Croatia
Retail_Trading_Status
- Analysis ID
- #637
- Version
- Latest
- Created
- 2025-12-12 04:05
- Run
- 1b10f20a...
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- Workflow Stage
- Step 1
Executive Summary
Retail cryptocurrency trading is legal and regulated in Croatia, overseen by the Croatian Financial Services Supervisory Agency (HANFA). A mandatory registration regime for Virtual Asset Service Providers (VASPs) has been in place since 2020 under the Anti-Money Laundering Law, and the country has fully adopted the EU's Markets in Crypto-Assets (MiCA) Regulation as of December 2024. Retail investors are subject to a 12% capital gains tax on profits from crypto assets held for less than two years, while long-term holdings are tax-exempt.
Key Pillars
HANFA (Croatian Financial Services Supervisory Agency) acts as the primary regulator and licensing authority.
Mandatory VASP registration for all exchanges and custodian wallet providers operating in Croatia.
Full implementation of EU MiCA Regulation (Regulation (EU) 2023/1114) with a transition period for existing entities until July 2026.
Strict AML/KYC compliance required under the Anti-Money Laundering and Terrorist Financing Act.
Capital gains tax regime for individuals with specific exemptions for long-term holding (>2 years).
Landmark Laws
Act on the Implementation of Regulation (EU) 2023/1114 on Markets in Crypto-Assets (Zakon o provedbi Uredbe (EU) 2023/1114 o tržištima kriptoimovine) - Enacted: 2024-07-27
- Designates HANFA and the Croatian National Bank as competent authorities for MiCA; establishes supervisory powers, penalties, and the transition framework for existing VASPs.
- Source
Anti-Money Laundering and Terrorist Financing Act (Zakon o sprječavanju pranja novca i financiranja terorizma (ZSPNFT)) - Enacted: 2017-11-01
- Defined 'virtual currencies' and 'custodian wallet providers'; mandated registration with HANFA for all crypto service providers (amended in 2019 and 2022 to align with FATF/AMLD5).
- Source
Personal Income Tax Act (Zakon o porezu na dohodak) - Enacted: 2024-01-01
- Regulates the taxation of capital gains, including those from cryptocurrency trading, setting the rate at 12% for short-term holdings.
- Source
Considerations
Capital gains tax is 12% for crypto held less than 2 years; holdings over 2 years are tax-exempt.
Crypto-to-crypto trades are generally not taxable events; tax is triggered upon conversion to fiat.
Existing VASPs registered before Dec 30, 2024, benefit from a 'grandfathering' clause allowing operation until July 2026 while applying for a MiCA license.
Cryptocurrency is not legal tender; the Croatian National Bank (HNB) has issued warnings regarding volatility.
Surtax (prirez) was abolished in 2024, simplifying the tax calculation to a flat 12% for most municipalities.
Notes
Croatia is considered one of the more crypto-friendly nations in the EU due to its 0% tax on long-term holdings (>2 years). The 'grandfathering' period for VASPs means that until mid-2026, the market will contain a mix of entities operating under the old AML registration and those with new MiCA licenses.
Remaining Uncertainties
- While the 12% tax rate is standard, some municipalities may still have specific local tax variations following the 2024 tax reform, though capital gains are typically uniform.
- The exact timeline for the first batch of full MiCA licenses to be issued by HANFA during the transition period remains to be seen.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading is legal and regulated in Croatia. The regulatory framework is anchored by the Croatian Financial Services Supervisory Agency (HANFA) as the primary licensing and supervisory authority. The foundational legislation is the Anti-Money Laundering and Terrorist Financing Act (Zakon o sprječavanju pranja novca i financiranja terorizma), enacted on 2017-11-01, which first defined virtual currencies and mandated registration for Virtual Asset Service Providers (VASPs) with HANFA. This established a mandatory registration regime for exchanges and custodian wallet providers, requiring strict adherence to Anti-Money Laundering and Know Your Customer (AML/KYC) protocols. Croatia has fully adopted the European Union's Markets in Crypto-Assets (MiCA) Regulation as of December 2024, implemented nationally via the Act on the Implementation of Regulation (EU) 2023/1114 on Markets in Crypto-Assets, enacted on 2024-07-27. This act designates HANFA and the Croatian National Bank (HNB) as the competent authorities for MiCA, establishes their supervisory powers and penalties, and creates a transition framework for existing service providers. Under this framework, VASPs registered before December 30, 2024, benefit from a 'grandfathering' clause, allowing them to continue operating while applying for a MiCA license until the transition period ends in July 2026. From a tax perspective, the Personal Income Tax Act, effective 2024-01-01, governs capital gains from cryptocurrency. It imposes a 12% tax on profits from crypto assets held for less than two years, while holdings over two years are exempt from this tax. Furthermore, crypto-to-crypto trades are generally not considered taxable events; taxation is typically triggered upon conversion to fiat currency. The surtax (prirez) was abolished in 2024, simplifying the tax calculation to a flat 12% rate for most municipalities. It is important to note that cryptocurrency is not recognized as legal tender in Croatia, and the Croatian National Bank has issued warnings to the public regarding the inherent volatility of these assets.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is Allowed-Regulated in Croatia.
