Croatia plans new 50% tax on excessive profit margins for big companies

ZAGREB, 11 September 2026 (Croatia Week) – Croatia is proposing a one-off tax on excessive profit margins earned by certain large and medium-sized companies during 2026 as part of a package of measures aimed at addressing inflation.

The proposed measure would apply to companies considered capable of influencing inflation through their pricing, with the Government estimating that around 1,800 companies could be affected.

The tax would apply only to taxpayers subject to corporate profit tax that generate more than 50% of the value of their goods and services in Croatia.

How the new tax would work

Under the proposal, a company would be considered to have generated an excessive profit margin if its margin in 2026 is more than 15% higher than its own average profit margin over the previous three tax years – 2023, 2024 and 2025.

The excessive margin would then be taxed at a rate of 50%.

The profit margin would be calculated as a percentage based on adjusted profit in relation to adjusted revenue reported in the company’s tax return.

Finance Minister Tomislav Ćorić said the measure was intended to discourage companies from using inflationary conditions to increase prices and generate what the Government considers excessive margins.

The Government describes the measure as a one-off anti-inflation measure for the 2026 tax year.

Wider tax package

The excessive-margin proposal forms part of a wider package of tax changes submitted to Parliament. Other measures include the planned introduction of a Croatian Investment Account with tax advantages for citizens, changes to pension taxation, amendments affecting higher-income flat-rate trades and changes to flat-rate taxation for tourist accommodation.

The Government is also proposing amendments to VAT legislation to bring Croatia into line with new EU rules for the digital economy from 1 January 2027.

The proposals must now go through the parliamentary process before they can become law.