Croatia's Government Adjusts Tax Rules for High‑Earning Self‑Employed Contractors
Prime Minister Andrej Plenković and Finance Minister Tomislav Ćorić announced corrective changes to the tax contributions of Croatia’s "paušalni" (lump‑sum) entrepreneurs. The government will introduce two new tax brackets: those with annual revenues up to €40,000 will see no increase, while earnings between €40,000‑€50,000 will face roughly a 30% rise and €50,000‑€60,000 about a 60% rise. Around 77,000 of the roughly 100,000 paušalni workers – about 85% – will avoid the higher burden.
The reforms accompany a raise of the VAT registration threshold to €60,000 and are presented as minimal measures aimed at preserving the fairness of the tax system. Plenković also highlighted ongoing government intervention in oil‑derived fuel and bottled gas prices for the past five months, citing inflationary pressures from the war in the Middle East and rising energy costs. He noted that Croatia now has 1.8 million employed people and 60,000 unemployed, framing the tax adjustments as part of a broader effort to shield the economy after the pandemic, the energy crisis and recent earthquakes.
Entities: Andrej Plenković · Croatia · Croatian Chamber of Crafts (Hrvatska obrtnička komora) · Croatian Government · Dalibor Kratohvil · Glas poduzetnika (UGP) · Tomislav Ćorić · paušalni obrtnici
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 3 SOURCES] The government may require bookkeeping for the highest tax tiers of paušalni obrtnici. (Plenković indicated that the finance minister would direct high‑earning freelancers to keep proper books.)
- [● 4 SOURCES] The Croatian government plans to introduce tax corrections for the highest‑income paušalni obrtnici. (Plenković and Ćorić announced corrections to tax contributions for the highest‑earning brackets.)
- [● 3 SOURCES] Croatia has 1.8 million employed people, 60 000 unemployed, and over 100 000 paušalni obrtnici. (Plenković cited these labour‑market figures in his remarks.)
- [● 2 SOURCES] Freelancers earning €50,000‑60,000 will see a tax increase of around 60 %. (The €50‑60 k bracket will face roughly a 60 % rise.)
- [● 2 SOURCES] Freelancers earning €40,000‑50,000 will see a tax increase of around 30 %. (The government plans a roughly 30 % rise for the €40‑50 k income bracket.)
- [● 3 SOURCES] The business association Glas poduzetnika (UGP) protested against increased tax pressure on paušalni obrtnici. (UGP expressed dissatisfaction with the growing tax burden on freelancers.)
- [● 3 SOURCES] Around 77,000 paušalni obrtnici earning up to €40,000 will not face increased tax contributions. (The new rules exempt about 77,000 freelancers (≈85 % of the group) earning up to €40,000 from higher taxes.)
- [● 3 SOURCES] The government has been intervening in oil‑derivative and bottled‑gas prices for five months due to the Middle East war and rising energy costs. (Plenković said the cabinet has intervened in fuel and gas prices for five months because of the war in the Middle East.)
- [○ 1 SOURCE] Entrepreneurs earning €40,000‑€50,000 will see about a 30% tax increase; those earning €50,000‑€60,000 about a 60% increase. (Government proposal)
- [○ 1 SOURCE] Approximately 77,000 of the roughly 100,000 paušalni entrepreneurs (about 85%) will avoid the new tax burden. (Government statement)
- [● 2 SOURCES] The VAT registration threshold was raised to €60,000. (Government policy)
- [● 3 SOURCES] The government has intervened for five months in oil‑derived fuel and bottled gas prices due to inflationary pressures from the Middle East war and rising energy costs. (Prime Minister Plenković)