Banks & Finances Croatia

The most foreigner-friendly banks in Croatia stand out for their approach to providing services to non-residents, English language support, and simplified account opening processes:

Zagrebačka banka (ZABA): The largest bank in Croatia, part of the UniCredit group; has a specialized Center for non-residents staffed with employees experienced in working with foreigners; offers services in English and other languages.

Privredna banka Zagreb (PBZ): The second-largest bank in the country, part of the Italian Intesa Sanpaolo group; offers high-quality service to foreign clients; provides English language support and convenient online banking.

Erste & Steiermärkische Bank: Part of the Austrian Erste Group; offers services oriented towards foreign clients and has significant experience working with non-residents.

Raiffeisenbank Austria (RBA): Part of the Austrian Raiffeisen group; pays special attention to non-residents, offering English language support and convenient online banking.

OTP banka: Belongs to the Hungarian OTP group, actively works with foreign clients; offers competitive rates and English language support.

Hrvatska poštanska banka (HPB): The largest bank with Croatian capital, offers affordable rates and support for foreign clients; English language support.

Main advantages of listed banks for foreigners: English language support: All the mentioned banks have the option for service in English.

Flexibility in requirements: Minimal document package for account opening.

Services for non-residents: Multi-currency accounts, international transfers, access to mortgage programs.

Required documents

Passport: A valid passport for identity verification.

Taxpayer Identification Number: A Croatian tax number, which can be obtained from the local tax office. You need to fill out an application and provide identification.

Proof of residence: A document confirming your current address. This can be a utility bill, rental agreement, or bank statement. 

Residence permit or visa: If planning a long stay, the bank may request confirmation of your legal status in the country.

Account opening process

Selecting a bank: Various banks operate in Croatia. Study the service conditions, rates, and services to choose the most suitable option.

Branch visit: Open an account in person by visiting the selected bank branch. Some banks may offer online account opening, but personal presence is usually required for identity confirmation.

Providing documents: Present the above-mentioned documents to the bank employee for verification and processing.

Filling out a form: Complete an account opening application and other necessary forms provided by the bank.

Waiting for approval: After verifying the documents and application, the bank will approve the account opening. Processing times vary from a few days to a week.

Receiving account details and card: After approval, you will receive account details and, if necessary, a debit card. Cards are usually delivered by mail within a week.

Opening a bank account in Croatia is an important step for effectively managing your finances while staying in the country. Carefully prepare the necessary documents and select a bank that suits your needs.

Cash withdrawal process

Finding an ATM: ATMs are widely available in Croatia, many of which accept cards from international payment systems like Visa, Mastercard, and others. ATMs can be found in banks, shopping malls, streets, and tourist areas.

Inserting the card and entering the PIN: After inserting the card into the ATM, choose your preferred language (English is usually available) and enter your PIN.

Selecting amount and currency: Choose the amount to withdraw. Some ATMs may offer a currency conversion option (DCC), immediately showing the amount in your card's currency. However, using DCC may be less favorable due to additional fees and less favorable exchange rates. It's recommended to choose the local currency withdrawal option (euro) for a better exchange rate.

Operation Completion: Upon confirming the transaction, retrieve cash, your card, and a receipt (if needed).

Fees and Charges

ATM Fee: Some banks in Croatia charge a fixed fee for cash withdrawals from foreign cards.

Your Bank's Fee: Your home bank may impose additional fees for international transactions. It is recommended to clarify the service terms with your bank in advance.

Exchange Rate Difference: Currency conversion may occur at your bank's rate during cash withdrawals, which can differ from the market rate.

Recommendations

Avoid frequent small withdrawals: To minimize fees, plan for large withdrawals less frequently than making frequent small transactions.

Use ATMs from major banks: ATMs from major banks are generally more reliable and provide information in English.

Check on-screen notifications: Before confirming the transaction, carefully read the ATM screen messages about possible fees and currency conversion terms.

Contact your bank: Inform your bank about the planned use of your card abroad before traveling to Croatia to avoid transaction blocks for security reasons.

Bank Transfer (SWIFT)

Most Croatian banks provide international transfer services via the SWIFT system. To do so, you need to visit a bank branch or use online banking.

 

Required Information

- Full name and address of the recipient.

- Recipient's banking details: bank name, address, SWIFT/BIC code, and account number (IBAN).

- Fees: The amount of the fee depends on the bank and the transfer amount. It's advisable to check the rates directly with your bank.

- Timelines: The transfer usually takes from 1 to 5 business days, depending on correspondent banks and the destination country.

 

Money Transfer Systems (Western Union, MoneyGram)

These services allow money transfers without the need for opening a bank account. Transfers can be made through agent locations or online.

