaries: Croatia withholding taxes |
| VAT | 25% standard; 13% and 5% reduced# Source: Tax Administration: consumption taxes (VAT) |
| VAT registration threshold | €60,000 in the previous or current year (since 1 January 2025)# Source: Tax Administration: consumption taxes (VAT) |
| Non-EU director | Since June 2026, if all directors are non-EU nationals one must apply for a stay-and-work permit within 30 days of registration# Source: Official Gazette NN 55/2026: amendment of the Foreigners Act |
| US–Croatia tax treaty | Not in force: signed Dec 2022, protocol Apr 2026, awaiting US Senate approval (Sep 2026)# Source: US Treasury: United States and Croatia sign protocol to income tax treaty |
| Formation cost | about €400 notary and court fees for a basic d.o.o.; €1,000–2,000 with a lawyer estimate# Source: Đina: setting up a company in Croatia for foreigners |
Not American?
Canadians, Australians, Brits and other non-EU citizens: the same rules apply
Croatian company law is the same for every non-EU founder, so Canadians, Australians, New Zealanders and Brits register a d.o.o. exactly as described here. Only a few points differ:
- Canada
- Australia
- New Zealand
- United Kingdom
- Japan
- South Korea
- + other visa-free countries
| Living in Croatia | A company does not give you residence. Non-EU owners and directors who work in Croatia need a stay-and-work permit. |
|---|---|
| Home-country tax | US citizens are taxed on worldwide income and have extra filings (Form 5471, FBAR, NCTI) — and there is no US–Croatia treaty in force yet. Other nationals usually aren't taxed this way. |
| Tax treaty with Croatia | Many countries have a tax treaty with Croatia that lowers the 10% dividend withholding tax — check yours. |
| Documents from abroad | Need an apostille; the US, Canada (since 11 Jan 2024), the UK, Australia and NZ issue them.Source: HCCH: Apostille Convention status table |
At a Glance
Croatian Company Formation in Numbers
Why Croatia
Why Americans Register Companies in Croatia
Joining the euro in 2023 removed currency risk for businesses while keeping Croatia's cost advantages over Western Europe. Professional service fees and labour costs remain below Western European levels, making Croatia an affordable euro base.
A growing tech and digital economy and one of the world's most English-proficient workforces (2nd in the EF English Proficiency Index 2025) make Croatia increasingly competitive for start-ups and service businesses. Zagreb has a real start-up scene, and the coast attracts remote-first businesses.
Business Structures
Which Entity Type Is Right for You?
For most foreign founders the d.o.o. — the Croatian limited liability company — is the right choice. The j.d.o.o. is a simplified version for very small businesses.
Limited Liability Company
d.o.o. — Društvo s ograničenom odgovornošću
The standard choice for small and medium-sized businesses and foreign founders. Owners' liability is limited to their contributions, and directors do not have to live in Croatia.
- Min. capital
- €2,500 (€625 paid in)
- Directors
- 1 or more
- Liability
- Limited to contributions
Simple LLC
j.d.o.o. — Jednostavno društvo s ograničenom odgovornošću
A simplified d.o.o. with €1 minimum capital, up to 5 members and 1 director. A quarter of each year's profit must go into reserves until capital and reserves reach €2,500.
- Min. capital
- €1
- Members
- Up to 5
Joint Stock Company
d.d. — Dioničko društvo
For larger businesses seeking investors or a listing on the Zagreb Stock Exchange. Requires a management board and a supervisory board, adding governance cost.
- Min. capital
- €25,000
- Liability
- Limited to contributions
Sole Proprietorship
Obrt
For individuals trading in their own name — simple, with no minimum capital, but with unlimited personal liability. For a non-EU national it also depends on having a residence and work permit.
- Min. capital
- None
- Liability
- Unlimited personal liability
Tax Environment
Croatia's Corporate Tax Structure
Croatia has a two-tier profit tax — 10% for companies with annual revenue under €1,000,000 and 18% above. Dividends paid to non-resident shareholders are subject to 10% withholding tax; individuals resident in Croatia pay 12% on dividends.
