Business Permits & Incorporation for Foreigners in Zadar

Corporate Tax Return

Profit Tax Return (Form PD), filed electronically via the e-Porezna portal

Deadline

Due by 30 April of the year following the tax period (for calendar-year filers)

E Invoicing 2026

Croatia is rolling out 'Fiscalization 2.0' from 1 January 2026, introducing mandatory e-invoicing for B2B and B2G transactions on top of the existing B2C fiscalization regime

Annual Financial Statements

GFI-POD (balance sheet, profit & loss, notes) filed with FINA, also due by 30 April

Citation Note

Corporate income tax return (PD form): Filed electronically via e-Porezna. Due by April 30.

Citation Note 2

Croatia is preparing to implement Fiscalization 2.0, a major overhaul in its invoicing and tax-reporting system set to begin January 1, 2026.

When Used

Chosen once revenue exceeds the flat-rate cap or when actual deductible expenses are large enough that lump-sum taxation is no longer favorable; requires proper bookkeeping and generally an accountant

Tax Treatment

Taxed under Croatia's progressive personal income-tax bands rather than a flat rate

Citation Note

An obrt is taxed under personal income tax rules (20%/30% progressive rates as of 2025), and the owner is personally liable for all business debts.

Common Thresholds

Typically considered once annual revenue approaches or exceeds EUR 60,000 (the VAT threshold), when there are significant deductible expenses to claim, when personal-asset liability protection is wanted, or when corporate clients require contracting with a legal entity rather than a sole trader.

Process Note

Moving from an obrt to a d.o.o. is not a simple conversion — it requires closing the sole trader and forming a brand-new legal entity.

Citation Note

Usually when revenue exceeds 60,000 EUR or when you have significant expenses to deduct.

Period

per month

Amount USD Max

228

Amount USD Min

114

Currency Local

EUR

Amount Local Max

200

Amount Local Min

100

Note

Covers bookkeeping, VAT returns, payroll (JOPPD) forms, and annual financial statements for a small company; most d.o.o. owners outsource this to a local accounting firm

Citation Note

The typical cost is 100 to 200 EUR per month for a small company, covering bookkeeping, VAT returns, JOPPD forms, and annual financial statements.

VAT

Not required to register for VAT while under the EUR 60,000 threshold

Bookkeeping

No formal double-entry bookkeeping — just a simple turnover/traffic log (knjiga prometa / KPR) and an annual PO-SD form due by 15 January

Eligibility

Available for annual gross revenue up to EUR 60,000; covers most freelance service activities (IT, design, consulting, translation, photography, tutoring, etc.)

Tax Mechanism

The tax authority assumes costs are 85% of revenue and taxes only the remaining 15%, producing an effective income tax of roughly 1.8% of gross revenue, on top of fixed monthly social contributions.

Combined Effective Burden

Roughly 11–13% of gross revenue in total once contributions and the flat income tax are combined

Monthly Social Contributions

€291

Approximate flat monthly pension + health insurance contribution when the flat-rate obrt is the sole/primary source of income; fixed regardless of actual earnings.

Citation Note

It is open to annual revenue up to EUR 60,000, with flat monthly contributions of about EUR 291.

Citation Note 2

The practical effect is an income tax rate of roughly 1.8% on your actual gross revenue.

Key Bottleneck

For non-EU founders specifically, corporate bank account opening (KYC/AML checks) is repeatedly flagged as the step most likely to extend the timeline beyond the court registration itself.

Full Operational Setup

Formation service providers consistently describe a realistic end-to-end timeline of roughly 2–4 weeks for a foreign founder to go from notary appointment to a fully operational company with an active bank account, once OIB issuance, document translation/apostille, and bank KYC checks are factored in.

Court Registration Only

Official HITRO.HR / e-Justice guidance states the Commercial Court can register a company within a few business days (commonly cited as 2–5 working days) once complete, correctly notarized documentation is submitted electronically.

Core Incorporation Steps

• Choose and reserve a company name (checked against the Court Register / via a HITRO.HR counter); name must be in Croatian or another EU/EEA official language in Latin script.
• All founders (or a notarized power of attorney holder) attend a Croatian public notary (javni bilježnik) to sign and certify the founding documents; foreign nationals must present a passport, and a certified court interpreter must be present if a founder does not speak Croatian.
• Obtain an OIB (Croatian personal tax ID number) for each founder/director — issued by the Tax Administration, typically within one to three working days for individuals with a passport and purpose documentation.
• Deposit the share capital (or the required 25% portion for a d.o.o.) into a temporary bank/FINA account and get proof of payment.
• The notary electronically forwards the notarized founding documents to a HITRO.HR office / the competent Commercial Court for entry into the Court Register (Sudski registar).
• Once approved, the company receives its Court Register decision and OIB; HITRO.HR can also handle simultaneous registration with the Croatian Bureau of Statistics (activity/NKD code).
• Open the company's permanent business bank account and transfer the share capital from the temporary account; register the company with the Tax Administration (and for VAT if applicable), plus the pension (HZMO) and health insurance (HZZO) systems.
• Obtain a company stamp (pečat) if required by your bank or contractual counterparties (not universally mandatory but still common in practice).

Official Government Links

• https://www.hitro.hr/en/how-to-start-a-limited-liability-company/
• https://www.hitro.hr/en/e-service/
• https://investcroatia.gov.hr/en/founding-a-company/
• https://e-justice.europa.eu/topics/registers-business-insolvency-land/business-registers-eu-countries/hr_en

Documents Typically Required

• Valid passport for each foreign founder/director
• OIB (Croatian tax ID) for each founder and director
• Notarized founding act / articles of association (Croatian language, or certified translation for foreign-language documents)
• Proof of share capital deposit
• Registered business address in Croatia
• Power of attorney (notarized/apostilled) if a founder incorporates remotely without attending in person

Detail

Foreign individuals and companies can fully own a Croatian company with no Croatian shareholder, director, or local sponsor mandated for a standard d.o.o. or j.d.o.o.

Status

Not required for standard incorporation