The Liechtenstein government has announced the signing of an income tax treaty with Croatia on 22 January 2025.
The agreement aims to eliminate double taxation between the two countries. The treaty adheres to standards set by the OECD and incorporates the principles of the OECD/G20 BEPS project (Base Erosion and Profit Shifting) to combat tax evasion and avoidance. The agreement also regulates avoiding double taxation in income and wealth taxes.
Group dividends are entirely exempt from withholding taxes, while withholding taxes on other dividends, interest, and royalties are reduced to 5%.
