FOREIGN PENSIONERS BEWARE (February 21, 2013)
Here is a quick guide to the taxation of foreign pensions in Croatia at today’s exchange rates of about seven and a half kuna per euro. If you have a monthly pension of two-thousand euros per month, only about four-hundred and fifty euros will not be taxed. This is considered to be a nice pension by Croatian standards. Close to three-hundred euros will be taxed at twelve percent and a half, eight-hundred and eighty will be taxed at twenty-five percent, and three-hundred and seventy euros will be taxed at forty percent. After tax, you will end up some four-hundred euros the poorer every single month. All together, you will be taxed at about twenty percent. In other words, if your monthly pension is larger than one-thousand and six-hundred euros, which is far from an exorbitant amount by European or American standards, then every additional euro will be taxed at forty percent. Foreign pensioners beware. Croatia is not a good place where to retire.