Last updated: February 2026
This guide reflects Croatian capital gains tax law applicable in 2026.
Croatia capital gains tax for individuals is generally 12% and applies to gains from financial assets (shares, bonds, derivatives, crypto-assets) if sold within two years of acquisition. Real estate gains are generally taxable at 20% if sold within two years, unless specific exemptions apply.
Below is a complete breakdown of Croatia Capital Gains Tax rules in 2026.
Croatia Capital Gains Tax on Financial Assets
Under Croatia Capital Gains Tax, capital gains from financial assets are taxed at:
12% + applicable municipal surtax (if any)
This applies to gains from:
- Shares
- Bonds
- Investment funds
- Derivatives
- ETFs
- Cryptocurrency
The structure of Croatia Capital Gains Tax makes holding period planning especially important for investors.
The 2-Year Holding Rule
Capital gains are taxable only if the asset is sold within two years of acquisition.
If held longer than two years:
The gain is generally exempt.
This 2-year exemption is one of the most important features of Croatia Capital Gains Tax.
Loss Offsetting
Capital losses may be offset against capital gains realized in the same calendar year.
Unutilized losses generally cannot be carried forward indefinitely under Croatia Capital Gains Tax provisions.
Reporting Deadline
Capital gains must be reported to the Croatian Tax Administration (Porezna uprava) by:
28 February of the year following the transaction.
Taxpayers are responsible for self-reporting and payment under Croatia Capital Gains Tax compliance rules.
Capital Gains Tax on Real Estate in Croatia
Real estate follows a different rule structure within Croatia Capital Gains Tax.
Tax Rate
Real estate capital gains are generally taxed at:
20% (plus local surtax, if applicable)
When Is Real Estate Gain Taxable?
A real estate gain is taxable under Croatia Capital Gains Tax if:
- The property is sold within 2 years of acquisition
- The property was not used as a primary residence
Real Estate Exemptions
Capital gains on real estate are generally exempt if:
- The property was owned for more than 2 years
- The property served as the seller’s primary residence
This rule is frequently misunderstood by foreign property investors.
Capital Gains Tax Croatia for Companies
For companies, capital gains are not taxed separately.
They are included in corporate income and taxed at:
- 10% (revenue up to €1,000,000)
- 18% (above €1,000,000)
See our full guide on Croatia Corporate Tax for corporate rules.
Cryptocurrency Capital Gains in Croatia
Cryptocurrency gains are treated as financial assets under Croatian tax law.
The same 12% rate + 2-year rule applies.
If crypto assets are sold within 2 years: Taxable at 12%.
If held longer than 2 years:Generally exempt.
In practice, crypto transactions often trigger reporting issues due to incomplete transaction history documentation.
Capital Gains Tax Croatia for Foreigners
Foreign individuals are taxed differently depending on residency.
Croatian Tax Residents
Taxed on worldwide capital gains.
For Non-Residents
Taxed only on Croatian-source gains.
Foreigners relocating to Croatia often unintentionally trigger tax residency.
For a broader overview, see our guide on Tax in Croatia for Foreigners.
Capital Gains Tax Croatia for Retirees and New Residents
Foreign retirees relocating to Croatia should carefully consider the timing of asset disposal before and after becoming Croatian tax resident.
Once classified as a Croatian tax resident, capital gains on foreign financial assets may fall within Croatian tax jurisdiction under worldwide taxation principles.
This includes gains from:
- Foreign shares
- ETFs
- Investment funds
- Cryptocurrency
- Foreign real estate
The two-year holding exemption for financial assets still applies. However, residency timing can significantly affect overall tax exposure.
In practice, many retirees sell assets after relocation without reviewing whether Croatian tax residency has already been triggered.
Because Croatian residency is determined under tax law criteria (183-day rule, permanent home, or center of life), asset disposal timing should be reviewed before establishing long-term residence.
For a broader structural overview of residency-based taxation, see our guide to the Croatia Tax System.
Retiree Real Estate Considerations
The real estate angle is particularly important for retirees.
If a foreign retiree sells property located abroad after becoming Croatian tax resident, the gain may fall within Croatian tax scope, depending on:
- Applicable Double Taxation Treaty
- Primary residence status
- Ownership period
In practice, retirees selling foreign real estate after establishing Croatian tax residency may trigger capital gains taxation depending on treaty provisions.
Treaty analysis is essential because some treaties allocate taxing rights exclusively to the country where the property is located, while others may allow credit mechanisms.
Failure to plan sale timing properly may result in unnecessary dual reporting obligations.
Interaction With Double Taxation Treaties
Croatia has an extensive treaty network.
If you are taxed abroad on the same capital gain:
- Treaty provisions may allocate taxing rights
- Foreign tax credit may apply
Cross-border analysis is recommended before disposal of significant assets.
Interaction with Broader Tax Exposure
Capital gains tax should not be assessed in isolation.
It interacts with:
- Personal income tax rules
- Corporate structuring (if assets are held via company structures)
- VAT implications for certain real estate transactions
- Cross-border reporting requirements
For corporate disposals, see our guide to Croatia Corporate Tax.
For VAT implications in property or business transfers, review our article on Croatia VAT Rate.
Tax Consequences of Transferring Property to an LLC
Many Croatian property owners consider placing real estate into a company (typically a d.o.o.) for liability protection or joint ownership. However, under Croatian tax rules, transferring property to a company is generally not treated as a simple administrative change it is usually treated as a taxable disposal.
For a detailed breakdown of how LLC transfers are taxed including when such transfers may be treated as a deemed sale read our full guide: What Are the Tax Consequences of Transferring Property to an LLC?
Summary Table – Capital Gains Tax Croatia (2026)
| Asset Type | Rate | 2-Year Rule |
|---|---|---|
| Financial assets | 12% | Exempt if held >2 years |
| Crypto | 12% | Exempt if held >2 years |
| Real estate | 20% | Exempt if held >2 years or primary residence |
| Companies | 10% / 18% | Included in CIT |
Frequently Asked Questions – Capital Gains Tax Croatia
Is there capital gains tax in Croatia?
Yes. Financial assets are taxed at 12% if sold within 2 years.
Is real estate capital gains tax 20%?
Yes, generally 20% if sold within 2 years.
Are shares exempt after 2 years?
Yes, gains are generally exempt if held longer than 2 years.
Does Croatia tax crypto gains?
Yes, at 12% if sold within 2 years.
Do foreigners pay capital gains tax in Croatia?
Residents are taxed on worldwide gains. Non-residents only on Croatian-source gains.
Why This Matters for Investors
The 2-year exemption rule significantly changes investment strategy in Croatia.
Short-term trading creates taxable exposure.
Long-term holding often eliminates tax.
Before selling assets or property in Croatia, investors should assess:
- Holding period
- Residency status
- Treaty protection
- Corporate vs personal structure
Capital gains tax planning should be aligned with the broader Croatia Tax System to avoid unintended exposure.
Advising Foreign Investors and Retirees in Croatia
Mandracchio Capital advises international investors and expatriates on capital gains structuring, real estate transactions, and cross-border tax exposure in Croatia.
This overview is for informational purposes only and does not constitute legal or tax advice.
