Croatia has moved a step closer to bringing its income tax treaty with the United States into force, with the government approving draft ratification legislation covering both the 2022 treaty and its 2026 amending protocol for parliamentary consideration.
The Croatian government approved a draft bill on 30 July 2026 to ratify the Croatia–US income tax treaty, signed in 2022, and its amending Protocol, signed on 28 April 2026.
According to the explanatory memorandum, the treaty is intended to eliminate double taxation, prevent tax evasion, provide reduced withholding tax rates on dividends, interest and royalties, recognise pension funds for treaty benefits, establish mechanisms for resolving tax disputes and exchanging tax information, and strengthen economic cooperation between the two countries.
The Protocol updates the treaty’s provisions on relief from double taxation, limitation on benefits, and non-discrimination.
The draft legislation has now been submitted to the Croatian Parliament for approval.
