Croatia and New Zealand have finalised their first-ever income tax treaty, setting withholding tax rates and implementation timelines after the Croatian government approved the ratification bill in mid-April 2026.
The Croatian government approved a draft bill on 16 April 2026 to ratify its first income tax treaty with New Zealand.
The agreement, which was signed on 20 November 2025, establishes comprehensive tax rules between the two nations. The agreement aims to eliminate double taxation and prevent tax evasion between the two countries.
The treaty covers Croatia’s profit tax, income tax, and related surcharges, while applying to income tax in New Zealand.
The treaty sets dividend withholding tax at 5% when the beneficial owner holds at least 10% of the company’s capital or voting power for 365 days, including the payment date. Otherwise, the rate is 15%. Both interest and royalties face a 10% withholding tax.
The treaty takes effect after ratification instruments are exchanged. Withholding taxes will apply from the first day of the second month following entry into force. Other taxes apply from 1 January of the following year in Croatia and 1 April of the following year in New Zealand.
