Detailed comparison
| Side-by-side comparison of taxation, cost of living and scores between the two countries. |  France | |
|---|---|---|
| Taxation | ||
| Dividend tax | 12%, Edge to this country | 31.4% |
| Capital gains tax | 12%, Edge to this country | 31.4% |
| Corporate tax | 18%, Edge to this countryScale10-18% | 25% |
| Wealth tax | None | Yes, IFI (real estate only) |
| Direct inheritance | 0%, Edge to this country | 45%Scale5-45% |
| Cost and real estate | ||
| Monthly FIRE budget | €2,200, Edge to this country | €2,700 |
| Cost-of-living score | 58.2, Edge to this country | 38.5 |
| Reference city | Split | Paris |
| City-center 2-bed rent | €950, Edge to this country | €2,450 |
| Safety and FIRE score | ||
| Insecurity | 1.5, Edge to this country | 2.0 |
| FIRE Ultimate V3 score | 98.4, Edge to this country | 64.6 |
Verdict
- Croatia wins on long-term gains (0% after two years against the 31.4% French flat tax), on the absence of a wealth tax and of direct-line inheritance tax, and on the cost of living, all with no exchange-rate risk thanks to the euro.
- France keeps the edge on ongoing dividend income for small portfolios through its allowances and system, on the depth of its public healthcare, and on the density of its infrastructure and services.
- Verdict: for a long-term investor who holds and lives on capital gains, Croatia is clearly more advantageous; for a retiree living mainly on dividends or attached to public healthcare, the gap narrows sharply.
Frequently asked questions about this duel
Are capital gains really 0% in Croatia against the French flat tax?
Yes for securities and ETFs held more than two years: Croatia exempts them at 0%, where France applies its 31.4% flat tax regardless of holding period. Below two years, Croatia taxes at 12%, still well below the French flat tax. The advantage is therefore greatest for a long-term buy-and-hold investor.
Does Croatia have a wealth tax like the French IFI?
No, Croatia applies no wealth tax, whereas France keeps the IFI on net property wealth above €1.3 million. For a substantial property estate, this is a notable gap in Croatia's favour.
Is inheritance gentler in Croatia than in France?
Yes in the direct line: Croatia exempts at 0% transfers to spouses, descendants, and direct ascendants, while France taxes up to 45% after the €100,000 allowance per child. To pass on an estate in the direct line, Croatia is clearly more favourable.