Croatia will eliminate its pension tax next year after the Croatian Pensioners' Party reached an agreement with government leaders. The decision affects more than 474,000 pensioners who paid the tax in September, representing over 40 percent of all pension recipients in the country. The average monthly tax payment stood at 31.12 euros, but local governments collected 14.7 million euros from the levy in September alone.
The new Act on Special Tax on Salaries, Pensions, and Other Income will exempt all pensions from taxation after passing through two readings in parliament. Finance Minister Marko Primorac previously questioned the logic of taxing pensions, while opposition parties submitted legislative amendments to remove the tax entirely. The current system taxes pension amounts exceeding the 600-euro personal allowance, but the average pension has already surpassed that threshold and is expected to reach 800 euros by the end of the government's term.
The new Act on Special Tax on Salaries, Pensions, and Other Income will exempt all pensions from taxation after passing through two readings in parliament. Finance Minister Marko Primorac previously questioned the logic of taxing pensions, while opposition parties submitted legislative amendments to remove the tax entirely. The current system taxes pension amounts exceeding the 600-euro personal allowance, but the average pension has already surpassed that threshold and is expected to reach 800 euros by the end of the government's term.
