Expat Tax Guide to Croatia

Thinking of swapping your morning commute for a stroll along the Adriatic? You’re not alone—Croatia has become a magnet for US expats chasing sunshine, seafood, and a slower pace of life. From the historic streets of Dubrovnik to the café-lined promenades of Split, life here offers charm in spades. Imagine enjoying fresh brudet by the sea or sipping rakija in a quiet stone courtyard—this isn’t vacation, it’s your new Tuesday. But alongside the beauty comes a key reality: navigating Croatian and US tax laws as an expat takes planning. Whether you’re freelancing from Hvar or retired in Istria, you still need to think about the IRS and Croatian tax authorities. This US-Croatia Expat Tax Guide is here to make all of that clearer—so you can focus on soaking up sunsets instead of stressing over forms.

Who Needs to File US Expat Taxes?

US Tax Deadlines

Which Tax Forms Do Expats Need to File?

Why Choose Croatia?

Croatian Visas for US Expats

Croatian Taxes 101

US-Croatia Expat Tax Agreements

Tax Benefits for US Expats in Croatia

3 Things to Know About Self-Employment in Croatia

Retirement in Croatia

Simplify Your US Tax Filing in Croatia

Who Needs to File US-Croatia Expat Taxes?

If you’re a US citizen or Green Card holder living in Croatia, you likely still need to file a US tax return—no matter where you earn your income. The US taxes based on citizenship, not residency, which means moving abroad doesn’t end your IRS obligations. This includes so-called “Accidental Americans,” like those born in the US to foreign parents or with US citizenship through a parent, often without realizing the tax implications. Even if all your income is earned in Croatia and taxed there, you’re still required to report it to the US.

You may not owe anything thanks to credits and exclusions, but filing is still mandatory if your income crosses the IRS thresholds. In 2025, you’ll need to file your 2024 US taxes if:

Filing Status	Income Threshold
Single	$14,600
Married Filing Jointly	$29,200
Married Filing Separately	$5
Self-Employed	$400
Qualifying Widow(er)	$29,200
Head of Household	$21,900

The good news is, with tools like the Foreign Earned Income Exclusion and Foreign Tax Credit, you can often avoid double taxation. Still, filing is a must if you want to stay compliant—and avoid nasty surprises from the IRS later.

US Tax Deadlines

Even while enjoying life in Croatia, your US tax deadlines still follow you across the Atlantic. To help you keep everything straight, here’s a handy table of key filing dates for US expats, including automatic extensions and an important cutoff point for the FBAR.

Deadline	Date
Standard Filing Deadline	April 15th
Automatic Extension for Expats	June 16th
Deadline for Expats Filing an Extension (file by June 15th)	October 15th
FBAR Deadline for Expats	October 15th
Deadline for Expats if you Filed a Second Extension	December 15th

Stay up-to-date with occasional reminders in your inbox.

Fallen Behind on Your US Taxes?

If you’ve missed past filings, don’t panic—there’s a unique IRS program just for that. The Streamlined Procedure was created for expats who didn’t realize they needed to file US taxes while living abroad. If you can certify that your failure to file was non-willful (in other words, not deliberate), the IRS lets you catch up without penalties. You’ll typically need to file the last three years of tax returns and six years of FBARs, but that’s often all it takes to get back in good standing. Many expats have used this to reconnect with the IRS without facing harsh consequences. However, it’s essential to use the procedure before the IRS contacts you, or you become ineligible and could have to deal with significant financial penalties. So don’t delay!

Which Tax Forms Do Expats Need to File?

No matter where you live, there is always plenty of paperwork to keep the IRS happy. Here are the five most important forms you’ll likely need to file:

• Form 1040 – Your Federal US Tax Return: No matter where you live, the IRS wants to hear from you. Form 1040 is your standard individual income tax return.
• Form 2555 – Foreign Earned Income Exclusion (FEIE) If you meet either the Physical Presence Test or Bona Fide Residence Test, the FEIE allows you to exclude a certain amount of foreign earned income from your US tax bill.
• Form 1116 – Foreign Tax Credit (FTC) If you’ve paid tax to a foreign government, Form 1116 helps you claim a dollar-for-dollar credit against your US tax liability.
• FinCEN Form 114 – FBAR (Foreign Bank Account Report) Have you had more than $10,000 combined in foreign accounts and assets at any time during the year? You’ll need to file this online form with the Treasury Department—not the IRS. Think bank accounts, investment accounts, and even some pension funds.
• Form 8938 – FATCA (Statement of Specified Foreign Financial Assets) FATCA is a cousin to the FBAR but has different thresholds and is part of your regular tax return. If your foreign financial accounts and assets exceed certain limits (starting at $200,000 for single filers abroad), Form 8938 is required.

Each of these forms plays a different role in helping you stay compliant, avoid penalties, and (ideally) reduce your US tax bill. These forms, and many more, are included with every MyExpatTaxes plan so you can be assured that, no matter what your situation, we have you covered.

