Croatia tax reform: lower brackets spared, top brackets face 12.5-25% hikes

Croatia's government has announced a tax reform that leaves taxpayers earning up to €40,000 unaffected while raising taxes and contributions for the two highest income brackets by 12.5% and 25% respectively. The change signals a fiscal policy shift toward progressive taxation, likely aimed at deficit reduction or social spending. Uncertainty remains over the exact thresholds and effective dates, and the reform's impact on investment and high-income earners is not yet clear.