The treaty applies to Croatian profit tax, income tax, local income tax, and any related surcharges, as well as to Saudi income tax and Zakat.
The Income and Capital Tax Treaty between Croatia and Saudi Arabia, signed on 4 December 2024, entered into force on 24 June 2025.
This marks the first tax agreement between the two nations, aimed at eliminating double taxation and promoting cross-border trade and investment.
The treaty applies to Croatian profit tax, income tax, local income tax, and any related surcharges, as well as to Saudi income tax and Zakat.
It establishes withholding tax rates of 5% on dividends, 5% on interest, and 10% on royalties.
Both countries will apply the credit method to avoid double taxation.
The treaty will take effect from 1 January 2026.
Earlier, Croatia published the law ratifying the income and capital tax treaty with Saudi Arabia in the Official Gazette on 16 June 2025.
