Croatia has become one of Europe's most popular places for remote workers and lifestyle movers. It has more than a thousand islands, a safe and relaxed culture, and since January 2023 it has used the euro and been part of the Schengen area. Its digital nomad permit is one of the most generous in Europe.

Residence options

EU and EEA citizens can live and work in Croatia freely and register their address with the police.

Non-EU citizens have several options, described by the Ministry of the Interior:

  • Digital nomad temporary stay: for people who work remotely for foreign employers or their own foreign-registered company. Since 2025 it can last up to 18 months. Applicants must show income above a threshold linked to the average Croatian salary, health insurance and a clean criminal record. Income earned under this status is exempt from Croatian income tax. After it ends, you must usually wait six months before applying again.
  • Work and stay permit: for people hired by a Croatian employer, typically after a labour market test.
  • Family reunification: for spouses and family of Croatian citizens and residents.
  • Property owners: owning property in Croatia does not by itself grant residence, though it can support a temporary stay application on other grounds.

How much does it cost to live in Croatia?

Croatia is cheaper than Western Europe but no longer a bargain, especially on the coast. Our Croatia data puts an average one-bedroom at about $650 a month and a three-bedroom at about $1,100. Zagreb, Split and Dubrovnik cost more, and summer rental prices on the coast can double as owners switch to tourist lets. Many long-term renters sign leases from October to May.

Groceries cost about $250 a month for one person, and eating out is around $100 a month on a modest budget. Local salaries are low, averaging about $23,000 a year, which is why Croatia works best for people earning from abroad.

How Croatian taxes work

Since 2024, Croatian cities set their own income tax rates within national limits. The lower rate applies up to €50,400 a year and the higher rate above it. In Zagreb, these are 23% and 33%, according to the Croatian Tax Administration. Employees also contribute 20% of gross pay to pension funds.

VAT is 25%, one of the highest in the EU, though lower rates apply to some food and accommodation. Capital gains and dividends are generally taxed at 12%. Use our tax calculator for estimates.

Healthcare

Residents who pay contributions are covered by the national health insurance fund, HZZO. Most also pay for supplementary insurance (dopunsko) to cover co-payments. Digital nomads are outside the public system and must hold private health insurance.

Daily life

Croatian life revolves around coffee, family and the outdoors. A coffee on a café terrace can last an hour, and "pomalo", roughly "take it easy", sums up the coastal attitude. The Dalmatian coast is busy and expensive in July and August and very quiet in winter, when many restaurants close. Zagreb, inland, has a year-round café culture, Christmas markets and a more Central European feel.

English is widely spoken by younger Croatians and in tourist areas, but paperwork is in Croatian. Bureaucracy can be slow and inconsistent between offices, so keep copies of everything.

Is Croatia a good place to move?

Croatia is ideal for remote workers, EU citizens and people seeking Mediterranean life at moderate cost. It suits those comfortable with a seasonal rhythm on the coast. If you are choosing between Mediterranean countries, see our Croatia vs Greece comparison.