Croatia has officially become one of the most attractive jurisdictions for digital asset owners. Financial analyst Alessandro Palombo reported that the country has moved from "Purgatory" to "Paradise" in the updated classification of cryptographic states.

For long-term holders, under certain conditions, the effective tax rate is now 0%. Transactions that exchange one cryptocurrency for another are not considered sales and are also not subject to tax.

Croatia has an annual non-taxable limit of €2,500 for short-term earnings and is recorded using the FIFO method. Investors can convert a cryptocurrency to USDT or USDC stablecoins without incurring tax liability. Another important option is the ability to borrow from digital assets, spend them, and repay the debt in two years.