* The market operates under a comprehensive regulatory framework combining national AML laws and the fully adopted EU MiCA Regulation.
II. Key Regulatory Bodies
* Croatian Financial Services Supervisory Agency (HANFA):
* Primary regulator, licensing authority, and supervisor for VASPs.
* Competent authority for MiCA alongside the Croatian National Bank.
* Croatian National Bank (HNB):
* Co-competent authority for MiCA.
* Has issued public warnings on cryptocurrency volatility.
III. Important Legislation
* Act on the Implementation of Regulation (EU) 2023/1114 on Markets in Crypto-Assets (2024-07-27):
* National law implementing the EU MiCA framework.
* Designates HANFA and HNB as competent authorities and establishes the transition regime for existing VASPs.
* Anti-Money Laundering and Terrorist Financing Act (ZSPNFT) (2017-11-01):
* The foundational law that first defined virtual currencies and mandated VASP registration with HANFA.
* Amended in 2019 and 2022 to align with FATF and EU directives.
* Personal Income Tax Act (2024-01-01):
* Governs the taxation of capital gains from cryptocurrency, setting the rate and exemption criteria.
IV. Compliance Requirements
* For VASPs (Exchanges & Custodians):
* Mandatory registration with HANFA under the AML law.
* Must comply with strict AML/KYC obligations.
* Existing entities registered before Dec 30, 2024, must apply for a MiCA license by the end of the transition period in July 2026.
* For Retail Investors:
* Must declare and pay a 12% capital gains tax on profits from crypto assets held for less than two years.
* Must maintain records for tax purposes, with taxation typically triggered upon conversion to fiat.
V. Notable Restrictions or Limitations
* Cryptocurrency is not legal tender in Croatia.
* The Croatian National Bank warns the public about the high volatility and risks associated with crypto assets.
VI. Recent Developments or Notes
* Croatia is considered crypto-friendly due to its 0% tax on long-term holdings (>2 years).
* The surtax (prirez) was abolished in 2024, simplifying the tax calculation to a flat 12% rate.
* A key 'grandfathering' clause allows VASPs registered before December 30, 2024, to operate until July 2026 while applying for a MiCA license, leading to a dual regulatory environment during the transition.
* Crypto-to-crypto trades are generally not taxable events; tax applies upon conversion to fiat currency.
Full Analysis Report
Full Analysis Report
Croatia has established a robust and clear regulatory framework for cryptocurrency, positioning itself as a 'Allowed-Regulated' jurisdiction within the European Union. The primary regulatory body, the Croatian Financial Services Supervisory Agency (HANFA), actively maintains a public register of Virtual Asset Service Providers (VASPs). This registry was established under the Anti-Money Laundering and Terrorist Financing Act, which transposed EU AML directives into local law. Entities providing exchange services or custodian wallets must register with HANFA, demonstrate the 'good repute' of their management, and implement comprehensive AML/CFT measures.
As of late 2024 and throughout 2025, Croatia is in the active implementation phase of the EU Markets in Crypto-Assets (MiCA) Regulation. The 'Act on the Implementation of Regulation (EU) 2023/1114', enacted in July 2024, formally designated HANFA as the competent authority for crypto-asset service providers (CASPs) and the Croatian National Bank (HNB) for asset-referenced tokens (stablecoins). A transition period is currently in effect: entities that were already registered with HANFA by December 30, 2024, are permitted to continue operations under the old regime until July 1, 2026, or until they are granted or refused a MiCA license.
