Croatia has ratified a new income tax treaty with New Zealand establishing rules to eliminate double taxation and prevent tax evasion.
Croatia’s parliament has passed the law for the ratification of the income tax treaty with New Zealand on 30 April 2026.
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 applies to Croatia’s profit tax, income tax, and related surcharges, and to income tax in New Zealand.
It provides for a 5% withholding tax on dividends where the beneficial owner holds at least 10% of the company’s capital or voting rights for a continuous 365-day period, including the payment date; otherwise, a 15% rate applies.
Interest and royalties are each subject to a 10% withholding tax.
The treaty will enter into force upon the exchange of ratification instruments. It will apply to withholding taxes from the first day of the second month following its entry into force. For other taxes, it will take effect in Croatia from 1 January of the year after entry into force, and in New Zealand from 1 April of the following year.
Earlier, the Croatian government approved a draft bill on 16 April 2026 to ratify its first income tax treaty with New Zealand.
