Croatia Inheritance & Gift Tax Guide 2026

Inheritance Tax Rates 2026

Inheritance tax is payable on the value of assets inherited from a deceased person's estate. The rates depend on the relationship between the heir and the deceased:

• Spouses and children (First inheritance tax group): 5% on the portion exceeding EUR 50,000 (the first EUR 50,000 is exempt). The primary residence inherited by a spouse or child is fully exempt regardless of value.
• Parents, grandparents, grandchildren, siblings (Second group): 5% on the entire value (no EUR 50,000 exemption)
• Other relatives and non-relatives (Third group): 10% on the entire value

The tax is calculated on the fair market value of the inherited assets at the date of death. Real estate is valued by the Tax Administration based on comparable market values. Movable assets (cash, vehicles, household goods) are valued at their market value. The estate executor or the heir is responsible for filing the inheritance tax return and paying the tax within the statutory deadline (typically 4 months from the date of death).

Gift Tax — 5%

Gifts made during the donor's lifetime are subject to gift tax at the following rates:

• Spouses and children: Fully exempt from gift tax — no tax payable regardless of the gift value
• Parents, grandparents, grandchildren, siblings: 5% tax on the portion exceeding EUR 50,000 (first EUR 50,000 exempt)
• Other relatives and non-relatives: 5% tax on the entire value (no exemption)

Gift tax is payable by the recipient (donee). The donor is jointly liable if the recipient does not pay. Gifts of real estate must be reported to the Tax Administration within 30 days of the gift agreement (ugovor o darovanju). The notary handling the gift transaction is responsible for notifying the Tax Administration.

Exemptions

Key exemptions from inheritance and gift tax include:

• Primary residence: Inherited by spouse or child — fully exempt regardless of value
• Spousal gifts: Any gift between spouses — fully exempt
• Parent-to-child gifts: Fully exempt
• Inheritance below EUR 50,000: Exempt for first-group heirs (spouse, children)
• Household goods: Movable household items up to a reasonable value — exempt
• Life insurance proceeds: Paid to named beneficiaries — not subject to inheritance tax
• Charitable donations: Gifts to registered charities and religious organisations — exempt

Filing and Payment

Inheritance tax is declared through the estate administration process (ostavinska rasprava) before a notary public or municipal court. The court or notary determines the estate value and the tax due, and notifies the Tax Administration. The heir must pay the tax within 15 days of receiving the tax assessment. Gift tax must be declared within 30 days of the gift by filing a gift tax return (obrazac za porez na darove) with the local Tax Administration office. Late filing penalties range from EUR 200 to EUR 2,000.

International Considerations

Croatia's inheritance and gift tax applies to assets located in Croatia, regardless of the residence of the heir or donor. Non-residents inheriting Croatian real estate are subject to the same rates. Croatia has limited double tax treaties covering inheritance tax — estate planning for cross-border situations requires careful consideration. EU succession regulations (Brussels IV) apply to succession matters of EU residents, but tax treatment follows national law.

FAQs

What is the inheritance tax rate in Croatia?

5% for spouses and children (on value exceeding EUR 50,000). 5% for parents/siblings, 10% for others. Primary residence is exempt for spouse/children.

Is there gift tax in Croatia?

Yes, at 5%. Spouses and children are fully exempt. Others get EUR 50,000 exemption before tax applies.

What is the exemption threshold for inheritance tax?

Spouses and children: first EUR 50,000 is exempt. Primary residence is fully exempt for spouse/children regardless of value.

How do I report a gift or inheritance?

Gifts must be reported within 30 days. Inheritance is handled through the court/notary estate administration process.