For retail investors, the environment is open and clearly defined. There are no restrictions on buying, selling, or holding cryptocurrencies. The tax treatment is favorable compared to many other EU jurisdictions. Profits from the sale of cryptocurrency are classified as capital gains and taxed at a flat rate of 12% (following the 2024 tax reform that abolished city surtaxes). Crucially, if an investor holds the asset for more than two years, the capital gain is entirely tax-exempt. Reporting is done annually via the JOPPD form.
Enforcement is active, with HANFA regularly publishing updates to its VASP register and issuing warnings about unregistered entities. The banking sector, while cautious, generally processes transfers to and from regulated exchanges, particularly those listed in the HANFA registry. The regulatory clarity provided by the combination of the local AML law and the overarching MiCA framework provides a high degree of legal certainty for both businesses and retail users.
Croatia has established a robust and clear regulatory framework for cryptocurrency, positioning itself as a 'Allowed-Regulated' jurisdiction within the European Union. The primary regulatory body, the Croatian Financial Services Supervisory Agency (HANFA), actively maintains a public register of Virtual Asset Service Providers (VASPs). This registry was established under the Anti-Money Laundering and Terrorist Financing Act, which transposed EU AML directives into local law. Entities providing exchange services or custodian wallets must register with HANFA, demonstrate the 'good repute' of their management, and implement comprehensive AML/CFT measures. As of late 2024 and throughout 2025, Croatia is in the active implementation phase of the EU Markets in Crypto-Assets (MiCA) Regulation. The 'Act on the Implementation of Regulation (EU) 2023/1114', enacted in July 2024, formally designated HANFA as the competent authority for crypto-asset service providers (CASPs) and the Croatian National Bank (HNB) for asset-referenced tokens (stablecoins). A transition period is currently in effect: entities that were already registered with HANFA by December 30, 2024, are permitted to continue operations under the old regime until July 1, 2026, or until they are granted or refused a MiCA license. For retail investors, the environment is open and clearly defined. There are no restrictions on buying, selling, or holding cryptocurrencies. The tax treatment is favorable compared to many other EU jurisdictions. Profits from the sale of cryptocurrency are classified as capital gains and taxed at a flat rate of 12% (following the 2024 tax reform that abolished city surtaxes). Crucially, if an investor holds the asset for more than two years, the capital gain is entirely tax-exempt. Reporting is done annually via the JOPPD form. Enforcement is active, with HANFA regularly publishing updates to its VASP register and issuing warnings about unregistered entities. The banking sector, while cautious, generally processes transfers to and from regulated exchanges, particularly those listed in the HANFA registry. The regulatory clarity provided by the combination of the local AML law and the overarching MiCA framework provides a high degree of legal certainty for both businesses and retail users.
Source Evidence
Primary and secondary sources cited in this analysis
"Legal entities providing virtual asset services... List of notified virtual asset service providers."
"On 30 December 2024, Regulation (EU) 2023/1114... became applicable in the Republic of Croatia."
"Capital gains are taxed at a rate of 12%."
"A 12% capital gains tax is applied when converting crypto to regular money... All crypto exchanges must be registered with HANFA."
"Ako kriptovalutu držite dulje od dvije godine prije prodaje... dobit nije podložna oporezivanju."
Web Sources (10)
Sources discovered via web search grounding
Search queries used (7)
- Croatia crypto tax capital gains 2025
- legal status of bitcoin in Croatia 2025
- Croatia cryptocurrency regulation HANFA 2024 2025
- HANFA register of virtual asset service providers Croatia
- Croatia Law on Implementation of MiCA Regulation
- Zakon o porezu na dohodak kriptovalute 2025
- Croatia capital gains tax rate 2025 crypto surtax abolition
https://coinfomania.com/crypto-regulations-in-croatia/
https://manimama.eu/cryptocurrency-regulation-in-croatia/
https://www.croatiaweek.com/how-crypto-taxes-work-in-croatia-what-investors-need-to-know/
https://manimama.eu/mica/casp-license-in-croatia/
https://www.hanfa.hr/news/ordinance-on-keeping-the-register-of-virtual-asset-service-providers/
https://manimama.eu/mica-implementation-in-croatia/
https://manimama.eu/cryptocurrency-regulation-in-croatia/
https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/croatia
https://multilaw.com/Multilaw/ZENTSO/BusinessGuides/Presentation/Section_Home.aspx?GuideId=2&GuideCountry=Croatia&GuideSection=296
https://rue.ee/blog/croatia-crypto-tax/