Based on the new General Tax Act effective as of 1st January 2019, Article 43 related to the rules for determination of the place of residence for individuals having a residential address in Croatia and abroad is extended.
Namely, according to the regulations of the former Act, if the taxpayer was holding permanent residence both in the country and abroad, it was considered that they were holding permanent residence in the country.
However, for tax purposes according to the new General Tax Act, the place of residence is considered to be the place in the country where the family of the individual is located or, for unmarried individuals, according to the place in which they spend most of their time or according to the place from which they most commonly leave for work or conducting business.
Therefore, if the other country where the individual has a residential address does not consider such an individual to be its tax resident, then it is considered that such an individual is resident in Croatia for tax purposes.
