Croatia and Switzerland sign updated double taxation agreement

(Photo: Ministry of Finance)

A delegation from Croatia, led by Deputy Prime Minister and Minister of Finance Dr Marko Primorac, and a delegation from the Swiss Confederation, led by the Ambassador of Switzerland to Croatia, His Excellency Urs Wolfgang Wilhelm Hammer, signed a key protocol in Zagreb on 18 July 2025.

The protocol updates and amends the existing agreement between Croatia and Switzerland on the avoidance of double taxation with respect to taxes on income and on capital, the Croatian Ministry of Finance said in a statement.

This update comes in response to significant changes in the field of international taxation, including revisions to the Organisation for Economic Co-operation and Development (OECD) Model Tax Convention, which both countries use as a basis for their bilateral tax treaties.

The need for the protocol also stems from the implementation of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS), and the adoption of the OECD’s global minimum tax rules, known as the Second Pillar.

These developments aim to prevent tax avoidance and ensure fairer taxation worldwide.

The protocol introduces comprehensive amendments to align the existing agreement with new international standards, improving transparency and strengthening measures to prevent tax evasion and tax avoidance.

(Photo: Ministry of Finance)

Following the signing, both countries will begin their respective national procedures for the ratification of the protocol.

It is expected to enter into force by the end of this year, depending on when the ratification processes are completed.

The updated agreement marks a significant step in enhancing tax cooperation between Croatia and Switzerland, ensuring both countries are aligned with modern global practices in tax governance.