Hi,
Tax systems tend to be complicated, but here is some info...

The main tax in Croatia is Value Added Tax (VAT) and it is currently set to 25 %, which is unfortunately one of the highest rates in Europe. VAT used to be 23 %, but was increased in recent years due to the problems with state financing.

This means that all the goods you buy in shops are taxed 25 %, and this must be clearly stated on the receipt. Some goods are taxed lower (milk, etc.).

Other taxes worth mentioning are income taxes, and this is a bit complicated matter, but all in all Croatians pay around 50% on their salary. It is common thing in Croatia to state the salary as net (after tax). This means that if average salary is 5000 Kunas (divide by 7.5 to get Euros), this means that gross salary was around 10.000 Kunas, and half of that went to the state, including: health insurance, pension, income tax, etc.

If you are buying a house or a flat, there is a 5 % tax (VAT is not applicable in this case). This is NOT calculated per the amount you stated in your purchase agreement, but the local tax authority itself will estimate the value of the property you purchased, and will issue a 5 % tax.

If you are opening a business in Croatia, then your capital gain tax is 20% if your yearly sales were above 3 million Kunas, and it is 12% if your gross sales were below that limit.

Cheers!
Danijel