Updated: April 2026
Croatia, the land of stunning beaches, ancient walled cities and… confusing mileage allowance rates for business travel? Sure, losing yourself in the beauty of Dubrovnik is one thing, but losing yourself in expense reports is probably not what you had in mind for this beautiful country.
Juggling multiple rates—official Croatian allowances, converting them to your local currency and trying to reconcile them with your company's policy—can feel like a complex maths equation, to say the least.
In this guide, we break down the travel allowance rates, how they apply and tips to maximise reimbursements—while you sip espresso in a charming harborside cafe!
How does mileage allowance work in Croatia?
Mileage allowance in Croatia is a reimbursement rate set by the Croatian Ministry of Labour and Social Welfare. This rate is for employees who use their personal car for business purposes. It covers costs associated with vehicle operation, including fuel, maintenance and wear and tear.
As of 2026, the rate is set at €0.50 per kilometre for business use of a private car. This reflects an increase from the previous rate of €0.44 per kilometre, which was in place prior to the transition to euro-based rates in 2024.
This mileage allowance specifically applies to personal cars used for business purposes and does not vary based on the type of personal vehicle used, whether electric, diesel, or petrol. It does not extend to company cars, car rentals or motorcycles.
Note: Mileage allowance rates in Croatia are set by the authorities and may be updated periodically. As of 2026, the current rate is €0.50 per kilometre for business use of a private car. Previous rates applied prior to 2024 under the kuna system, but Croatia now operates fully under euro-based reimbursement rules.
What are the mileage allowance rates in Croatia for 2026?
Personal cars
As of April 22nd 2026, the mileage allowance rate in Croatia for the use of a private car for business-related travel is set at €0.50 per kilometre. This rate applies uniformly, regardless of the type of private vehicle used.
Here’s a quick calculation based on the distance travelled:
This reimbursement is tax-free up to the specified rate of €0.50 per kilometre. Any amount reimbursed above this rate is considered taxable income.
So, if an employee travels 100 km and is reimbursed at a rate of €0.60 per kilometre, the total reimbursement would be €60.
The tax-free portion would be 100 km x €0.50 = €50.
The taxable portion would, therefore, be €60 - €50 = €10
Public transport for business trips
Travel expenses incurred during business trips in Croatia (e.g. trains, buses and trams) can be reimbursed as non-taxable expenses. Here are a few transport cost ranges to help you calculate employee travelling allowances.
Domestic train fares in Croatia
International public transport connections from Croatia
Note: These routes are generally connected with other European rail networks and prices vary based on factors like the type of train, time of booking and seasonal demand.
What is not included in the mileage allowance in Croatia?
The mileage allowance does not include other expenses that may arise during business travel, like daily allowances (per diems), travel insurance and accommodation expenses.
According to the European Commission and Croatian tax laws, the daily travel allowances are as follows:
Source (1), source (2), source (3)
Start your journey to smoother business travel management, start with Perk
Perk gives your team the freedom and flexibility to book flights, accommodation, car rentals and more all within policy while promoting cost-efficiency. With automated policy and in-app approvals, you can set clear policy guidelines and ensure all travel adheres to company regulations while teams have the autonomy to book on their own.
Plus, Perk integrates with popular expense management tools (including Expensify, Pleo and Zoho Expense). Your team can easily submit receipts on the go and eliminate time-consuming manual data entry for everyone.
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See how to save your company time and money on business travel.
Frequently asked questions about mileage allowance in Croatia
- In Croatia, like most European countries (Sweden, Austria, Netherlands, Switzerland, Italy, Slovenia and Poland), mileage allowance claims are usually handled by the employer. This means your company might have a specific mileage claim form that you should submit.
- Croatia’s mileage reimbursement is €0.50 per kilometre, lower than other European countries, like:
- Czech Republic (€0.21/km)
- Austria (€0.42/km)
- Belgium (€0.4269/km)
- Finland (€0.53/km)
- Yes, there are. In Croatia, companies can reimburse employees for work trips, but there's a tax benefit attached. The government has set a specific rate (currently €0.50 per kilometre) that's considered tax-free for employee mileage reimbursement.
- The mileage reimbursement rate in Croatia for government employees is updated very frequently—mostly every last Tuesday of the month . The rate €0.50 per kilometre has been effective as of 2026.
- In Croatia, mileage allowance reimbursements to employees are generally considered outside the scope of VAT. This means that VAT is not charged on these reimbursements.
- No, mileage allowance reimbursements in Croatia do not directly affect your social security contributions. Social security contributions are calculated based on your salary or other forms of income tax, not on reimbursements for work-related expenses like mileage.
- In most cases, the mileage allowance you receive from your employer should not directly affect your visa status. Your visa is tied to your employment contract and approved by the Croatian authorities.
Written by
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Growth Marketing Director
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