A Christmas bonus in Croatia in 2026 is tax-free up to 700 euros, but that amount covers the whole year and all occasional bonuses together, including holiday pay (regres) and the Easter bonus. A gift for a child under 15 is tax-free up to 140 euros per child and has its own limit. The amounts are the same as in 2025, according to the Income Tax Ordinance (NN 16/2025) and the amendments in force from 1 January 2026 (NN 157/2025).
This guide is for employees in Croatia who want to know how much their employer can pay them tax-free, and for small employers and sole traders planning the payment. We go through the seven rules that cause the most confusion, with worked examples. This is not tax advice for your specific case; if in doubt, ask an accountant or the Croatian Tax Administration.
Christmas bonus 2026 - quick overview of tax-free amounts
| # | Payment | Tax-free in 2026 | Note | JOPPD code |
|---|---|---|---|---|
| 1 | Occasional bonuses (Christmas, Easter, holiday pay) | 700.00 EUR a year | all together, one limit | 22 |
| 2 | Limit per employee | whole calendar year | across all employers | - |
| 3 | Gift for a child under 15 | 140.00 EUR per child | separate limit | 21 |
| 4 | Gift in kind | 133.00 EUR a year | not reported in JOPPD | - |
| 5 | Performance bonus | 1,200.00 EUR a year | separate limit | 63 |
| 6 | Amount above the limit | - | taxed as salary | - |
| 7 | Employer obligation | no legal obligation | only if in a contract or internal rule | - |
The amounts apply to 2026 and have not changed from 2025. Details on each rule follow below.
1. Christmas bonus and other occasional bonuses: 700 euros a year together
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The most important rule: a tax-free Christmas bonus has no separate amount of its own. Article 7, paragraph 2 of the Ordinance (item 25) sets occasional bonuses as tax-free up to a total of 700 euros a year, and occasional bonuses include the Christmas bonus (božićnica), the Easter bonus, holiday pay (regres) and similar payments. If the employer paid 300 euros of holiday pay in summer, 400 euros remain for a tax-free Christmas bonus.
Occasional bonuses are paid by the employer to its own employees. According to TEB, they can be paid to a bank account, in cash or in kind, for example in gift vouchers, but all of it counts towards the same 700-euro limit.
| Detail | Info |
|---|---|
| Tax-free amount | 700.00 EUR a year |
| What counts | Christmas bonus, Easter bonus, holiday pay and similar bonuses |
| Legal basis | Ordinance, Art. 7(2), item 25 |
| Payment method | account, cash or in kind (according to TEB) |
| JOPPD code | 22 (current year), 61 (previous years) |
Pros: the employee receives the full amount up to 700 euros net, with no tax or contributions, and the employer decides how to split it over the year
Cons: holiday pay and the Easter bonus use up the same limit, so the Christmas bonus is often smaller than employees expect
Our opinion: If you are an employee, look at your payslips before December and add up holiday pay and the Easter bonus. That way you know how much can still come tax-free and will not be surprised if the Christmas bonus is smaller than last year.
2. The limit applies to the whole year, across all employers
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The 700-euro limit applies per employee for the whole calendar year, not per employer. Under Article 7, paragraph 4 of the Ordinance, if an employee changes jobs during the year or works for two employers, they can receive a total of 700 euros in occasional bonuses tax-free, added up across all employers.
In practice, the employee gives the new employer a written statement of how much in occasional bonuses they have already received. The new employer may then pay only the difference up to 700 euros tax-free. The same rule applies to the performance bonus.
| Detail | Info |
|---|---|
| Period | calendar year (1 Jan - 31 Dec) |
| Applies to | each employee, not each employer |
| Changing jobs | written statement of amounts already received |
| Legal basis | Ordinance, Art. 7(4) |
| Also applies to | performance bonus |
Pros: a clear rule regardless of the number of employers, the employee knows exactly how much is left
Cons: someone who changes jobs late in the year may get no tax-free Christmas bonus, because the limit was already used up on holiday pay at the old employer
Our opinion: If you change jobs in the second half of the year, keep your last payslip from the old employer. The statement on bonuses received is quicker to fill in when you have the amounts in front of you.
3. Child gift: 140 euros per child under 15
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The child gift has its own limit and does not use up the 700 euros. It is tax-free up to 140 euros per child per year (Ordinance, Art. 7(2), item 32), for children up to 15. According to RRiF, a child who turns 15 by 31 December still counts, so in 2026 it applies to children born in 2011 or later.
