The Double Tax Treaty (DTT) entered into between Croatia and Kosovo came into force on 4 December 2017 and will become effective as of 1 January 2018.
The applicable tax rates according to the DTT are as described in what follows.
- 5% if the beneficial owner holds at least 25% of the shares
- 10% in all other cases
- Interest: 5%
Impact on investors: Eligible tax residents of Croatia and Kosovo will be able to enjoy preferential DTT rates as of 1 January 2018.