Required Information

- Full name of the recipient.

- Country and city of receipt.

Fees: The fee depends on the transfer amount and destination country. Exact rates can be found on official websites or service points.

Timelines: Transfers are usually available for pickup within minutes after sending.

Online Payment Systems (PayPal, Wise)

These platforms allow money transfers online using bank cards or accounts. Registration in the system and linking payment details is required.

Required Information

Email address or phone number of the recipient (for PayPal).

Recipient's banking details (for Wise).

Fees: Fees vary depending on the amount, currency, and payment method. It's recommended to review the rates on the official websites of the services.

Timelines: Transfers can take from a few minutes to several business days, depending on the chosen method and currency.

Recommendations

Consider restrictions: Some countries have restrictions on receiving international transfers. Ensure the selected method is available in the recipient's country.

Take note of taxation: In some cases, international transfers may be subject to taxes. Consult financial experts regarding this matter.

Mortgage for Foreigners

EU Citizens: Citizens of European Union countries can purchase property in Croatia under the same conditions as Croatian citizens and have access to mortgage loans in local banks.

Non-EU Citizens: For non-EU citizens, the process of obtaining a mortgage may be more complicated and require additional approvals. Some banks offer mortgage loans to foreigners, but the terms may vary.

Loans for Foreigners

Permanent Residents: Foreigners with permanent residence in Croatia have a higher chance of obtaining various types of loans, including consumer and mortgage loans.

Temporary Residents and Non-Residents: Obtaining a loan for this category of foreigners may be challenging, and banks usually consider such applications on a case-by-case basis.

Bank Requirements

Documents: A passport, proof of income, taxpayer identification number, and documents confirming residency status are usually required.

Financial Stability: Banks assess the applicant's creditworthiness, considering income level, employment, and credit history.

Collateral: In the case of a mortgage loan, the purchased property typically serves as collateral.

Recommendations

Consultation with Banks: It is recommended to contact several banks to compare terms and understand their policies regarding foreign borrowers.

Legal Support: Consult real estate specialists and lawyers to ensure all legal aspects are observed when applying for a loan or mortgage.

In Croatia, it is preferable to use cashless payment methods for large purchases such as property or a car. This is due to both practical considerations and legal restrictions on the use of cash.

Restrictions on Cash Use

According to Croatian law, there are restrictions on cash payment amounts. For large purchases, such as real estate or cars, using cash may be restricted or prohibited. Exact limits and rules may change, so it is recommended to check current details with a bank or legal advisor.

Recommended Payment Methods for Large Purchases

Bank Transfer: The most common and safe method of payment for large purchases. The buyer transfers funds from their bank account to the seller's account.

Use of Letters of Credit: A banking tool that ensures the safety of the transaction for both parties.

Recommendations

Consultation with Professionals: Before making a large purchase, it is recommended to consult a lawyer or financial advisor to ensure compliance with all legal norms and protect your interests.

Check Restrictions: Confirm with a bank or specialist the current restrictions on the use of cash for large purchases in Croatia.

Transaction Documentation: Ensure you have all necessary documents confirming the legality and completion of the transaction to protect your rights in the future.

In Croatia, various tools for saving, accumulating, and investing are available and may be of interest to both locals and foreigners.

Bank Deposits

Term Deposits: Many Croatian banks offer term deposits with fixed interest rates for a specified period. Interest rates and terms may vary depending on the bank and the amount of the deposit.

Savings Accounts: Designed for regular contributions and fund accumulation with the possibility of partial withdrawal. Interest rates are usually lower than term deposits but offer greater flexibility.

Real Estate Investments

Advantages: Croatia, especially its coastal regions, attracts investors due to a developed tourism market and steady growth in property prices. Real estate investments can yield rental income and potential profit from property value appreciation.

Details for Foreigners: EU citizens may purchase property under the same conditions as Croatian citizens. Citizens of other countries must obtain permission from the Ministry of Justice and Administration of Croatia.

Stock and Securities Market Investments

Croatian Stock Exchange: Provides an opportunity to trade shares of Croatian companies. Participation requires opening a brokerage account through a licensed broker.

International Markets: Through international brokers, one can invest in foreign stocks, exchange-traded funds, and other instruments.

Business Investments

Starting Your Own Business: Croatia offers favorable conditions for startups and small businesses, particularly in the tourism and IT sectors. Foreign investors can register a company and benefit from various government support programs.

Venture Investments: Capital investment in promising Croatian startups can be attractive for experienced investors willing to take higher risks.

Government Bonds

Description: The Croatian government periodically issues bonds to finance its projects. Investments in government bonds are considered relatively safe and can yield stable income.

