Croatian Tax Laws Question

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johnlark Member

Member since 19 September 2018

johnlarkMember19 September 2018 18:16:25

Hello,
I was in Croatia 4 months for 2017 for holiday.
In that period I didn't know I was gonna be in croatia also a few more months in 2018 (also for holiday).

I have read now online that if you are in croatia 6 months in 2 years, you are considered tax resident in croatia. It is not clear to me whether this means I am considered tax resident for 2017 or 2018 or both.

Given the fact that in 2017 I was in croatia about 4 months and I didn't know I was gonna come back to croatia I didn't declare my incomes here, but I did my tax declaration in my home country for 2017.

Questions:

1- If I spend 6+ months in total in between 2017 and 2018 am I considered tax resident for the fiscal year 2017 or fiscal year 2018 or both?

2- If I am considered tax resident in croatia for fiscal year 2017, was I expected to declare my money last year? But last year I was in croatia only 4 months and (not knowing I would come back in 2018) I was not yet to be considered tax resident, so it made no sense to declare anything.

3- Will I receive some letter from croatian autorities in my home country address saying, hey you were here in these 2 years for more than 6 months in total so you should declare your international income here?

I am a bit confused about this since I came here just on a long holiday and then now I found out about this. I have contacted some lawyers, which are all very happy to charge a tourist like me about 150 euro per hour for a consultation, which I happily declined.

Maybe some of you in this forum know more about this and if I am worried for nothing.

Any help would be appreciated.

Katie187 Member

Member since 08 November 2017

Katie187Member25 September 2018 17:10:46

Hi John,

I am not 100% sure but i believe in order to be classed as a tax resident on worldwide income in Croatia your 183 days (6 months) is only relevant if either of the following is true;

1. Property Rental
The accommodation you use, has you on a long term rental contract (non tourist contract - as this indicates your stay is not temporary). The other thing that indicates this is if the specified accommodation is at your exclusivity (so nobody else stays there for 183 days+ or from the time you left to the time you come back - which would be written in contract). Most tourists move around and therefore with each hotel, apartment they stay are usually on tourist contracts that the owners fill in. If you were on a non tourist contract you would have seen a contract.聽聽聽

2. Physical presence
This is the other non residential or work way you can become a tax resident聽 but it occurs i believe when you spend 183 days consecutively which can cross over two years ie. August 2017-Febuary 2018 continuously. If you are returning for holidays - i believe this is irrelevant, the only time it isn't is for reason 1.聽聽聽

The above is also dependant on nothing else putting you into the tax resident status... ie... you are not a聽 Croatian resident, owner of property, or have a work contract in Croatia.

Hope this helps you.. From the situation you described I don't see you having a problem. Maybe someone else can back me up based on the information I provided.

All the best, Katie

fixfireleo Active member

Member since 13 September 2018

fixfireleoActive member05 November 2018 15:16:10

I am an American considering a one year stay in Croatia (if that is possible).聽 I will be retired, however I will be renting out my condo back home.聽 After condo fees, taxes and insurance, I expect to make about $700 USD per month.聽 Based on your comment above, if I rent an apartment and stay in one apartment for the whole year, will I have to declare income to Croatia?聽 I know I will have to declare my income in the USA however, the amount will be under the minimum amount to pay taxes on.聽

Also, can you get by on English and Google translate?聽 Any nice areas that are more likely to have English speakers within 30 minutes of the beach?聽

Also, if I plan to travel some and leave Croatia for a few weeks at a time to visit nearby countries, does that affect taxes or visa requirements or anything else?聽 Thank you.

Rob

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