If both parents are employed, each of them can receive a gift for the same child, even when they work for the same employer. That is how the Croatian Tax Administration and RRiF interpret it. For two children, an employee can receive 280 euros tax-free, and if both parents receive the gift, the family can get 560 euros in total.
| Detail | Info |
|---|---|
| Tax-free amount | 140.00 EUR per child a year |
| Child's age | up to 15 (born in 2011 or later) |
| Both parents | each can receive a gift for the same child |
| Legal basis | Ordinance, Art. 7(2), item 32 |
| JOPPD code | 21 |
Pros: separate limit that does not reduce the Christmas bonus, applies to every child and to both parents
Cons: ends when the child turns 15, and the employer is not obliged to pay it
Our opinion: For an employer, the child gift is a cheap way to show appreciation, since there is no tax or contributions on it. If your company pays a Christmas bonus but no child gift, it is worth suggesting.
4. Gift in kind: 133 euros a year
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Alongside a cash Christmas bonus, the employer can also give a gift in kind, such as a holiday hamper, up to 133 euros a year. According to TEB and RRiF, this comes from Article 22, paragraph 3 of the Ordinance, and such a gift is not reported on the JOPPD form.
A gift in kind should be distinguished from an occasional bonus paid in kind. A gift voucher given as a Christmas bonus uses up the 700-euro limit, while a holiday hamper given as a gift in kind has its own 133-euro limit. The value is counted including VAT.
| Detail | Info |
|---|---|
| Tax-free amount | 133.00 EUR a year per employee |
| Examples | holiday hamper, gift in goods |
| Legal basis | Ordinance, Art. 22(3) (according to TEB and RRiF) |
| JOPPD | not reported |
| Value | including VAT |
Pros: an extra 133 euros tax-free on top of the Christmas bonus, simple for the employer as there is no JOPPD
Cons: the limit is small, and a gift voucher as an occasional bonus does not belong here but in the 700 euros
Our opinion: A holiday hamper worth around a hundred euros does not use up the employer's Christmas bonus limit, so the two can be combined. Just remember that the hamper's value includes VAT.
5. Performance bonus: 1,200 euros, a separate limit
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Many companies also pay a bonus, a "13th salary" or an annual reward at year end. That is not a Christmas bonus but a performance bonus, which is tax-free up to 1,200 euros a year (Ordinance, Art. 7(2), item 18). The amount is calculated as twice the basic personal allowance of 600 euros, and TEB confirms it.
This limit is separate, so in the same year an employee can receive 700 euros in occasional bonuses and another 1,200 euros as a performance bonus, 1,900 euros tax-free in total. According to TEB, the performance bonus must be paid to a bank account, not in cash or in kind. Some sources still quote 1,120 euros, but that was the 2024 amount.
| Detail | Info |
|---|---|
| Tax-free amount | 1,200.00 EUR a year |
| Calculation | 2.0 x basic personal allowance (600 EUR) |
| Relation to Christmas bonus | separate limit, up to 1,900 EUR in total |
| Payment method | bank account only (according to TEB) |
| JOPPD code | 63 |
Pros: the largest tax-free amount of all, does not touch the Christmas bonus limit
Cons: must go to a bank account, and the one-calendar-year rule across all employers applies here too
Our opinion: If an employer is planning a larger year-end payment, it is smarter to pay part of it as a performance bonus than all of it as a Christmas bonus. The employee gets more net, and the employer pays no contributions on the first 1,200 euros.
6. Above the limit: taxed as salary
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What if the Christmas bonus is larger than the remaining limit? The difference above the tax-free amount is taxed as salary, that is, income from employment: contributions and income tax are charged, according to TEB and the Fiskai guide. The employee still receives the tax-free part in full.
Example: an employee received 300 euros of holiday pay in June, and the employer pays a 1,000-euro Christmas bonus in December. 400 euros go tax-free (700 minus 300), and the remaining 600 euros are treated as salary. If the bonus is given in kind, its value including VAT counts as a net amount and is grossed up, which costs the employer more.
| Detail | Info |
|---|---|
| Amount above the limit | income from employment (salary) |
| Charged | contributions and income tax |
| Example | holiday pay 300 + Christmas bonus 1,000 = 400 tax-free, 600 taxable |
| In kind | value including VAT is net, grossed up |
| Reporting | JOPPD as salary |
Pros: the employee loses nothing, the tax-free part arrives in full and only the excess goes through payroll
Cons: the excess makes the payment significantly more expensive for the employer, especially in kind
Our opinion: It rarely pays for an employer to give more than the limit as a Christmas bonus. If you want to reward employees more, first use the 1,200-euro performance bonus and the child gift, and only then consider a taxable part.
7. The employer is not obliged to pay a Christmas bonus
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The Croatian Labour Act does not require a Christmas bonus. According to TEB and RRiF, an employer must pay a Christmas bonus only if a collective agreement, internal work rules, the employment contract or an employer decision provides for it. The same applies to holiday pay and the child gift.