Recommendations for Investors

Before making investment decisions, it is recommended to consult with professional advisors familiar with the Croatian market.

In Croatia, the tax obligations of foreign citizens depend on their residency status and sources of income.

Determination of Tax Residency

Resident: A person who owns or has property at their disposal in Croatia continuously for at least 183 days during one or two calendar years (residing in the property is not a determining factor). Physically present in Croatia for at least 183 days during one or two calendar years. Short breaks in stay, up to one year, are not counted.

Non-resident: A person who does not meet the above criteria is considered a non-resident for tax purposes.

Personal Income Tax

Residents: Taxed on worldwide income, i.e., income earned both in Croatia and abroad.

Non-residents: Required to pay tax only on income derived from sources in Croatia.

Income Tax Rates

Tax rates vary from 25% to 35.4% depending on the taxpayer's place of residence or habitual abode in Croatia.

Value Added Tax

Standard rate: 25%.

Reduced rates: 13% and 5% for certain goods and services.

Property Tax

Real Estate Transfer Tax: The acquirer of real estate in Croatia is required to pay real estate transfer tax if the transaction is not subject to VAT. The tax base is determined by the market value of the property at the time the tax liability arises.

Double Taxation Avoidance Agreements

Croatia has agreements with a number of countries to prevent double taxation. These agreements regulate where specific types of income are taxed and may provide tax benefits.

Recommendations for Foreign Citizens

Consultation with Tax Specialists: It is recommended to consult with professional advisors to accurately determine tax obligations based on individual circumstances.

Compliance with Deadlines: It is important to timely file tax returns and pay taxes to avoid fines and penalties.

It should be noted that tax legislation may change, so it is recommended to obtain current information directly from official sources, such as the Ministry of Finance of Croatia or the tax administration.

In Croatia, the tax declaration process for foreign citizens depends on their residency status and sources of income.

A resident is taxed on worldwide income.

A non-resident is taxed only on income earned from sources in Croatia.

Tax Declaration Process

Obtaining a Personal Identification Number: Foreign citizens, regardless of residency status, must obtain an OIB to fulfill tax obligations.

Gathering Required Information:

For residents: They need to collect data on all income earned both in Croatia and abroad.

For non-residents: Information is required only on income earned from Croatian sources.

Filling Out the Tax Return:

Form: Residents and non-residents fill out the appropriate tax return forms available on the Croatian Tax Administration website.

Submission Deadlines: The annual tax return must be submitted by the end of February of the year following the reporting year.

Filing the Return

In Person: The return can be submitted at the regional office of the Tax Administration at one's place of residence or stay.

Online: Through the e-Građani system, which provides electronic services to citizens.

 

Features for Non-residents

Obligations: Non-residents are required to declare income earned in Croatia, such as rental income, work, or other sources.

Double Taxation Avoidance Agreements: Croatia has concluded agreements with several countries to prevent double taxation. Non-residents can take advantage of the provisions of these agreements to reduce their tax burden.

Recommendations

Consultation with a tax advisor: Foreign citizens are advised to consult a professional tax advisor to ensure correct compliance with all tax obligations according to Croatian law.

Registration as a self-employed individual: suitable for those who independently provide services or produce goods.

Taxation

Lump-sum tax: With annual income up to a certain limit (set annually), one can opt for a simplified taxation system with a fixed tax depending on the income level.

Standard taxation: If the established income limit is exceeded, the standard taxation system applies, taking into account actual income and expenses.

Social contributions: Self-employed individuals are required to pay contributions for pension and health insurance.

 

Registration as a freelancer: suitable for professionals such as lawyers, doctors, artists, and others whose activities are regulated by specific laws.

Taxation: Income is subject to personal income tax, calculated as the difference between income and expenses.

Social contributions: Mandatory payments, similar to other forms of self-employment.

 

Company registration: Creating a limited liability company is suitable for larger-scale activities or if personal liability needs to be limited.

Taxation: The company pays profit tax, and owners pay dividend tax upon profit distribution.

Social contributions: If the owner is also an employee of the company, corresponding contributions must be paid.

Benefits and features

Lump-sum taxation: Provides a simplified accounting system and fixed tax payments for small businesses with low income levels.

Non-taxable income: Certain types of income, such as specific scholarships or grants, may not be taxed under specified conditions.

Electronic reporting: The ePorezna system allows self-employed individuals and freelancers to file tax reports and manage their obligations online, simplifying interaction with tax authorities.

Recommendations

Before choosing a registration form and taxation system, it is recommended to consult a specialist to assess the optimal option considering the specifics of your activity.