Every individual who is a tax resident of the Republic of Croatia is obligated to report all income earned abroad, regardless of the country of origin and whether there is a double taxation avoidance agreement in place. This includes all types of income – from employment, property, capital, copyrights, and other sources. Such income is reported using the INO-DOH form, and if tax has already been paid abroad, the individual may submit the INO-IZJAVA to request that the foreign tax be credited against the Croatian tax liability.

A person remains a tax resident of Croatia until they officially initiate the procedure to change their residency status with the Croatian Tax Administration, even if they physically reside abroad. If no tax has been paid abroad, the taxpayer must calculate and pay the tax in Croatia and submit the JOPPD form within 30 days of receiving the income.

When completing the INO-DOH form, the taxpayer must include details such as the source country, type of income, income amounts, taxes paid, and other relevant information. Foreign taxes can only be credited if an official certificate from the foreign tax authority is provided.

In cases such as consultancy services, royalties, or dividends, the taxation rules depend on the existence of a valid international agreement. If such an agreement exists, double taxation can usually be avoided through either the credit or exemption method, depending on the circumstances.

For currency conversion, the Croatian National Bank’s official exchange rate on the payment date is used. It is important to observe the deadlines – the INO-IZJAVA must be submitted within 8 days of receiving the income, and the INO-DOH by January 31 for the previous year.

The purpose of these rules is to ensure fair taxation and prevent individuals from being taxed twice on the same income, in line with Croatian laws and international agreements.