5-year income tax exemption for Croatians moving back – all you need to know
- by croatiaweek
- in Business

New Tax Exemption Law: What returning Croatians need to know
As of 1 January 2025, a new tax relief measure came into effect for returning Croatian citizens, exempting them from paying income tax on employment income (wages) for a period of five years.
According to the Croatian Tax Administration, the following conditions need to be met.
1. Eligibility Based on Status:
The individual is a Croatian emigrant or a descendant of a Croatian emigrant who lived in overseas or European countries, holds Croatian citizenship, and has registered residence in Croatia.
Alternatively, the individual is a Croatian emigrant, a family member, or a descendant of a Croatian emigrant from overseas countries (without Croatian citizenship) and has been granted temporary residence for the purpose of immigration or returning to Croatia, or has been granted permanent residence under the Foreigners Act.
Recognised Overseas Countries:
Argentina, Australia, Brazil, Bolivia, Chile, Ecuador, South Africa, Canada, New Zealand, Paraguay, Peru, United States, Uruguay, Venezuela.
Recognised European Countries:
Austria, Belgium, Denmark, France, Ireland, Italy, Luxembourg, Netherlands, Norway, Germany, Sweden, Switzerland, United Kingdom.
2. Minimum Overseas Residence:
The individual has resided abroad continuously for at least two years, as verified by records from the Ministry of the Interior (MUP).
This includes individuals who, at least two years ago, registered their temporary or permanent departure from Croatia or those who never had registered residence in Croatia.
3. Not Seconded Abroad:
The individual was not seconded abroad by a Croatian employer.
Procedure for Determining Eligibility
The Croatian Tax Administration will verify eligibility based on data provided by the Ministry of the Interior. This will be done automatically as part of the annual income tax determination process, without requiring a special application from taxpayers.
Exception:
If a taxpayer believes they qualify for the exemption, they may submit Form ZPP-DOH as evidence. This must be done by the end of February for the previous year or by the statutory deadline for objections (31 July of the current year for the previous year).
Important Exclusions
This tax relief cannot be combined with:
Reductions in income tax prepayments for local government units classified as Group I and the City of Vukovar.
Annual income tax reductions for individuals under 30 years of age.