The United States and Croatia signed an income tax treaty in December 2022 and a protocol in April 2026; both were sent to the US Senate in September 2026 but are not yet in force. Until then, dividends paid to US shareholders bear Croatia's full 10% withholding tax, and US–Croatia double taxation is relieved only through foreign tax credits.
US citizens and Green Card holders are taxed on worldwide income. Owning a Croatian d.o.o. usually means filing Form 5471 and an FBAR if your foreign accounts exceed $10,000 in total. From tax years starting in 2026, GILTI has been renamed net CFC tested income (NCTI). Both Croatian rates — 10% and 18% — are below the 18.9% high-tax threshold, so undistributed profits can be taxed in the US each year without planning. Consult a US international tax adviser before incorporating.
Step-by-Step Process
How to Register a Company in Croatia
Registering a d.o.o. means getting an OIB for every founder, signing the founding documents before a notary, paying in the capital and registering with the commercial court. The fully online routes (START and remote e-registration) are open only to Croatian or EU/EEA citizens, so Americans use the notary route — often via e-Tvrtka, which the court processes within 24 hours.
Choose your structure Decision
For most foreign founders the d.o.o. is right; the j.d.o.o. suits very small businesses. Check with a Croatian lawyer if your activity is regulated.
Get an OIB for every founder Required first
Every founder — including foreign individuals and companies — needs a Croatian OIB before registration. Non-residents can apply in person at a tax office, through a representative with a power of attorney, or by e-mailing the form and a copy of their ID to the Tax Administration.
Choose and check the company name Name check
The name must be unique in the court register and include the legal form (d.o.o. or j.d.o.o.). You can check availability in the court register online.
Sign the founding documents before a notary Notary
The articles of association (or a standard-form founding deed for a single-member d.o.o. or j.d.o.o.) are signed before a Croatian notary. Founders who can't travel can sign through a power of attorney — a POA signed in the US needs a notary and an apostille, plus a certified translation.
Pay in the capital Banking
Open a bank account and pay in at least a quarter of each cash contribution — at least €625 for a €2,500 d.o.o. The bank's confirmation goes with the application.
Register with the commercial court 5 working days
The notary files the application with the commercial court, often electronically through e-Tvrtka. The court must decide within 5 working days (e-Tvrtka filings within 24 hours). The company receives a court registration number (MBS) and its own OIB, and entries are published free of charge on the court register website.
Register with the Tax Administration Tax
Register the company with the Tax Administration. VAT registration is required once turnover exceeds €60,000 in the previous or current year; voluntary registration below that is possible.
Directors and employees If applicable
Since June 2026, if all directors are non-EU nationals, one of them must apply for a stay-and-work permit within 30 days of registration. If you hire staff, they are registered with the pension and health insurers; employees pay 20% pension contributions and employers 16.5% health contributions.
Costs & Fees
What Does It Cost to Register a Company in Croatia?
Croatia is mid-range for EU company formation costs. The main variable costs for non-residents are legal help, the notary and accounting.
| Cost item | Notes | Est. amount |
|---|---|---|
| Notary and court fees | Founding documents and registration of a basic d.o.o.; a j.d.o.o. with standard forms is cheaper. | about €400 |
| Minimum capital | €2,500 for a d.o.o. (at least €625 paid in before registration); €1 for a j.d.o.o. | from €625 |
| Formation with a lawyer or agent | OIB, power of attorney, documents and coordination for a foreign founder. | about €1,000–2,000 |
| Accounting | Bookkeeping, annual accounts and tax returns for a small d.o.o. | about €200–400 a month |
Estimates for 2026 from commercial providers. Source: Đina: company formation for foreigners · FiskAI: bookkeeping prices 2026
Ongoing Obligations
Post-Registration Requirements
Croatian companies have standard EU obligations for accounting, reporting and governance.
