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.
For guidance on completing travel orders, linking receipts, requesting R1 invoices, and the tax treatment of personal vs. company-name invoices, see Travel Orders and Expense Requirements in Croatia.
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.
Per Diems
Below is a brief guideline for calculating per diems according to Croatian regulations:
The full per diem for a business trip within the Republic of Croatia is €30.00.
For business trips abroad, the foreign per diem applicable to the country being visited is calculated from the time of crossing the Croatian border.
When returning to Croatia, the per diem applicable to the country from which the employee is returning is calculated until the Croatian border is crossed.
For time spent on a business trip between 8 and 12 hours, a half per diem is paid, while for more than 12 hours, a full per diem is paid.
If a business trip involves travelling through several foreign countries, the per diem applicable to each country is calculated when the stay in that country exceeds 12 hours.
If the stay in a foreign country is shorter than 12 hours, that time is added to the time spent in the next country where the stay exceeds 12 hours.
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