BIG NEWS – IMMINENT SGNING OF DOUBLE TAXATION AVOIDANCE TREATY BETWEEN CROATIA AND AUSTRALIA
Photo credit: hundsonfinancialplanning Australia

According to sources first reported a few hours ago by SBS media sources, a historic double taxation avoidance agreement-treaty is set to be signed between Australia and Croatia, with a Croatian delegation headed by Croatian Finance Minister Marko Primorac. The agreement is said to eliminate double taxation and encourage new investment, trade and economic cooperation between the two countries. While the content of this Agreement is not known to the public because it has not yet been signed, we know from the Proposal for this Agreement published by the Ministry of Finance of the Republic of Croatia in February 2025 that it will increase the level of mutual economic cooperation between the Republic of Croatia and Australia, will provide numerous reliefs in the taxation of income and profits of residents of the contracting states, will encourage foreign investments in the Republic of Croatia, will open up opportunities for increasing the mutual exchange of goods and services, i.e. increasing the level of mutual economic cooperation between the Republic of Croatia and Australia, and will encourage the fight against tax avoidance through the exchange of information.

It was said on February 25 that this agreement will also regulate the issue of taxation of real estate, profits from the alienation of property, income from employment, remuneration of board members, income of athletes and artists, pensions, income earned from work in the civil service and other income not explicitly defined by the previous provisions of the Draft Agreement…

This is a major event for the Croatian community in Australia. This was discussed and proposals were submitted to the Croatian authorities as early as 1992/1993, especially regarding the avoidance of double taxation of pensions earned in Australia upon return to Croatia. Namely, Croatia taxed income from an Australian pension even though it was subject to the Australian tax system!

SBS reports that the agreement will be signed in Canberra on November 24, 2025.

Many pensioners are interested in finding out after this whether Croatia will tax their Australian pension if they return to live in Croatia or not. Will their place of residence for tax purposes be changed to Croatia or will it remain in Australia where they earned their pension through their work and tax payments. The question is how the agreement regulates the issue of foreign pensions in Croatia, namely. I hope for great joy within the Croatian community after November 24, or when we find out what the agreement says. Ina Vukic

NEWS IN CROATIAN LANGUAGE:

Prema izvorima uprvo izdatih prije par sati od SBS medije planira se potpisivanja povijesnog sporazuma o izbjegavanju dvostrukog oporezivanja između Australije i Hrvatske za što dolazi delegacija iz Hrvatske u Australiju na čijem će čelu biti ministar financija RH Marko Primorac. Navodno, sporazum će ukloniti dvostruko oporezivanje i potaknuti nova ulaganja, trgovinu i gospodarsku suradnju između dviju zemalja. Dok sadržaj tog Sporazuma nije poznat javnosti jer još nije potpisan znamo iz Prijedloga za taj Sporazum kojeg je ministarstvo financija RH objavilo u veljači 2025. da će on povećati stupanj uzajamne gospodarske suradnje između Republike Hrvatske i Australije, omogućit će se brojne olakšice pri oporezivanju dohotka i dobiti rezidenata država ugovornica, potaknut će se strana ulaganja u Republiku Hrvatsku, otvorit će se mogućnosti za povećanje međusobne razmjene dobara i usluga, odnosno povećanja stupnja uzajamne gospodarske suradnje između Republike Hrvatske i Australije te će se potaknuti borba protiv izbjegavanja plaćanja poreza putem razmjene obavijesti.

Rečeno je u veljači 25. da će u tom sporazumu biti uređeno i pitanje oporezivanja nekretnina, dobiti od otuđenja imovine, dohotka od nesamostalnog rada, naknada članova uprave, dohotka sportaša i umjetnika, mirovina, dohotka ostvarenog temeljem rada u državnoj službi te ostalog dohotka koji nije izričito definiran prethodnim odredbama Nacrta ugovora…

Ovo je veliki događaj za hrvatsku zajednicu u Australiji. Počelo se o tome govoriti i prilagati prijedloge hrvatskim vlastima još 1992/1993 osobito vezano uz izbjegavanje dvostrukog oporezivanja mirovina stečenih u Australiji pri povratku u Hrvatsku. Naime, Hrvatska je oporezivala dohodak od australske mirovine iako je ista bila pod poreznim sustavom Australije!

SBS javlja da će se sporazum potpisti u Canberri 24. studenog 2025.

Zanima mnoge umirovljenike nakon toga saznati hoće li im Hrvatska oporezivati australski mirovinu ako se vrate živjeti u Hrvatsku ili ne. Hoće li njihovo mjesto rezidencije vezano za porez biti promijenjeno u Hrvatsku ili ostati u Australiji gdje su svojim radom i plaćanjem poreza i zaslužili mirovinu. Pitanje je kako se u tom sporazumu uredilo pitanje stranih mirovina u Hrvatskoj, naime. Nadam se velikom veselju unutar hrvatske zajednice nakon 24. studenog odnosno kada saznamo što stoji u tom sporazumu. Ina Vukić

7 responses to “BIG NEWS – IMMINENT SGNING OF DOUBLE TAXATION AVOIDANCE TREATY BETWEEN CROATIA AND AUSTRALIA”

  1. Looking for the Light Avatar

    Great news!!!!! It will open many doors and dollars.

    Liked by 1 person

  2. AmericaOnCoffee Avatar

    Really awesome. People worldwide are overtaxed to benefit politicians and elites. 😡

    Liked by 1 person

  3. preacher01704 Avatar

    This is good news. This has become normal and usually encourages investors.

    Liked by 1 person

    1. inavukic Avatar

      Yes it is good news. Just waiting to see if pensions brought to Croatia will be exempt from taxation in Croatia because they fall under the taxation system of the country the pension was earned etc. If not then much more work needs to be done given that such a positive result has been achieved with a handful of countries already.

      Liked by 1 person

      1. 7luigiitau Avatar

        I receive Italiand and AU pension will most probably treat in the same way with tax paid only in one place where the recipeient live. Good to had such bilateral accord. Centrelink will be linked with Croatia pension system. Shalom

        Liked by 1 person

      2. inavukic Avatar

        But currently things are different between countries, pensions from some countries are not taxed in Croatia if pensioner returns to live there while pensions from other countries are. Hence, it seems it all depends on negotiation skills between two countires, which is a shame

        Like

      3. preacher01704 Avatar

        That would be an important exemption to obtain. Pensions should be exempt as people paid taxes when the money was earned. I pray that is agreed soon.

        Liked by 1 person

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I’m Ina

I was born in Croatia and live Australia. I have been described as a prominent figure known for my contribution to the Croatian and wider societies, particularly in the context of Croatia’s transition from communism to democracy, as well as for my many years of work as a clinical psychologist and Chief Executive Officer of government-funded services for people with disabilities, including mental health services, in Australia. In 1995, the President of the Republic of Croatia awarded me two Medals of Honor, the Homeland War Memorial Medal and the Order of the Croatian Trefoil for her special merits and her contribution to the founding of the Republic of Croatia.  I have been a successful blogger since 2011 and write extensively in the English-language on issues related to Croatian current affairs and democracy, as well as the challenges Croatia faced and still faces in its transition from communism. My goal is to raise awareness of these connections and issues worldwide.