Croatian Investment Account Arrives in 2027: Tax-Free Returns and a Limit of Up to €200,000
New law envisages simpler investing in the capital market, with authorized intermediaries taking over administrative duties.
New law envisages simpler investing in the capital market, with authorized intermediaries taking over administrative duties.
The Ministry of Finance has published a draft proposal for the Croatian Investment Account (HRI) Act, which would allow citizens to invest in securities without paying tax on returns and with far fewer bureaucratic obstacles from 1 January 2027.
According to information reported by Tportal, the new financial instrument is intended to encourage small investors to channel part of their savings into the domestic capital market, while simplifying the previously complex tax treatment of occasional investments in shares, bonds and other instruments.
Any adult citizen will be able to open a Croatian Investment Account, and parents will be able to open one for minor children. Accounts can be arranged at banks, investment firms and other authorized intermediaries. Each individual may hold only one such account, with a lifetime deposit limit of €200,000.
If an investor only deposits funds for five years without making withdrawals, the limit is increased by an additional €50,000, bringing the total to €250,000. Returns, dividends and interest earned are not counted toward the limit, it covers only the investor's own deposits.
The biggest benefit is full exemption from capital income tax. The purchase and sale of financial instruments, reinvestment of profits, and receipt of dividends and interest within the account will not create a tax liability. The same applies to withdrawals, funds can be taken out at any time without taxation, regardless of the amount.
The law also introduces a feature that sets it apart from similar models in the European Union: at least 20 percent of investments must be directed into securities issued by domestic issuers on the Zagreb Stock Exchange. The aim is to boost liquidity and develop Croatia's capital market.
The previous obligations of keeping detailed transaction records, collecting data and calculating gains and losses for each individual purchase and sale now shift to authorized intermediaries. Citizens will thus be relieved of most paperwork, which should remove one of the key barriers preventing small investors from entering the market.
A register of all deposits and withdrawals will be maintained by the Central Clearing Depository Company (SKDD), while implementation and supervision of the law will be carried out by the Croatian Financial Services Supervisory Agency (HANFA), which also took part in drafting the proposal.
The Ministry of Finance estimates that in the first two years of implementation, citizens could invest between €200 million and €600 million through the HRI. In addition to simplifying investment, the aim is to boost financial literacy, strengthen domestic investment and increase citizens' participation in the capital market.
Public consultation on the draft law is open until 23 August 2026, with the regulation planned to take effect on 1 January 2027. If the proposal is adopted in its current form, Croatia will gain one of the most generous tax models of its kind in the European Union.
