What is a Per Diem Allowance?
In Croatia, a per diem allowance (called "dnevnica") is a tax-free payment made to an employee to cover meal costs and other personal expenses during a business trip away from the employer's registered office or the employee's place of residence.
Key rules to understand:
- The per diem covers only meal and personal expenses
- It does not include accommodation or transport costs (those are reimbursed separately)
- It applies only to trips lasting at least 8 hours
- Without a valid travel order ("putni nalog"), the per diem becomes taxable income
The per diem system is part of Croatia's broader framework for tax-free employee benefits. Employers are not required to pay per diems, but when they do, the amounts are tax-free up to the prescribed limits.
Tax-Free Per Diem Rates for 2026
Domestic travel (within Croatia)
| Trip duration | Tax-free amount | Notes |
|---|---|---|
| Over 12 hours | up to 30.00 EUR | Full per diem |
| 8 to 12 hours | up to 15.00 EUR | Half per diem |
| Under 8 hours | 0 EUR | No per diem entitlement |
Reduction for provided meals
If the employer or a third party provides meals during the trip, the per diem must be reduced:
| Provided meals | Reduction | Example (full per diem of 30 EUR) |
|---|---|---|
| One meal (lunch or dinner) | 30% | 30 - 9 = 21.00 EUR |
| Two meals (lunch and dinner) | 60% | 30 - 18 = 12.00 EUR |
Breakfast included in hotel accommodation is not considered a provided meal and does not reduce the per diem. This is an important distinction that many newcomers to the Croatian system overlook.
International travel per diems
Per diem rates for business trips abroad are set by a Government decree and vary by destination country:
| Country | Full per diem (over 12h) |
|---|---|
| Austria, Germany, France | 90 EUR |
| Italy, Slovenia, Spain | 80 EUR |
| Switzerland, Belgium, Netherlands | 90 EUR |
| UK, Czech Republic | 80 EUR |
| Hungary, Poland, Romania | 70 EUR |
| Bosnia and Herzegovina, Serbia, Montenegro | 50 EUR |
| USA, Canada, Australia | 100 USD |
For trips lasting 8 to 12 hours, 50% of the full international per diem applies. For countries not listed in the Government decree, the default rate is 50 USD per day.
If a trip covers multiple countries, the per diem is calculated based on time spent in each country. For stays exceeding 12 hours in a given country, the full per diem for that country applies. If no single country exceeds 12 hours, the per diem of the country where the trip starts or ends is used. For one-day trips, the per diem of the destination country applies.
The Travel Order: Required Documentation
The travel order ("putni nalog") is a written document through which the employer approves a business trip. Without it, per diem payments and travel expense reimbursements are not tax-deductible.
Mandatory elements of a travel order
| Element | Description |
|---|---|
| Employee name | The person traveling |
| Destination | City or location of the business trip |
| Purpose of travel | The reason (meeting, seminar, site inspection, etc.) |
| Date and time of departure | When the trip begins |
| Date and time of return | When the trip ends |
| Means of transport | Personal car, bus, train, airplane |
| Signature of authorized person | Employer's approval |
| Expense calculation | Per diem, transport, accommodation, other costs |
The travel order must be issued before departure. Issuing it retroactively is a risky practice that the Tax Administration may challenge during an audit.
Attachments to the travel order
The following must be attached to the travel order:
- Accommodation receipts
- Transport tickets (airplane, bus, train)
- Toll receipts
- Mileage log (for private car use)
- Invitation letter or participation confirmation (for seminars, trade shows)
Mileage Reimbursement: Using a Private Car for Business
When an employee uses their personal car for business purposes (called "loko voznja" in Croatian), the employer can reimburse them at a fixed rate per kilometer.
| Item | Amount |
|---|---|
| Rate per kilometer | 0.50 EUR/km (tax-free) |
| Mileage log | Mandatory (date, destination, kilometers) |
| Vehicle registration | Must be registered to the employee, a family member, or a third party with a valid loan agreement |
What the mileage log must contain
| Data point | Example |
|---|---|
| Date | March 15, 2026 |
| Starting point | Zagreb, company office |
| Destination | Varazdin, business partner |
| Purpose | Business meeting |
| Kilometers driven | 164 km (round trip) |
| Reimbursement | 164 x 0.50 = 82.00 EUR |
Mileage reimbursement and per diem are not mutually exclusive. For the same trip, an employee can receive both a per diem and mileage reimbursement.
Accommodation and Transport Costs
Accommodation
Accommodation costs are tax-free in full when supported by a receipt. There is no upper tax-free limit, but the costs must be reasonable and aligned with the purpose of the trip.
Transport
| Type of transport | Tax-free amount |
|---|---|
| Public transport (train, bus, airplane) | Actual cost with receipt/ticket |
| Employee's personal car | 0.50 EUR/km |
| Taxi (justified cases) | Actual cost with receipt |
Toll charges and parking fees incurred during a business trip are tax-free with a receipt, regardless of whether the employee uses a personal or company car.
