Croatian Investment Account from 2027: No Capital Gains Tax

Croatia introduces the Croatian Investment Account (HIR) from January 1, 2027, a new state instrument that for the first time allows citizens tax-incentivized investment in the capital market without paying capital gains tax. The instrument was presented at a press conference at the Ministry of Finance by State Secretary Matej Bule and members of the Management Board of the Croatian Financial Services Supervisory Agency (Hanfa), Anamarija Staničić and Martina Verić.

What is HIR and who can open it?

HIR is a special individual account intended for natural persons to invest in certain financial instruments with a more favorable tax treatment and reduced administrative burden. The account is opened with an investment company, bank, or management company that meets the conditions and is listed on the Register of Authorized Intermediaries kept by Hanfa. It can be opened by any Croatian citizen or resident, including minors through their guardians, and each person can have only one HIR, linked to their personal identification number (OIB).

Investment limits and tax benefits

The lifetime deposit limit on HIR is €200,000, with this amount covering only citizens' investments, while realized returns do not count toward this threshold. If a citizen continuously deposits funds into the account for five consecutive years without withdrawals, the limit increases by €50,000, to a total of €250,000. The key tax advantage is the exemption from capital gains tax, which is otherwise paid on income from investments in the Croatian capital market. State Secretary Bule emphasized:

"We know that it is common for the capital market to be reserved for those who know the financial market a bit better, but with this instrument it will truly be available to anyone who has the opportunity to save and invest."

Obligation to invest in domestic companies

One of the key conditions of HIR is that at least 20 percent of all investments must be directed to companies whose shares are listed on the Zagreb Stock Exchange. Bule described this as a step toward broader citizen participation in domestic economic growth:

"This is also a step further, so that citizens also benefit from the growth of the Croatian economy by investing in shares of domestic companies through this account."

Citizens decide whether to manage their portfolio themselves or entrust it to the institution where they opened the account, and it is also possible to transfer existing shares or other financial instruments into HIR.

Legislative framework and next steps

The draft proposal of the HIR law is currently in public consultation until August 23, 2026. Croatia has not previously had a legal framework for introducing such an instrument. According to data presented by Bule, of the 27 European Union member states, 12 have already introduced a similar model or are in the process of introducing one. The Swedish model was cited as a positive example, where citizens have opened hundreds of such accounts.

Revenue estimates and comparison with government bonds

According to Ministry of Finance estimates, in the first two years of HIR usage in Croatia, deposits are expected in the range of €200 to €600 million. Bule emphasized that HIR goes hand in hand with government bonds for citizens, which have shown great public interest in previous issues. Unlike bonds, which offer a fixed return with minimal risk exposure, HIR offers a wider range of instruments with potentially higher but also riskier returns, all with the same tax incentive in the form of capital gains tax exemption.