Currently, Croatia does not tax foreign residents on their retirement and social security pensions. However, since tax laws and regulations change frequently, it is strongly advisable to consult a tax professional to determine your precise tax liability prior to moving anywhere abroad.

If you do not earn a salary or reflect an employment income in Croatia, then the tax situation is favorable, particularly for retirees.

Croatia has no wealth tax, and pensions, interest income, capital gains and inheritance and gift taxes are tax free.

Foreigners are subject to tax on the following forms of Croatian income:

    Income from employment that is received in
    Croatia or from work in Croatia 

    Income from a business in Croatia 

    Income from real estate in Croatia

    Income from one’s own or chartered marine
    ships/aircraft used for dispatching goods or people
    from Croatian ports/airports 

    Income from independent personal activities that
    are carried out in Croatia or abroad, and are used 
    for the performance of an activity in Croatia 

    Income from capital or insurance that originates
    from within Croatia.

Income tax rates range from 15% to 45%, depending on your income. 

Corporate income tax is typically 20%.

Municipalities also charge an income surtax.   That surtax can amount to as much as 30%,  with as little as 10% being charged in villages with a population of less than 30,000.