Calculation Example: Two-Day Trip to Split
An employee based in Zagreb travels to Split for a two-day business meeting, using their personal car.
Step 1: Per diem calculation
| Day | Duration | Per diem |
|---|---|---|
| Day 1 | Departure at 06:00, arrival at hotel | 30.00 EUR (full) |
| Day 2 | Meeting, return at 20:00 | 30.00 EUR (full) |
| Total per diem | 60.00 EUR |
Step 2: Mileage calculation
| Route | Km | Reimbursement |
|---|---|---|
| Zagreb - Split (round trip) | 760 km | 760 x 0.50 = 380.00 EUR |
| Total mileage | 380.00 EUR |
Step 3: Other expenses
| Expense | Amount | Document |
|---|---|---|
| Hotel (1 night) | 95.00 EUR | Receipt |
| Toll (round trip) | 48.00 EUR | Receipt |
| Parking | 10.00 EUR | Receipt |
| Total other expenses | 153.00 EUR |
Step 4: Total calculation
| Item | Amount |
|---|---|
| Per diem | 60.00 EUR |
| Mileage | 380.00 EUR |
| Accommodation | 95.00 EUR |
| Toll + parking | 58.00 EUR |
| Total tax-free | 593.00 EUR |
JOPPD Reporting
Tax-free travel expenses must be reported on the JOPPD form (Jedinstveni obrazac poreza, prireza i doprinosa, which translates to the Unified Form for Tax, Surtax, and Contributions). This form does not make the amounts taxable. It simply ensures they are reported to the Tax Administration.
| Field | Value |
|---|---|
| Type of income | Tax-free income |
| Recipient identifier | Employee (OIB) |
| Amount | Total travel expenses |
| Filing deadline | By the 15th of the month following the month of payment |
If travel expenses are paid above the tax-free limits (for example, a per diem exceeding 30 EUR), the excess amount is reported as taxable income with contributions and income tax calculated accordingly.
Common Mistakes to Avoid
The Tax Administration pays particular attention to travel orders during audits. Each of these mistakes can result in per diem payments being reclassified as taxable income.
| Mistake | Consequence |
|---|---|
| No travel order | Per diem becomes taxable income |
| Travel order issued after the trip | Tax Administration may challenge tax-free status |
| Per diem above the prescribed limit | Excess is taxed as salary |
| No receipt for accommodation/transport | Costs are not tax-deductible |
| Per diem and field allowance claimed for the same day | Not permitted. You can only claim one |
| No mileage log for private car use | Reimbursement is not tax-deductible |
| Missing purpose of travel | Tax Administration may challenge the business nature |
| Fictitious trips | This constitutes tax fraud, which can lead to significant fines and legal prosecution |
Per Diem vs Field Allowance
Croatia distinguishes between per diem (dnevnica) for occasional business trips and field allowance (terenski dodatak) for regular field work. Understanding the difference matters because they cannot be combined.
| Criterion | Per diem (Dnevnica) | Field allowance (Terenski dodatak) |
|---|---|---|
| Purpose | One-time business trip | Regular field work |
| Duration | Occasional | Continuous (daily) |
| Amount | Up to 30 EUR/day | Up to 30 EUR/day |
| Documentation | Travel order | Field work log |
| Stacking | Cannot be paid simultaneously for the same day | Cannot be paid simultaneously for the same day |
For any given day, an employee may receive either a per diem or a field allowance, never both. The Tax Administration enforces this strictly.
Frequently Asked Questions
What is a per diem and when is it paid?
A per diem (dnevnica) is a tax-free allowance for meal and personal expenses during a business trip away from the employer's office. It is paid for trips lasting at least 8 hours.
How much is the per diem for domestic business travel in 2026?
For trips over 12 hours, up to 30 EUR (full per diem). For trips of 8 to 12 hours, up to 15 EUR (half per diem). Trips under 8 hours do not qualify.
Is a travel order mandatory for per diem payment?
Yes. The travel order is required documentation without which the per diem is not tax-free. It must be issued before departure and contain all prescribed elements (date, destination, purpose, means of transport).
How is mileage reimbursement calculated?
Private car use for business purposes (loko voznja) is reimbursed at 0.50 EUR per kilometer driven. The employee must maintain a log with dates, destinations, and kilometers.
Is the per diem reduced if a meal is provided?
Yes. If one meal (lunch or dinner) is provided, the per diem is reduced by 30%. If two meals are provided, it is reduced by 60%. Breakfast included in hotel accommodation does not count as a provided meal.
Are per diems reported on the JOPPD form?
Yes. Tax-free per diems and travel expenses are reported on the JOPPD form under the appropriate tax-free income code, even though they do not count as taxable income for the employee.
This guide is for informational purposes only and does not constitute legal or tax advice. Tax rules change frequently. Consult a qualified Croatian accountant or tax advisor for your specific situation. Last verified against official sources on the date shown above.