As of 01.01.2019 all Croatian companies Directors are subject to pension and medical contributions
Starting from January 1st 2019 Croatia has obliged all national companies Directors to pay pension/medical contributions. Many properties in Croatia had been bought in the name of legal entities in Croatia. It helped to optimize taxes and sometimes it was the only way to legally own Croatian real estate due to absence of reciprocity with this or that state. Any foreign citizen can be an official Director of Croatian company, however, it does not give him work permit in Croatia and temporary residence there. However, all CEO are subject to pension and medical contributions now. In case you company has a Croatian Director, he has to receive minimum salary of 5445 kn and pay minimum contributions of 2050 kn per month. In case your company has a non-Croatian Director, he has to get min wage of 8500 kn and pay min contribution of 3100 kn per month. He can be released of those fees only if one proves by submission of A1 form that he is covering those taxes in his mother-country within EU or any other country having relevant agreement in Croatia.
In this connection, we would recommend closing down your Croatian company in case it is used just for owning purposes and tranfer your realty onto physical person. In the beginning 3% property transfer tax seems high cost but overall burden in the end becomes much lower.