What are the conditions for obtaining a Digital Nomad Residence Permit in Croatia?
- remote work for a foreign employer or for one's own company that is not registered in the Republic of Croatia and does not perform tasks or provide services to employers in the territory of the Republic of Croatia
- financial means
- health insurance
- must not have been convicted of a criminal offense in the home country or a country in which the person resided for more than one year immediately prior to arriving to the Republic of Croatia
- valid documents
Where can a digital nomad submit his application?
A digital nomad can work from Croatia by applying for temporary residence in one of the following manners:
- online,
- with the Ministry of Internal Affairs (in the competent police department/ police station), or
- with the embassy/consulate of the Republic of Croatia, in an event when third-country national needs a visa to enter the Republic of Croatia.
Can the digital nomad be joined by the family members?
Yes. A digital nomad who has been granted temporary residence in the Republic of Croatia can be joined by immediate family members in the Republic of Croatia.
How long can a digital nomad stay in Croatia with a Digital Nomad Residence Permit?
Up to 12 months (it is possible to apply for shorter stay) and it cannot be extended. A new application for approval of a residence permit for digital nomads can be submitted 6 months upon the expiry of the previously granted temporary residence permit for digital nomads.
Where does a digital nomad pay income tax?
Persons who have the status of digital nomad in the Republic of Croatia do not pay income tax in Croatia. In addition, there is no reporting obligation for the digital nomads.
Is there a risk of creating a permanent establishment and paying profit tax?
In the event that digital nomads, especially those in managerial positions, work in locations where their employer does not have a legal presence (e.g. in the Republic of Croatia), the activities of the digital nomad can lead to the creation of a permanent establishment, which could result with the taxation of the profit that can be attributed to a permanent establishment of a foreign entrepreneur in the Republic of Croatia.
Therefore, each arrangement should be separately examined and tested for the purposes of determining the risk of creating a permanent establishment in the Republic of Croatia.
What happens to pension and health insurance contributions?
A person who has the status of a digital nomad in the Republic of Croatia does not pay mandatory contributions for pension and health insurance.
Subject to special conditions, it is possible that the health insurance of digital nomad is recognized in Croatia, however if it is not recognized and/ or digital nomad did not regulate the health insurance in Croatia, the digital nomad will be obliged to bear the costs of using the health care in a health institution in Croatia.