EMPLOYER OF RECORD IN CROATIA
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Croatia at a glance
EUR
Currency, Euro, €
4.19M
Population
$107.11B
GDP
Hire in Croatia
Croatia offers political and economic stability for foreign investors. Croatia remains toward the top of the list as one of the most politically stable countries in the world, according to the U.S. News and World Report.
Croatia is a preferred international destination for foreign business development due to its experienced workforce, large English-speaking population, and favorable tax incentives promoted by the government.
Croatia has a simplified business registration process, with few formalities and much less bureaucracy compared to other countries, ensuring a quick start and entry into the business market for foreign investment.
Croatia offers direct and effortless gateways to prime markets in Western Europe, Eastern Europe, and Asia, on prominent channels by land, air, and sea.
Croatia offers political and economic stability for foreign investors.
Wages and Salaries in Croatia
In Croatia, the current minimum gross monthly wage is EUR623.70 for 2022. The minimum wage in Croatia is determined once a year for the following year.
Tax and Social Security in Croatia
In Croatia, a resident taxpayer is anyone with a permanent or usual residence in the country. Resident taxpayers pay taxes on total earned income in Croatia and abroad. Nonresident taxpayers do not have a permanent or usual residence in Croatia but earn an income in the country that is subject to income tax. The taxable base for a non-resident taxpayer is the income earned in one calendar year in Croatia.
The basic personal deduction, which is not taxable, is EUR533.
- The following tax rates apply to taxpayers beginning January 1, 2021:
- Up to EUR4,000 is taxed at 20%
- Over EUR4,000 is taxed at 30%
- The corporate income tax rate in Croatia is 18%.
- Contributions for social security insurance are calculated on the basis of an employee’s monthly wage. As of 2022, Croatia’s current social security rate charged on income for employees is 36.5% in total: 20% paid by the employee and 16.5% paid by the employer.
Employment benefits in Croatia
According to Welcomm, the European Union’s Asylum, Migration, and Integration Fund, the Croatian benefits system provides state-funded entitlements within the social welfare system, including financial assistance and support to Croatian citizens and residents. Social services for those in need are granted through social welfare centers to vulnerable individuals who do not have sufficient means to cover their basic living needs.
The social insurance in Croatia consists of health, pension, unemployment, and work accident insurance, as well as maternity and family benefits.
Leave Entitlements in Croatia
- In Croatia, an employee is entitled to a minimum of four weeks of statutory annual leave. Minor employees and employees subject to harmful impacts, such as firefighters or mine and explosive handlers, are entitled to five weeks.
- Annual leave that is longer than the minimum statutory period can be regulated by an employment contract, a collective bargaining agreement, or employment bylaws.
Payroll in Croatia
An employer of record in Croatia helps make payroll seamless.
- The Croatian tax year is the calendar year. The tax filing deadline is the end of February of the current year for the previous year.
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