Were you wondering what are the costs of labour and living in Croatia? A decision about moving to a new country is not an easy one. It takes a lot of time and effort to gather all necessary information about the costs of labour and living in a certain city.
To make it easier for you, Aestus accounting team made a minimum salary cost breakdown for a company manager working and living in the city of Rijeka. Also, we created a simple comparison table of monthly living costs in Rijeka and Zagreb.
Minimum salary cost for a company manager in Rijeka (in kunas)
|I. pillar of pension insurance|
|II. pillar of pension insurance|
|Total gross contributions|
|Total tax relief|
|Total income tax|
|Total tax and surtax|
|Health insurance contribution|
|Total gross contributions|
If you plan on hiring additional employees, it is important to notice that the Minimum Wage Act defines the lowest gross monthly salary a worker is entitled to for a full-time work. In the year 2020. it amounts to 4.062, 51 kunas.
In addition, there are other expenses that occur in almost every business:
- daily allowance for domestic business travel/field work – up to 200,00 kunas per diem,
- compensation for the use of a private vehicle for business purposes, including local transportation – 2,00 kunas per kilometre,
- meal expenses – max 5.000,00 kunas per employee per year,
- employee reward – max 5.000,00 kunas per employee per year,
- holiday reward – 3.000,00 kunas per employee per year,
- other compensations for similar material costs.
Keep in mind that these compensations are not mandatory and depend solely on the decision of the company’s director.
Also, most of the mentioned costs are tax-free. However, entrepreneurs should be familiar with the tax regulation conditions when conducting these payments. That is why we recommend hiring a professional accountant team to help you optimize your costs while keeping your business in line with the tax laws.
Equally important, in the Republic of Croatia, profit tax rate amounts to 12% for companies with a turnover up to 7.500.000,00 HRK (approximately 1.000.000,00 EUR) per year and 18% for companies with a turnover exceeding that amount.
With high quality of life and EU membership, Croatia is becoming an increasingly popular destination for expats and remote workers. A group of foreign entrepreneurs is working with the Croatian government on introducing digital nomad visa. To help you with making a decision, we summed up average costs of living in Zagreb, the capital, and Rijeka, blooming business destination.
Monthly living costs in Zagreb and Rijeka (in kunas)
|Apartment (1 bedroom) in the City Centre||3.580,00||2.525,00|
|Basic costs (Electricity, Heating, Water, Garbage) for an 85m² Apartment||1.240,00||1.125,00|
|Internet (200 Mbit/s, Unlimited Data, Cable/ADSL)||180,00||180,00|
|Food Expenses (Bread, Milk, Meat, Fruit, Drink etc.)||1.000,00||1.000,00|
|Food and drinks in Restaurants||800,00||720,00|
|Monthly Transport Pass (Regular Price)||400,00||276,00|
Finally, we hope we provided you with useful information. Should you need any additional information or advice on starting a business, feel free to reach out to our accounting team via our email address firstname.lastname@example.org or simply by filling out our contact form.
Still not sure about wether to start a business in Croatia? Check out our latest post How to start a business in Croatia in 5 steps.
ISO 9001 certificate awarded to Aestus Accounting
Aestus Financial Advisory Ltd. was awarded the ISO 9001: 2015 certificate, which proves the successful implementation of the organization’s quality system. In this way, our customers and other market participants can have confidence in the introduced quality management system.
ISO 27001 certificate awarded to Aestus Accounting
Aestus Financial Advisory Ltd. was awarded the ISO 27001: 2013 certificate, making us one of the first accounting services in Croatia with a security management certificate.
How to start a business in Croatia in 5 steps
Let’s face it, Croatia is one of the most beautiful places to live and work in. Whether you are an entrepreneur thinking about how to start an up-scale business, or a digital nomad trying to find a safe haven to set-up your residence, Croatia is the perfect choice. A country with low costs of living, […]