Moving to Croatia in 2026: the euro, the digital nomad visa and the Adriatic coast

The Croatian Income Tax Act treats a taxpayer as resident when they have a domicile or habitual residence in the territory, with presence of more than 183 days³ being one of the criteria.

The Croatian particularity lies in the decentralisation of the tax scale. The State sets ranges, and it is the local authorities that determine, within those limits, the lower and higher rates applicable in their territory. A municipality may thus choose 20%⁴ as its low rate and 30%⁵ as its high rate.

The practical consequence is direct: the municipality of residence changes the tax burden at identical income, and a move of a few kilometres can have a measurable effect. This is a parameter to factor into the choice of where to settle, just like the price of housing.

Capital income

Dividends and profit shares fall under capital income tax at a rate of 10%⁶. Capital gains on financial assets have been taxed, since 1 January 2024, at a rate of 12%⁷, under the conditions set out in Article 70.

Inheritances and gifts are subject to a single rate of 4%⁸, with exemptions covering close relatives in particular. This is a markedly lighter regime than the French scale for indirect-line transfers.

Companies

Profit tax has two rates depending on revenue: 10%⁹ below a revenue threshold, and 18%¹⁰ above it. The threshold clearly favours small structures, which is of interest to a self-employed person who would operate through a company.

For a self-employed person, Croatia also offers a flat-rate regime reserved for very small activities, based on taxation of turnover rather than actual profit. It is capped and subject to eligibility conditions that exclude several professions.

We publish neither the ceiling of this flat-rate regime nor the list of excluded activities: they do not appear in the excerpts of legislation available to us and must be verified before building a project on them.

As Croatia is a member of the European Union and the Schengen area, a French national needs no residence permit. Registration is required beyond a certain length of stay, and it has effects on tax residence.

The digital nomad stay

Croatia was one of the first European countries to create a temporary stay dedicated to remote workers who are third-country nationals. It is granted for a maximum period of up to 18 months¹¹, and may be shorter.

The applicant must show proof of means of subsistence, the reference amount of which has been €3,622.5¹² since 1 January 2026, according to the applicable text.

Two features distinguish this stay from more recent nomad visas. It is not renewable on the same terms as an ordinary permit — a waiting period applies before a new application. And work for a Croatian employer is excluded: the scheme is indeed aimed at income of foreign origin.

This is also where its tax appeal lies. Since 1 January 2021, the Income Tax Act, in its Article 9 (a point added by the act published in Narodne novine No. 138/2020), excludes from taxable income the sums that a person holding digital nomad status receives for employment or an activity carried out for an employer not registered in Croatia. Work for a Croatian employer remains subject to the general rules. We have not rechecked the wording of this article currently in force: the exemption should be confirmed with the Croatian tax administration before moving.

The exact length of the waiting period before a new stay, as well as the terms of extension to family members, do not appear in our excerpts: they must be verified with the Croatian Ministry of the Interior.

Acquisition by a citizen of the European Union is free and treated as equivalent to that of a national. For third-country nationals, it remains subject to reciprocity and authorisation, which significantly lengthens timelines.

The market is dominated by the Adriatic coast and the islands, where foreign demand and seasonal rentals have pushed prices well beyond local income levels. The interior of the country, with the exception of Zagreb, follows a very different trajectory.

Two checks are essential before any coastal purchase. The Croatian land registry has historically been slow to update, and the chain of title of an older property deserves careful examination. In addition, short-term rental is subject to authorisations and its own taxation, which determine the expected yield.

We publish neither the Croatian transfer duties nor the flat-rate regime applicable to tourist rentals: they do not appear in the excerpts of legislation available to us.

A point about timing is worth knowing: on the coast, the season also shapes transactions. Viewings, valuations and works are concentrated outside the summer period, and a transaction started in July often takes several months longer to complete than one started in October.

Joining the eurozone has made comparisons clearer and removed exchange rate risk for a French resident. The cost of living remains below the eurozone average, with a marked gap between the coast in season and the rest of the year.

We do not publish a typical monthly budget: we have not found an official Croatian series measuring a basket of expenses comparable to that of an expatriate.

Seasonality is the dominant feature of a coastal budget. Year-round rentals are hard to find in tourist areas, where owners favour summer lets, and the prices of services vary sharply depending on the period.

On top of this comes the municipal variable of the tax scale: at equal income, two residences a short distance apart can lead to different tax burdens. This is something to ask about before signing a lease or a preliminary sale agreement.

Finally, Croatian public healthcare is accessible to registered residents and of a decent standard, which eases an expense that is often heavy outside the European Union. For a French retiree, the coordination of European schemes considerably simplifies coverage, an advantage that few low-cost destinations can offer.

1. Obtain the Croatian personal identification number, the OIB, which is required before any banking, rental or property transaction;
2. find out about municipal rates before choosing a municipality of residence;
3. register with the local authorities within the prescribed deadlines, as registration has tax consequences;
4. for a third-country national, submit the residence application that corresponds to their situation, bearing in mind that the digital nomad stay cannot be immediately renewed;
5. deal with the departure from France according to your own circumstances and the applicable tax treaty.

We do not publish processing times: we have no official, dated figures for Croatian residence permits.

• The tax scale depends on the municipality: comparing Croatia with another country without specifying the place of residence is meaningless.
• The stay of digital nomads is capped at up to 18 months¹¹ and a waiting period is required before a new application can be filed: it is not a route to long-term settlement.
• Short-term letting is regulated and taxed: a yield calculated without these constraints is overstated.
• The land register deserves careful checking for older properties on the coast.
• Membership of the Union, the eurozone and Schengen places the Croatian passport on a par with other European passports: naturalisation would bring no mobility gain to a French citizen.

Finally, Croatia occupies a particular position: as a member of the Union, the eurozone and Schengen, it offers a French citizen a familiar legal framework with a lower cost of living. The trade-off is therefore less a tax one than a geographical and practical one — which is why the choice of municipality matters more there than the choice of country.