The Albanese Government has signed a landmark tax treaty with Croatia - the first ever between our two nations - marking a major step forward in our growing bilateral relationship.
Once in force, the agreement will make it easier for Australian and Croatian businesses to trade, invest and innovate together. It creates a more predictable and transparent tax environment, paving the way for deeper economic cooperation.
The treaty lowers certain withholding tax rates, cutting costs for Australians investing in Croatia and opening up new avenues to access Croatian capital and technology. It will also simplify compliance and give businesses and investors greater certainty about their tax obligations.
Two‑way trade between Australia and Croatia reached around $328 million in 2024, with investment totalling about $67 million, particularly in retail and tourism. The new treaty is expected to strengthen those ties and unlock further opportunities across both economies.
It also supports the Albanese Government's commitment to ensure multinationals pay their fair share of tax by strengthening cooperation between our tax authorities and aligning with OECD and G20 best practices to curb profit shifting.
The treaty will enter into force once both countries complete their domestic implementation processes.
A summary of its main features is available on the Treasury website.
