Croatia follows EU MiCA regulations with clear tax treatment for cryptocurrency activities. The country offers a stable regulatory environment for crypto businesses operating within the European framework.

Crypto service providers must comply with EU MiCA and register with CNB.

Prior to the full application of MiCA, the primary requirement for crypto businesses in Croatia is registration as a Virtual Asset Service Provider (VASP) under the Act on the Prevention of Money Laundering and Financing of Terrorism (AML Act) (Official Gazette No. 108/2017, 39/2019, 151/2022). This registration is overseen by the Croatian Financial Services Supervisory Agency (HANFA). The AML Act mandates registration for entities providing services such as exchange between virtual and fiat currencies, custodian wallet services, and transfer of virtual assets. Following the full application of the EU's Markets in Crypto-Assets Regulation (MiCA) on December 30, 2024, the VASP registration will be replaced by the more stringent Crypto-Asset Service Provider (CASP) license. HANFA has been designated as the competent authority for MiCA (Titles II, V, and VI). The application process for the CASP license will require a comprehensive application detailing governance, internal controls, and operational procedures, with HANFA having a 25-working-day window to assess the application after submission. Entities not registered as VASPs must establish a Croatian company and obtain the MiCAR license to operate legally.

Cryptocurrency is treated as a financial asset in Croatia, and its tax treatment depends on the nature of the activity. For individuals, gains from the sale of cryptocurrencies are generally subject to a flat Capital Gains Tax (CGT) rate of 12%, plus a local surtax which varies by municipality. However, a significant exemption applies: capital gains are tax-exempt if the cryptocurrency is held for a period exceeding two years from the date of acquisition. The taxpayer is still required to report the disposal, even if the gain is non-taxable. Income derived from professional activities, such as crypto mining, staking, or high-frequency trading, is typically classified as "other income" and is subject to progressive income tax rates of 20% or 30%, plus local surtax, depending on the total annual income threshold. For Value Added Tax (VAT), the exchange of traditional currency for virtual currency and vice versa is generally exempt from VAT, following the European Court of Justice's Skatteverket ruling, as crypto is treated as a means of payment. Reporting obligations require taxpayers to file an annual tax return (JOPPD form) to declare capital gains and other crypto-related income.

Banking access for crypto businesses in Croatia has historically been challenging, with traditional domestic banks exhibiting caution due to the unregulated nature of the sector. However, the situation is improving, particularly with the full implementation of MiCA, which is expected to increase the comfort level of local financial institutions. Currently, many crypto businesses rely on international, crypto-friendly banks and specialized fintech providers. Some international banks, such as SEBA Bank and Banque Delubac & Cie, are known to offer services to crypto firms. Furthermore, specialized services like Nordark provide dedicated IBAN accounts for crypto businesses operating in Croatia, offering a viable alternative to traditional banking. While specific major Croatian banks like Zagrebačka banka (ZABA) and Privredna banka Zagreb (PBZ) have been mentioned in the context of becoming more accommodating post-MiCA, they are not yet widely recognized as fully crypto-friendly. The regulatory clarity provided by MiCA is the key driver for improved banking access.

https://www.hnb.hr/c/document_library/get_file?uuid=db434ae7-a815-85f8-29cf-132b2ff42fb0&groupId=20182&p_auth=XbARbxME https://www.hanfa.hr/consumers/consumer-news/notification-for-persons-intending-to-trade-crypto-assets/ https://www.hnb.hr/en/-/uredba-o-trzistima-kriptoimovine-mica https://www.hanfa.hr/registers/virtual-currencies/legal-entities-providing-virtual-asset-services/ https://cms.law/en/int/expert-guides/cms-expert-guide-on-taxation-of-crypto-assets/croatia