- by croatiaweek
- April 28, 2026
-
in
News
ZAGREB, 28 April (Hina) – All parliamentary groups have supported bills ratifying agreements between Croatia and Australia, and Croatia and New Zealand on eliminating double taxation on income and preventing tax evasion and avoidance, with lawmakers highlighting the agreements as a significant opportunity for the Croatian diaspora.
State Secretary at the Ministry of Finance Matej Bule said the treaties will create better conditions for trade in goods and services and strengthen cooperation between Croatian businesses and their Australian and New Zealand counterparts.
He added that the agreements establish a clear and transparent framework for business activity, giving entrepreneurs legal certainty over which country has the right to tax income and reducing the risk of double taxation.
The treaties also introduce various tax reliefs across different types of income and are expected to increase overall economic activity with both countries. A key element is the regulation of tax residency, including for pension and investment funds.
Business profits will generally be taxed in the country of residence of the company, while international shipping and airline companies will pay tax only in Croatia.
Bule noted that direct communication with foreign tax authorities will now replace the need to go through diplomatic and consular channels.
SDP MP Boris Lalovac asked about a similar agreement with the United States. Bule responded that although the treaty was signed four years ago, additional adjustments were needed, and a supplementary protocol is expected to be signed in Dubrovnik next week, paving the way for ratification and entry into force.
IDS MP Dalibor Paus inquired about expectations for increased trade, to which Bule replied that strengthening cooperation is precisely the goal, especially given the large Croatian community in both countries.
SDP MP Boris Piližota asked what the agreements mean for small entrepreneurs and craftspeople.
Bule emphasised that around 170,000 people of Croatian descent live in Australia, including very successful businesspeople, who could use the new legal certainty to enhance cooperation with Croatian businesspeople.
He also added that he expects the agreements to begin applying from 1 January next year.
MPs from both the HDZ and SDP stressed that the agreements remove obstacles caused by double taxation and send an important political message to Croatian emigrants, including those considering returning to Croatia.
MP Lalovac highlighted the importance of resolving the issue of residency, saying that for both entrepreneurs and especially citizens it is “the most important anchor determining where tax is paid.” He also stressed the important political message of the agreements for around 350,000 Croatian emigrants and their descendants in both countries.
“These agreements do not apply only to companies, but are also very important in the possible return of part of the Croatian community to Croatia. It is crucial that people living in Australia, if they want to come to Croatia in retirement, are clearly informed about which taxes they would pay on their pension,” Lalovac said.
Independent MP Josip Jurčević criticised the late timing of the agreements, arguing that Croatia has long failed to fully utilise the development potential of its diaspora.
