Croatia’s new tax-free investment account with up to €250,000 limit

(Photo: HNB)

ZAGREB, 24 September 2026 (Hina) – Croatia is preparing to introduce a new investment account designed to encourage citizens to move more of their savings into long-term investments, with tax-free investment gains and a potential maximum balance of €250,000.

The proposed Croatian Investment Account was presented in the Croatian Parliament on Tuesday by Matej Bule, State Secretary at the Ministry of Finance.

Under the draft legislation, every adult Croatian tax resident would be able to open one account and initially deposit up to €200,000.

If no money is withdrawn during the first five years following the initial deposit, the account holder would then be allowed to contribute an additional €50,000, bringing the potential total to €250,000.

Investment gains made through the account would not be subject to tax.

Bule said the measure is intended to encourage citizens to diversify their savings and increase their participation in the capital market.

Croatian households currently hold significant amounts of money in bank deposits, while participation by small investors in the capital market remains relatively limited.

Focus on lower-risk investments

According to Bule, investments available through the account would focus on relatively lower-risk financial instruments, including shares of listed companies and bonds issued by Croatia, other EU countries and OECD members.

He stressed that investment would still involve more risk than keeping money in a bank deposit, but said the account would not be intended for the riskiest types of financial market investments.

The proposal would also introduce diversification requirements.

Where total investments exceed €20,000, no more than 50% of the portfolio could be invested in financial instruments issued by the same entity.

At least 20% of the portfolio would also have to be invested during the year in financial instruments connected with Croatia.

Account holders would be able to withdraw their money at any time without paying tax on investment gains, according to the proposal.

Bule said similar investment accounts have already been introduced in 13 EU member states.

Government wants more household savings invested

The proposal has received support from opposition SDP as well as the ruling HDZ.

SDP MP Boris Lalovac said the account could provide a way for citizens to make long-term investments that could serve as an additional form of retirement savings, while avoiding tax and administrative procedures associated with investment.

HDZ MP Marko Pavić said the objective was to encourage long-term investment rather than short-term trading.

He said Croatian citizens currently hold around €91 billion in savings and that the government wants households to become more active participants in the capital market.

Bule also highlighted the need to improve financial literacy if the new system is to achieve its objectives. He said the possibility of introducing financial literacy into school curricula could also be considered.