Digital Nomads and Their Tax Obligations in Croatia: A Comprehensive Look
Croatia has opened its doors to digital nomads with an official 12-month digital nomad visa. Here's what you need to know to apply.
Firstly, applicants must hold a passport from a non-EU/EEA country valid for at least three months after the visa term. They must also have health insurance coverage for the duration of their stay in Croatia.
Applicants are required to provide an address of where they will stay in Croatia. If they plan to bring a spouse or children dependents under 18 years old, the minimum income requirement increases by 10%.
The minimum income requirement is set at 3,295€ per month, or applicants can show proof of savings in a bank account equivalent to 59,310€.
Working remotely in Croatia with the digital nomad visa is legal, but it's important to note that digital nomads will generally be taxed based on their tax residency status. If they stay more than 183 days in Croatia, they may become tax residents and must pay income tax there. However, if they stay for less than 183 days, their tax liability could remain in their home country, but specific rules and double taxation agreements must be considered.
Croatia requires proof of remote income and compliance with local tax regulations for nomads under this visa. Business owners with companies established outside of Croatia must pay corporate tax to their respective countries. Citizens of the United States, for example, have citizenship-based taxes that they will owe each year, even if they do not live in the country.
Nomads Embassy encourages digital nomads to speak with a specialized tax advisor or accountant to fully comprehend where they will owe taxes based on their personal situations.
The application process for the Croatia digital nomad visa can be completed online, in person while in Croatia, or at a Croatian embassy or consulate. It's important to note that the digital nomad visa is non-renewable, but can be reapplied for after leaving the country for at least six months.
Applicants must present a clean criminal background check from their country of residence. Remote workers who relocate to Croatia on a visa other than the digital nomad visa may be subject to local taxes.
Finally, it's crucial to remember that the complexity of paying taxes as a digital nomad requires careful consideration and consultation with a tax advisor or accountant. The tax benefits of the Croatia digital nomad visa only apply to those with the digital nomad visa, making it an attractive option for remote workers looking to experience Croatia's stunning landscapes and vibrant culture.
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