Capital
Zagreb
Currency
Euro
Languages
Croatian
Population size
4.1M
Average Monthly Salary
€1100
EU
Since 2013
Region
Central-Europe
Gift Giving Norms
Practical, local wine or sweets well-received
Major Corporate Gift Days
Christmas, Statehood Day
Customs Complexity
Medium
VAT - Standard Rate
25%
Duty Free Threshold
€150
Ave Duty Rate
2%
1. Employee Merch vs. Gifts
Under Croatian law, items given to employees can be non-taxable if purely work-related. Otherwise, they may be treated as taxable benefits (dio dohotka u naravi – part of an employee’s income in kind). The Croatian Tax Administration (Porezna uprava) outlines thresholds and criteria for determining which category an item falls into.
1.1 Merchandise for Employees
Work-Related (Generally Non-Taxable)
Uniforms & Essential Tools
Apparel or equipment needed for an employee’s duties, such as branded uniforms or safety gear, is not taxed as additional income.
Branded Office Supplies
T-shirts, notebooks, or similar items that clearly display the company logo and are positioned as standard workplace gear often remain tax-exempt.
Potentially Taxable Items
Personal-Use Goods
Electronics, clothing, or products with little relevance to daily work may be deemed benefits in kind, meaning the employer must account for income tax and social contributions on their value.
Repeated Gifts
Multiple small gifts provided throughout the year can be viewed as disguised salary. Seek professional advice if planning frequent merchandise distributions.
1.2 Gifts for Non-Employees (Clients, Partners, Event Attendees)
Tax & Deductibility
Gifts supporting legitimate promotional or relationship-building aims are typically deductible. Larger or more frequent gifts without a clear business basis may be questioned by tax authorities.
Compliance & Anti-Bribery
Croatian regulations concerning anti-corruption require transparency, particularly when gifting public officials or high-value items. Keep records of gift costs, recipients, and rationale.
1.3 Marketing Merch
Promotional Merchandise
Items distributed at trade fairs or conferences (e.g., T-shirts, pens) are generally treated as marketing expenses rather than personal gifts. Maintain invoices and details on where and how the items were given away.
2. Shipping, Customs & Duties
2.1 Shipping
2.2 Importing
Import Duties & VAT
Non-EU imports over €150 may face customs duties (commonly 2–12%), plus 25% Croatian VAT on the total of (value + shipping + duties).
Documentation
Providing a commercial invoice with detailed product descriptions and correct HS codes smooths customs clearance.
2.3 DDP vs. DAP
Delivered Duty Paid (DDP)
The sender pays all import taxes and duties, making it simpler for the recipient.
Delivered At Place (DAP)
The recipient is billed for duties and VAT upon delivery, which can cause delays if not anticipated.
2.4 With Monday Merch
Since our warehouse is in Rotterdam (the Netherlands), we can ship to Croatia duty-free within the EU. Our team also advises on any VAT requirements to ensure a seamless process.
3. Cultural & Local Etiquette
3.1 Gifting customs
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
6. Summary and Key Takeaways
6.1 Summary & Takeaways
7. Frequently Asked Questions
7.1 Questions & Answers
Are branded uniforms taxable in Croatia?
No, if mandatory for work; purely personal goods could be taxed as wages.
Do B2B gifts qualify for deductions?
Yes, promotional or relationship-building gifts are deductible within reason.
Cultural preference in gifts?
Practical, mid-priced items reflect Croatia’s balance of tradition and modernity.
