Features
TYPE
LENGTH
FEE
MIN ANNUAL INCOME
LOCAL TAX
INTERNET
COST OF LIVING
CROATIA
Temporary Stay of Digital Nomads
No income tax from the remote job for a year, and a way to avoid Shengen zone!
Croatia offers the Temporary Stay of Digital Nomads to anyone who is from outside of the EU and is working in ‘communication technology’ either as a remote employee or through their own company registered outside of Croatia. It’s worth mentioning that Croatia is now in Schengen so if you can not use this program anymore to stay out of the Schengen area for 180 days and come back.
PROS
- Lower entry requirements than other visas (min income level, visa fees).
- Zero Income Tax for up to a year in a spectacular European destination!
- Better defined info & law on tax implications than for other visas.
- On average, the cost of living is lower than in other countries around Europe.
- Easy to get by as most people speak English!
CONS
- Possible issues with WiFi, especially on islands.
- Plenty of delicious local food not that much choice in terms of other cuisine.
- Not enough co-living/working spaces and nomad communities.
Specification: CROATIA
Temporary Stay of Digital Nomads
Taxes
Local Taxes
Digital nomads with Temporary Stay are exempt from local income taxes on income for foreign companies nor there is any requirement for local tax filings for income derived from these remote jobs.
Receiving a tax number during the application process doesn’t imply Croatian tax residency. Digital nomads are generally considered non-tax residents and spending over 183 days in Croatia does not automatically confer tax residency, which depends on connections with the home country and other factors. If deemed a Croatian tax resident, nomads are exempt from income tax on remote work income but must pay tax on other worldwide incomes.
Home Country Taxes
Digital nomads should pay taxes in their home countries where they normally reside. The status of nomads without a technical tax residency is unclear however, most likely, if you spend over 183 days in Croatia, you will be considered a tax resident in Croatia.
Local Social Security: Not applicable for digital nomads but other Local Taxes: May apply depending on circumstances.
For more details please see: What Taxes Do Digital Nomads Really Need To Pay In Croatia?
Requirements
To apply remote workers must be from Non-EU, EEA, and Switzerland. Additionally, they can’t be from any currently sanctioned countries (see FAQs for list). They also need to fall under one of the 3 categories. They need to be either:
- remote employee – work for an employer registered in a foreign country and have a contract of work;
- self-employed – conduct business activities for a company registered in a foreign country and of which applicant is partner/shareholder; or
- offer freelance or consulting services, mostly to clients whose permanent establishments are in a foreign country, and with whom the applicant has contracts.
All applicants must have a gross annual income threshold of EUR 32,400 which is roughly US$ 36,000. This threshold will be higher for any additional family members. All supporting documentation must be submitted in English.
The required documents include:
- Filled Application Forms N1, N2, and N4;
- Letter of Intent stating motivations for moving to Malta & list of documents you are attaching;
- Passport Copy (all pages incl. blank ones);
- Proof of remote working by including either:
- An Employment Contract and any official tax documentation (where applicable) proving that you can perform your work duties location independently;
- Evidence of owning a company and being self-employed in it, official tax returns, financial statements, certificates of incorporation, etc.
- Evidence of freelance activities such as contracts with clients, rates, duties, but also one-year bank statements and corresponding invoices;
- Signed CV, listing education & experience;
- Bank Statements showing min income for the last 3 months;
- Comprehensive Local/International health insurance policy for all applicants for the whole length of stay in Malta; Plus a signed Health declaration stating that the applicant will cover all health costs that insurance won’t cover;
- Marriage certificate, birth certificate, Name Change proof, proof of relationship with dependents (if applicable);
- Proof of Accommodation – rental, lease, or purchase agreement. Initially, you can submit it for a temporary period, which will later need to be followed by proof of accommodation for the rest of the stay.
