Croatia and the United States signed their first-ever income tax treaty on December 7, 2022 - Croatia had no US tax treaty at all before that. An amending Protocol followed on April 28, 2026, and the Croatian government approved a bill to ratify both the treaty and the Protocol on July 30, 2026 - days before this update was written. But approval by Croatia’s government is not the same as the treaty being in force: it still needs the US Senate’s advice and consent and formal ratification in the Croatian Parliament before its withholding-rate provisions actually apply to anyone.
As of this update, the treaty is not yet in force. For a Croatian investor in US stocks today, that means the standard 30% non-treaty default still applies to US dividends - the same position as any other no-treaty country in this series, for now. This guide covers where things currently stand, what changes once the treaty takes effect, and broker access for Croatian residents.
Where Things Stand Right Now
Current reality (2026): with the treaty not yet in force, US dividends paid to a Croatian resident are withheld at the full 30% default rate - Form W-8BEN still matters for certifying non-US person status and avoiding backup withholding, but there’s no treaty rate to claim yet.
On the Croatian side: dividends received from abroad are currently taxed at a flat 12% under Croatian domestic law for Croatian resident individuals - the rate applying to capital income including dividends, interest and capital gains. The 10% figure that circulates is Croatia’s withholding rate on dividends paid out to non-resident entities, which is a different rule and not the one a Croatian investor holding US stock is subject to - a separate calculation from the US withholding, with the two combining to the total tax burden on a US dividend right now (30% to the US, plus Croatia’s own domestic treatment, without the credit mechanisms a treaty would formalize).
What’s still needed for the treaty to take effect: US Senate advice and consent (a step that has, for other countries’ treaties and protocols in recent years, taken anywhere from months to several years after signing), and ratification in the Croatian Parliament. Croatia’s July 2026 government approval is a genuine, concrete step forward - but it is the Croatian side of a two-country process, not the finish line.
What Changes Once the Treaty Is in Force: Dividends at 15%
When the treaty and its Protocol do take effect, the terms already agreed provide for standard, modern treaty relief:
| Income Type | Current (Treaty Not in Force) | Once in Force (Portfolio) | Once in Force (Direct Corporate, 10%+) |
|---|---|---|---|
| Dividends | 30% (US default) | 15% | 5% |
| Capital gains (securities) | Generally not US-taxable for non-residents | Residence country only | Residence country only |
Sources: Treaty signed December 7, 2022; amending Protocol signed April 28, 2026; Croatian government ratification approval July 30, 2026; IRS and RSM/PwC/KPMG coverage of the treaty’s terms.
This would bring Croatia in line with the standard 15%/5% dividend structure used across most modernized US treaties in this series - a meaningful improvement from the current 30% default, once both countries complete ratification.
What to do in the meantime: keep watching for news of US Senate action, since that’s now the more significant remaining step given Croatia’s own approval is in motion. There’s no way to claim the future treaty rate before it formally enters into force, regardless of how advanced the ratification process looks.
Account Access Comes First in Croatia
Interactive Brokers and eToro both serve Croatian clients. Neither broker can apply a treaty rate that isn’t yet in force - the 30% default (or the future 15%, once ratification completes) is determined by the treaty’s legal status, not by broker policy.
Turning This Into Actions from Croatia
Before you place the first trade from Croatia:
- File W-8BEN with your broker now - it certifies non-US person status and prevents backup withholding, even though it doesn’t reduce the rate below 30% until the treaty is in force
- Expect 30% US dividend withholding for now; don’t assume the treaty’s future 15% rate applies before formal ratification completes
- Track US Senate action on the treaty and Protocol, since Croatia’s own approval (July 30, 2026) is already in motion
- Report worldwide investment income, including US dividends and capital gains, on your Croatian tax return under current domestic rules
- Revisit this guide once the treaty formally enters into force to confirm the new 15%/5% rates apply to your account
- Ask the broker directly what it currently requires from a Croatian applicant - published country lists lag internal policy
What Croatia Investors Are Actually Left With
This is one of the more actively moving situations covered in this series: a genuinely new, first-ever US-Croatia tax treaty that would deliver standard modern relief (15% on dividends, down from 30%) is closer to reality than it has ever been, with Croatia’s government approving ratification just days before this update. But it is not yet in force, and a Croatian investor today should plan around the 30% default rather than the treaty’s future terms until US Senate action and Croatian parliamentary ratification are both actually complete.
Use this as a reference on investing from Croatia; get advice for your own case. The US-Croatia Income Tax Treaty was signed December 7, 2022, with an amending Protocol signed April 28, 2026; the Croatian government approved a ratification bill July 30, 2026, but the treaty is not yet in force as of this update, pending US Senate advice and consent and Croatian Parliament ratification. Always verify current treaty status and consult a qualified Croatian or cross-border tax advisor before relying on future rates.
Sources: RSM - United States and Croatia Sign First Ever Income Tax Treaty; regfollower - Croatia: Government Approves Tax Treaty, Amending Protocol; PwC - Signing of Protocol to US-Croatia Treaty; Croatia Week - US-Croatia Double Taxation Agreement Still Awaits Ratification; KPMG - TNF Croatia Tax Treaty with Australia Signed, Protocol to Treaty with Switzerland Ratified (2026); LegalClarity - US Croatia Tax Treaty: Key Provisions and Rules; PwC Croatia Tax Summaries - Corporate Withholding Taxes (2026).