Read more: Top 6 Tax Forms For Expats

Why Choose Croatia?

Many US expats are falling in love with Croatia—and it’s easy to see why. This small country, with 2500 miles of coastline and close to 1200 islands, packs in an incredible mix of natural beauty, historic charm, and relaxed living. Along the Adriatic coast, towns like Dubrovnik and Split offer stunning sea views, medieval walls, and vibrant old towns that feel like movie sets. The islands, including Hvar and Korčula, are perfect for beach days, wine tasting, and scenic hikes. Inland, places like Plitvice Lakes and the hilltop village of Motovun give you waterfalls, forests, and peaceful countryside living.

Quality of Life & Healthcare

Croatia also scores high on quality of life, with a strong sense of community, walkable cities, and fresh Mediterranean cuisine. The country ranks 15th safest in the world according to the Global Peace Index.

The high-quality healthcare is affordable and all permanent residents contribute to the universal public healthcare system. If you work for a Croatian employer, they will cover your contributions. Co-payments for treatment are significantly lower than in the US, ranging from €1.32 to see a general practitioner, to over €500 per visit for more complex treatments. Many expats also choose private insurance for faster access and English-speaking providers.

Cost of Living

The cost of living is lower than in the US though prices have increased somewhat since Croatia adopted the Euro in 2023. The average cost of living is around 1,200€ a month for singles, and around 3,000€ for a family of four. Though bear in mind that if you work for a Croatian company, the average salary is around 1400€. Public transport makes it easy to get around without a car.

From its morning espresso rituals in sunlit squares to its unhurried coastal towns and Roman ruins, Croatia is a welcoming and beautiful place to call home. For many Americans, it’s the perfect mix of comfort, adventure, and everyday joy.

Croatian Visas for US Expats

Before diving into the US–Croatia expat tax rules, let’s review some of the common visas available for US expats:

• Short Stay: No visa is required for a stay of up to 90 days within a 180-day period for business or tourism. You’ll need a valid passport with a blank page. From 2026 onwards, when the European Travel Information and Authorization System comes into effect, you’ll need ETIAS to visit Croatia and any other European countries in the Schengen area.
• Stay and Work Permit: For those who have been offered a job by a Croatian employer. This permit typically requires the employer to secure a labour market test and the opinion of the Croatian Employment Service.
• Digital Nomad: For those working remotely for themselves or a company registered outside of Croatia, who are not supplying services to Croatia. This visa is valid for up to 18 months, renewable for 6 months, and can exempt you from paying Croatian taxes.
• Highly Qualified (EU Blue Card): Available with a work contract, proof of higher education, and proof you meet the conditions to exercise a regulated profession.
• Permanent Residence: available after an uninterrupted period of legal residence of five years.

All non-permanent visas require private health insurance for the duration of your stay.

Croatian Taxes 101

Residency Criteria

In Croatia, you’re considered a tax resident if you own or rent property in Croatia for an uninterrupted period of at least 183 days over two calendar years, or spend at least 183 days in Croatia over 2 consecutive calendar years. If you have property in Croatia and abroad, residency is determined by where your family resides, or where you go to work. Tax residents are subject to taxation on their worldwide income, while non-residents are taxed only on income sourced within Croatia.

Personal Income Tax (PIT)

Croatia employs a progressive personal income tax (PIT) system based on income and place of residence or habitual abode. Each local government sets its own progressive tax rates annually, ranging between 15% and 35.4%.

Tax Year

The Croatian tax year aligns with the calendar year, running from January 1 to December 31. Tax returns are due by the end of February for the previous year.

Social Security and Health Insurance

Both employers and employees contribute to Croatia’s social security system.

Employers Contribute 16.5% for the employee’s health insurance.

Employees Contribute 20% (15% to the first pillar, 5% to the second pillar) toward their pension insurance. The taxable base depends on gross salary: lower salaries get partial deductions, while anything over €1,300 is fully taxed up to a cap of €9,360 monthly or €112,320 annually (for 2024).

US-Croatia Expat Tax Agreements

The United States and Croatia signed their first comprehensive tax treaty in 2022. This treaty aims to prevent double taxation and fiscal evasion, providing clarity on taxing rights over various income types, including dividends, interest, royalties, and pensions. It will allow US citizens and residents to claim credits for Croatian taxes paid, thereby reducing their US tax liability, and vice versa for Croatian residents. However, it’s important to note that, as of now, the treaty has been signed but not yet ratified, nor is it in effect.

There is currently no US-Croatia totalization agreement. Totalization agreements determine where social security taxes are due, avoiding double taxation on social security benefits. These agreements also facilitate the coordination of social security credits so that benefits are not lost due to time divided between countries. With no agreement in place, you may have to pay social security taxes in both countries. The upside is that you may be able to draw a pension from social security in both countries if you have accrued enough credits in each. You can also claim your Croatian social security taxes as a foreign income tax credit on your US tax return.

