How to file a mileage allowance claim in Croatia?

In Croatia, like most European countries (Sweden, Austria, Netherlands, Switzerland, Italy, Slovenia and Poland), mileage allowance claims are usually handled by the employer. This means your company might have a specific mileage claim form that you should submit.

How does Croatia's mileage reimbursement compare to other European countries?

Croatia’s mileage reimbursement is 2.96 HRK (0.39 EUR), lower than other European countries, like:Czech Republic (€0.19/km) Austria (0.42 EUR/km)Belgium (0.3707 EUR/km)Finland (0.46 EUR/km)It is also lower than the IRS mileage rate in the USA, which is $0.67 (around €0.62) per mile for 2024.

Are there any conditions or limits to mileage reimbursement in Croatia?

Yes, there are. In Croatia, companies can reimburse employees for work trips, but there's a tax benefit attached. The government has set a specific rate (currently 2.96 HRK per kilometre) that's considered tax-free for employee mileage reimbursement.

How often is the mileage reimbursement rate in Croatia updated?

The mileage reimbursement rate in Croatia for government employees is updated very frequently—mostly every last Tuesday of the month. The rate 2.96 HRK (0.39 EUR) per kilometre has been effective since February 1, 2024 with no changes up-to-date.

What is the VAT treatment for mileage allowance reimbursements to employees in Croatia?

In Croatia, mileage allowance reimbursements to employees are generally considered outside the scope of VAT. This means that VAT is not charged on these reimbursements.

Does mileage allowance for using my personal car for work purposes affect my social security contributions in Croatia?

No, mileage allowance reimbursements in Croatia do not directly affect your social security contributions. Social security contributions are calculated based on your salary or other forms of income tax, not on reimbursements for work-related expenses like mileage.

Does my mileage allowance affect my visa status?

In most cases, the mileage allowance you receive from your employer should not directly affect your visa status. Your visa is tied to your employment contract and approved by the Croatian authorities.

Driving for business purposes in Croatia? Know mileage allowance

Croatia, the land of stunning beaches, ancient walled cities and… confusing mileage allowance rates for business travel? Sure, losing yourself in the beauty of Dubrovnik is one thing, but losing yourself in expense reports is probably not what you had in mind for this beautiful country.

Juggling multiple rates—official Croatian allowances, converting them to your local currency and trying to reconcile them with your company's policy—can feel like a complex maths equation, to say the least.

In this guide, we break down the travel allowance rates, how they apply and tips to maximise reimbursements—while you sip espresso in a charming harborside cafe!

How does mileage allowance work in Croatia?

Mileage allowance in Croatia is a reimbursement rate set by the Croatian Ministry of Labour and Social Welfare. This rate is for employees who use their personal car for business purposes. It covers costs associated with vehicle operation, including fuel, maintenance and wear and tear.

As of February 1, 2024, the rate is set at 2.96 HRK (0.39 EUR) per kilometre. This rate has been reduced by 10.77% from the previous rate 3.32 HRK (0.44 EUR) per kilometre, effective until January 30, 2024.

This mileage allowance specifically applies to personal cars used for business purposes and does not vary based on the type of personal vehicle used, whether electric, diesel, or petrol. It does not extend to company cars, car rentals or motorcycles.

Note: The mileage allowance rates for Croatia are updated frequently—usually every last Tuesday of the month. The rate 2.96 HRK (0.39 EUR) per kilometre has been effective since February 1, 2024 with no changes up to the date of writing this article.

Want to get your corporate travel policy on paper? Start by learning how to write a stellar car allowance policy today.

What are the mileage allowance rates in Croatia for 2024?

Personal cars

As of February 1, 2024, the mileage allowance rate in Croatia for the use of a private car for business-related travel is set at 2.96 HRK (0.39 EUR) per kilometre. This rate applies uniformly, regardless of the type of private vehicle used.

Here’s a quick calculation based on the distance travelled:

Distance travelled (km)

Total mileage allowance (2.96 HRK per kilometre)

Total mileage allowance (EUR)

HRK 148.00

€20

150

HRK 444.00

€59

300

HRK 888.00

€118

Source

This reimbursement is tax-free up to the specified rate of 2.96 HRK per kilometre. Any amount reimbursed above this rate is considered taxable income.

So, if an employee travels 100 km and is reimbursed at a rate of 3.50 HRK (€0.46) per kilometre, the total reimbursement would be 350 HRK (€46).

The tax-free portion would be 100 km x 2.96 HRK = 296 HRK (€39).

The taxable portion would, therefore, be 350 HRK - 296 HRK = 54 HRK (€7).

Tired of employee questions and delays around mileage reimbursement? Read our guide for a step-by-step approach to writing a clear mileage reimbursement policy.

Public transport for business trips

Travel expenses incurred during business trips in Croatia (e.g. trains, buses and trams) can be reimbursed as non-taxable expenses. Here are a few transport cost ranges to help you calculate employee travelling allowances.

Domestic train fares in Croatia

Route

Approx ticket range (EUR)

Zagreb to Rijeka

€14 - €22

Zagreb to Zadar (via Knin)

From €12.5

Zagreb to Osijek

€15.50 - €18

Zagreb to Vukovar

€17 - €20

Osijek to Rijeka

€26 - €29

International public transport connections from Croatia

Destination

Cities connected

Approx ticket range (EUR)

Finland

Helsinki

€90 - €110

France

Paris

€60 - €80

Germany

Munich

€29 - €59

Hungary

Budapest

€29 - €49

Norway

Oslo

€95 - €115

Portugal

Lisbon

€100 - €120

Spain

Barcelona

€75 - €95

Note: These routes are generally connected with other European rail networks and prices vary based on factors like the type of train, time of booking and seasonal demand.

What is not included in the mileage allowance in Croatia?

The mileage allowance does not include other expenses that may arise during business travel, like daily allowances (per diems), travel insurance and accommodation expenses.

According to the European Commission and Croatian tax laws, the daily travel allowances are as follows:

Duration of Trip

Coverage

Amount (HRK)

Amount (EUR)

Details

Full Day

Accommodation, meals, local travel and minor expenses

1350 HRK

€180

Comprehensive daily coverage for international staff on assignment

Over 12 hours

Meals and minor expenses

200 HRK

€27

Non-taxable per diem for domestic business trips

8-12 hours

Meals and minor expenses

100 HRK

€13

Non-taxable per diem for shorter domestic business trips

Source (1), source (2), source (3)

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Frequently asked questions about mileage allowance in Croatia

How to file a mileage allowance claim in Croatia?
How does Croatia's mileage reimbursement compare to other European countries?
Are there any conditions or limits to mileage reimbursement in Croatia?
How often is the mileage reimbursement rate in Croatia updated?
What is the VAT treatment for mileage allowance reimbursements to employees in Croatia?
Does mileage allowance for using my personal car for work purposes affect my social security contributions in Croatia?
Does my mileage allowance affect my visa status?

Mileage allowance in Croatia: everything you wanted to know (2024)