Croatia’s government has approved the draft law for the ratification of a pending income and capital tax treaty with Liechtenstein on 2 May 2025.

Signed on 22 January 2025, it is the first income tax treaty between the two countries. The agreement aims to eliminate double taxation between Croatia and Liechtenstein. It follows OECD standards and incorporates OECD/G20 BEPS principles to address tax evasion and avoidance.

The agreement will take effect 15 days after the exchange of ratification instruments and applies from 1 January of the following year.

Earlier, the Liechtenstein government approved the ratification of the income and capital tax treaty with Croatia on 15 April 2025.