Where the Christmas bonus is written into a collective agreement or work rules, employees are entitled to it. Where it is not, the payment is the employer's goodwill. If the right exists and the employer does not pay, the employee can claim it like any other part of their pay.
| Detail | Info |
|---|---|
| Labour Act | no obligation |
| Obligation exists if | collective agreement, work rules, contract or decision |
| Also applies to | holiday pay and child gift |
| If not paid | employee can claim the right from the contract or rule |
Pros: the employer decides freely on payment according to its means
Cons: employees without a collective agreement have no guaranteed right to a Christmas bonus
Our opinion: Check your employment contract and work rules before asking about a Christmas bonus. If it is written there, you are entitled to it; if not, it is the employer's goodwill, and that is how the conversation should go.
Worked example: how much an employee can get tax-free
Take an employee with two children under 15 who has received no holiday pay or Easter bonus in 2026. In December, the employer can pay:
| Payment | Tax-free amount |
|---|---|
| Christmas bonus (full occasional bonus limit) | 700.00 EUR |
| Child gift (2 x 140 EUR) | 280.00 EUR |
| Gift in kind (holiday hamper) | 133.00 EUR |
| Total | 1,113.00 EUR |
| Plus a performance bonus | up to 1,200.00 EUR |
With the performance bonus, that is up to 2,313 euros in total without tax or contributions. The same amount paid as salary would go through contributions and tax, so the employee would get less net and the employer would pay more.
Conclusion: how much of the Christmas bonus is tax-free in 2026
| Question | Answer |
|---|---|
| How much is the tax-free Christmas bonus? | up to 700 EUR a year, together with holiday pay and Easter bonus |
| How much is the child gift? | 140 EUR per child under 15 |
| How much is the gift in kind? | 133 EUR a year |
| How much is the performance bonus? | 1,200 EUR a year, separate limit |
| What above the limit? | taxed as salary |
| Must the employer pay a Christmas bonus? | only if set by contract or internal rule |
A Christmas bonus in 2026 is tax-free up to 700 euros, but only if part of that limit was not already used on holiday pay or an Easter bonus during the year. The 140-euro child gift, the 133-euro gift in kind and the 1,200-euro performance bonus have their own limits, so combining them pays off. The amounts have not changed for 2026, and according to TEB the draft tax changes for 2027 from summer 2026 do not touch them.
Ordinance amendments usually come out at the end of December, so we will update this guide if the amounts for 2027 change. If you want to know how to get overpaid tax back, see our guide to tax refunds in Croatia.
Frequently asked questions
How much is the tax-free Christmas bonus in 2026?
The tax-free Christmas bonus in 2026 is up to 700 euros, but that is a shared annual limit for all occasional bonuses: the Christmas bonus, Easter bonus and holiday pay. If the employee has already received holiday pay this year, only the difference up to 700 euros remains for a tax-free Christmas bonus.
Do the Christmas bonus and holiday pay share the same limit?
Yes. Under the Income Tax Ordinance, the Christmas bonus, Easter bonus and holiday pay are occasional bonuses and are tax-free together up to 700 euros a year. The child gift, gift in kind and performance bonus have separate limits.
How much is the child gift in 2026?
The child gift is tax-free up to 140 euros per child a year, for children up to 15. A child who turns 15 by 31 December still counts. If both parents are employed, each can receive a gift for the same child.
Is the employer obliged to pay a Christmas bonus?
Not under the Labour Act. The employer must pay a Christmas bonus only if a collective agreement, work rules, the employment contract or its own decision provides for it. Otherwise, the payment is the employer's goodwill.
What if the Christmas bonus is more than 700 euros?
The amount above the tax-free limit is taxed as salary: contributions and income tax are charged. The employee receives the tax-free part in full, and only the excess goes through payroll and is reported on the JOPPD form.
How we researched
We took the amounts from the official texts of the Income Tax Ordinance published in the Official Gazette (NN 16/2025 and NN 157/2025), and the interpretations on payment methods, employer obligations and gifts in kind from the professional sources TEB and RRiF. Where we could not confirm an amount from the official text (gift in kind), we say so clearly. Information is as of 7 October 2026. This guide is not tax advice for individual cases.
Sources
- Official Gazette - Income Tax Ordinance, NN 16/2025
- Official Gazette - Ordinance amendments, NN 157/2025
- TEB - paying Christmas bonuses and gifts
- TEB - paying performance bonuses 2026
- RRiF - Christmas bonus and other occasional bonuses
- TEB - tax-free payments for the holidays (PDF)
- Fiskai - guide to tax-free payments
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