On 23 December 2015, the Croatian Ministry of Finance announced in the Official Gazette that the related party interest rate from 1 January 2016 will be 5.14%. The rate had been 7% until 30 October 2015, and reduced to 3% for the period 31 October 2015 to 31 December 2015.
The related party interest rate applies as a minimum interest rate for interest income on cross-border financing between related parties when the Croatian resident provides the loan, and as a maximum rate for the deduction…