New Law Tightens Tax Transparency on Crypto and Offshore Income in Croatia

A new tax transparency law has come into force in Croatia, significantly strengthening the authorities’ ability to track undeclared income, offshore assets and crypto-related transactions.

The amended Law on Administrative Cooperation in the Field of Taxation, which took effect on December 11, expands the automatic exchange of financial information between Croatia and other EU member states. The legislation aligns Croatia with two EU directives covering crypto-asset reporting and tax cooperation involving digital platforms.

For the first time, crypto transactions, account ownership, investment holdings and income generated through digital platforms will be included in mandatory reporting. Banks, financial institutions and crypto service providers will be required to collect and submit detailed data to the Croatian Tax Administration, which will then share the information with other EU countries when relevant.

Tax authorities will also be able to request additional information and impose penalties for non-compliance. While full implementation is expected to take up to a year due to technical challenges, analysts say the first tangible results will likely emerge after the 2027 reporting cycle.