Draft amendments to the law sent to e-Consultation bring good news for most lump-sum craftsmen, and the Croatian Chamber of Trades and Crafts proposes introducing vouchers for occasional work.
Craftsmen whose annual income does not exceed €40,000 will not feel an increase in tax burdens from January 1, 2027. This was confirmed by Đurđica Mostarčić, head of the Accounting and Bookkeeping Section of the Croatian Chamber of Trades and Crafts (HOK), after draft amendments to the Contributions Act and the Personal Income Tax Act were sent to e-Consultation on August 11, 2026.
The new proposal is significantly milder than the initial version from the Ministry of Finance, which had planned to abolish the first tax bracket and impose significantly higher levies in higher brackets. "As a rule, lump-sum crafts are still the main winner," Mostarčić said on HRT's Studio 4 show, emphasizing that HOK is now satisfied with the proposed solution.
The key change compared to the initial proposal is the reinstatement of the first tax bracket and the freezing of obligations for all craftsmen with incomes up to €40,000, which covers the first five brackets. This avoids the initially planned increase in taxes and contributions, which ranged from €2,000 to €3,000 annually in the fifth and sixth brackets.
To avoid sudden jumps in obligations when moving to a higher bracket, HOK proposed limiting the growth of taxation to a maximum of 33 percent, or about €300 per year. The Chamber has also prepared a calculator for craftsmen, allowing them to calculate expected obligations in advance and choose the most cost-effective taxation system.
In addition to tax changes, HOK is actively advocating for the introduction of a voucher system for occasional and temporary work. This measure is primarily intended for the hospitality and construction sectors, where the most pronounced labor shortages have been identified. The goal is to make it easier to engage people who want to work extra, and to simplify the payment of associated taxes and contributions for employers.
Mostarčić emphasized that predictability is crucial for craftsmen because sudden increases in obligations directly affect their business calculations and can lead to higher prices for their services and products. The Chamber also advocates for measures to protect domestic food production and reduce imports, but details of these proposals have not yet been published.