Careful pension planning is essential if you’re planning to spend some of your working life in Croatia. MyExpatPlanning can help you understand how your US and local retirement funds are taxed on your US tax return.

Tax Benefits for US Expats in Croatia

While there is no US-Croatia Tax Treaty, the IRS provides a range of benefits that can reduce the impact of double taxation. These tax benefits can drastically reduce or even eliminate your US tax liability.

Foreign Tax Credit (FTC)

The Foreign Tax Credit is a US tax benefit that allows you to offset your US taxes with the taxes paid in a foreign country.

Unlike the FEIE, the FTC can be used on both passive and earned income. However, taxes paid on passive income can only be applied to passive income, and earned can only be applied to earned; you can’t mix these categories.

To calculate your FTC, you calculate the total taxes you have paid in foreign taxes, convert to USD, and apply to your US tax bill. Simple as that!

Foreign Earned Income Exclusion (FEIE)

The Foreign Earned Income Exclusion is a tax benefit that can be used to exclude up to $126,500 from your US tax bill. As the name suggest, the FEIE can only be used against foreign earned income, such as salary or self-employment income. Passive income like rental income and dividends is not eligible.

If you qualify for the FEIE and have eligible foreign housing costs in excess of $20,240, you may be able to deduct them with the Foreign Housing Exclusion.

Child Tax Credit

The Child Tax Credit (CTC) is a non-refundable credit. It lets you deduct up to $2,000 per qualifying child from your US tax bill. First, it lowers the tax you owe. Then, if any credit remains, you may qualify for a refund of up to $1,700 per child through the Additional Child Tax Credit (ACTC).

The ACTC requires earned income of at least $2,500. If you use the Foreign Earned Income Exclusion, you’re not eligible for the ACTC. To get around this, many expats use the Foreign Tax Credit (FTC) instead.

3 Things to Know About Self-Employment in Croatia

• If you earn $400 or more annually from self-employment, you must file a US tax return. This applies no matter where you live, as the US taxes citizens on their worldwide income.
• As the US and Croatia don’t have a totalization agreement, you’ll owe 15.3% in US Self-Employment Tax on your net earnings. This tax helps you earn credits toward US Social Security and Medicare.
• In Croatia, social contributions are mandatory for self-employed residents. You’ll need to register with Croatian authorities and pay into the Croatian Pension and Health Insurance systems.

Croatian Property for US Expats

US citizens can purchase property in Croatia due to a reciprocity agreement between the two countries. However, buying agricultural land requires special permissions. You’ll need to secure a Croatian tax ID (OIB), and a local bank account can make the process simpler.

Like most countries, property prices vary widely by location. In 2025, the average apartment price in Zagreb is 2,830€ per square meter, in Dubrovnik 4,151€, while coastal homes can be significantly higher.

In addition, expect to pay a 3% Real Estate Transfer Tax on resale properties or 25% VAT on new constructions, agency fees (2-4%), and legal expenses (1-2%).

A new annual property tax was introduced in 2025 with rates set by local governments within a range of between 0.6€ to 8€/m². Owner-occupied properties and those in long-term leases (10+ months) will be exempt.

Read More: 8 Things to consider when buying property abroad

Retirement in Croatia

There’s plenty to recommend Croatia for your golden years. Of course, the weather is a a top selling point. On the Mediterranean coast, you can expect warm summers and mild winters. Or you might choose to go Inland for a continental climate with hot summers and cold winters. And if you want to connect with nature, Croatia has it all, from the Adriatic coast with its crystal-clear waters, to lush forests with breathtaking waterfalls.

Croatia offers a high quality of life with a lower cost of living. Most US retirees can enjoy a comfortable lifestyle for upwards of 1,500€ a month, depending on location. Healthcare is affordable, with public insurance options and private plans available.

Until the US-Croatian Tax Treaty is ratified, you will be subject to Croatian taxation on your US pension income. After the personal allowance, pension income is taxed at 20%–30% according to your income. A 50% tax base reduction applies to foreign pensions, meaning only half of your pension income is subject to tax. However, you can request an exemption from Croatian pension tax by submitting form INO-DOH along with a certificate of taxes paid in the US.

Retirees often choose coastal towns like Split, Dubrovnik, or islands for their scenic beauty and relaxed pace. Inland cities like Zagreb offer vibrant cultural scenes and modern amenities.

Simplify Your US-Croatia Expat Tax Filing

You made it to the end of the US-Croatia Expat Tax Guide and might be feeling a tad overwhelmed with all the info. Especially since there’s no tax treaty or totalization agreement between the two countries, navigating US-Croatian expat tax rules takes careful attention.

Thankfully, filing your US-Croatia expat taxes doesn’t have to be stressful. Our award-winning expat tax software is the easiest way to stay compliant and avoid costly mistakes while living abroad.

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