Annual financial statements and tax return
Annual financial statements are filed with FINA (by 30 April for statistics; within 6 months of the year end for publication), and the profit tax return is due within 4 months of the year end.
Directors
A d.o.o. needs at least one director registered in the court register. Directors can be foreign nationals, but a non-EU director who works in Croatia needs a stay-and-work permit — and since June 2026 one must apply within 30 days if all directors are non-EU nationals.
Accounting and audit
Companies keep double-entry books under the Accounting Act. An audit is required if a company exceeded 2 of 3 thresholds in the previous year: €2.5 million assets, €5 million revenue and 25 employees.
Beneficial owners
Owners with more than 25% of shares or votes (or other control) are registered in FINA's beneficial ownership register within 30 days of formation, and the data must be kept up to date.
Expert Notes
What Americans Should Know Before Registering in Croatia
A company is not a residence permit
Owning a d.o.o. does not let you live in Croatia. Owners and directors need a stay-and-work permit, which requires about €26,500 invested, at least 3 Croatian full-time employees and a salary of 1.5 times the average gross wage. Remote workers with a foreign company may be better served by the digital nomad stay.
Get your OIB first
Every founder needs an OIB before the company can be registered. Non-residents can get it at a tax office, through a representative or by e-mail — plan for it early.
Plan for the 18% rate
The 10% rate applies only while revenue stays under €1,000,000. Build both rates into your projections if you expect fast growth.
25% VAT is among the EU's highest
If you sell to Croatian consumers, the 25% standard VAT rate affects your prices. For B2B sales to VAT-registered EU businesses it is largely a pass-through.
No US treaty yet — check the US side
Without a treaty in force, dividends to US owners bear 10% Croatian withholding tax, and both Croatian profit tax rates fall below the US high-tax threshold. Speak to a US cross-border tax adviser before you incorporate. Directories like LocalVouch can help you find vetted, English-speaking Croatian accountants to work alongside your US adviser.
Registering a Croatian company is right for you if…
- You want a euro-area EU company with costs below Western Europe.
- Your revenue will stay under €1,000,000 for a while, so the 10% profit tax applies.
- You want a business base in Croatia's tourism, tech or services economy — and have a separate plan for residence.
- You need an EU company for contracts, invoicing and single-market access.
- You have taken US tax advice on NCTI and the missing US–Croatia treaty.
We work with trusted Croatian corporate lawyers and accountants who specialise in companies for non-EU founders — from the OIB and notary to banking, tax registration and ongoing compliance, including coordination with your US tax adviser.
FAQ
Frequently asked questions
What is the most common company type for foreigners in Croatia?
The d.o.o. (društvo s ograničenom odgovornošću), Croatia's limited liability company. Minimum capital is €2,500, of which at least a quarter (€625) must be paid in before registration. The simplified j.d.o.o. needs €1 but has limits (up to 5 members, 1 director, profit reserves).
What is the corporate tax rate in Croatia?
10% for companies with annual revenue under €1,000,000 and 18% above. Dividends paid to non-residents bear 10% withholding tax — with no US treaty in force, US shareholders pay the full 10%.
How long does it take to register a company in Croatia?
Once documents are signed before a notary, the commercial court must decide within 5 working days; filings through e-Tvrtka are registered within 24 hours on working days. Getting OIBs and signing documents from abroad usually take longer than the registration itself.
Do I need to live in Croatia to register a company there?
No. Foreigners can own and manage a d.o.o. without living in Croatia; every founder needs an OIB. But a company does not give residence, and since June 2026, if all directors are non-EU nationals, one must apply for a stay-and-work permit within 30 days of registration.
When do I need to register for VAT in Croatia?
When turnover exceeds €60,000 in the previous or current year (the threshold since 1 January 2025, up from €40,000). The standard rate is 25%, with reduced rates of 13% and 5%. Voluntary registration is possible below the threshold.
Does the US have a tax treaty with Croatia?
Not yet in force. A treaty was signed in December 2022 and a protocol in April 2026; both were sent to the US Senate in September 2026 and still need approval and ratification.
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