What is the Expense reimbursement policy in Croatia?



Modified on: Fri, 30 Jan, 2026 at 6:22 PM

TABLE OF CONTENTS

Many employers in Croatia reimburse business use of a private vehicle through a kilometre allowance, rather than reimbursing exact vehicle costs. There is no single national or statutory per‑kilometre rate that applies uniformly to all employers. Business trips in Croatia can be taxable or non-taxable, depending on compliance with the Income Tax Ordinance. Allowances apply to both domestic and foreign business trips.
Please refer to the Business Trip Order and Travel expense report (attached below) as the template document to calculate and submit your expense reimbursement requests.


Key Principles

  • Mileage reimbursement is governed by company policy, not a universal state‑mandated rate.
  • Reimbursement applies only to business travel (not commuting between home and the regular workplace).
  • Employers may choose to reimburse:
    • A reasonable per‑kilometre allowance, or
    • Actual business expenses, based on supporting documentation.

Documentation Requirements

  • Employees must submit original receipts or invoices for any reimbursed expenses.
  • Supporting documentation may include:
    • Mileage logs (date, route, distance, business purpose)
    • Fuel, parking, or toll receipts (if reimbursed separately)

Tax Treatment

  • Reimbursements of actual business expenses, when supported by valid documentation and clearly linked to work activities, are generally not treated as personal income for the employee.
  • Poorly documented or non‑business reimbursements may be reclassified for tax purposes.


Domestic Business Trips

  • Trips over 12 hours per day:
    Employers can pay a tax-free daily allowance of EUR 30.00.

  • Trips between 8 and 12 hours:
    A half-day per diem of EUR 15.00 is tax-free.


Meal Adjustments

If meals are provided at the employer’s expense:

  • One meal (lunch or dinner): Reduce allowance by 30% (up to EUR 21.00).
  • Two meals (lunch and dinner): Reduce allowance by 60% (up to EUR 12.00).
  • Breakfast included in lodging: Does not count as a provided meal.


Foreign Business Trips

For trips abroad lasting more than 12 hours per day or field work abroad:

  • Tax-free allowances apply up to the amount specified in official travel expense regulations.
  • The destination country determines the daily allowance, even if passing through other countries.
  • If staying more than 12 hours in a transit country, apply that country’s allowance.


Example:
Daily allowance for Romania = EUR 70.00.


Time Calculation Rules

  • Land travel (car, bus, train): Record exact border crossing times (departure and return).
  • Air travel: Count from two hours before scheduled flight departure from the last Croatian airport until landing at the first Croatian airport on return.


Reference

For the full list of countries and corresponding per diems, see the official regulations:
Official Travel Expense Regulations – Republic of Croatia

Attachments (1)

xlsx

Business Trip Order and Travel expense report.xlsx
18.8 KB

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