The corporate tax in Croatia
The corporate tax in Croatia is 12% of profits for companies with an annual income lower than 3 million Croatian kuna (HRK).
Let’s compare this to other countries:
– In Italy, companies are subject to a corporate tax rate of 27.9%.
– In Germany, it is even higher ranging anywhere between 30-33%.
– Austria is the lowest, but it still stands at 25%.
So now we have this data, let’s calculate the tax in Croatia you’ll have on your Candy Brick investment property.
First, we need to calculate your profit before tax. That’s the income minus the costs. Your income is €30,000 as guaranteed by the Candy Brick Rental Guarantee. If you opt for the Candy Brick Full Management Guarantee you then pay only 20% of your income to look after the rental of your villa, while others can charge up to 40%.
This gives you a profit before tax of €24,000. On this you pay the corporate tax in Croatia of 12%, as it is less than 3 million Croatian kuna (HRK). That works out as €2,880. This gives you a profit after tax of €21,120, that you can withdraw as a dividend.
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