Citizens who want to invest part of their savings could get a new option, a special investment account on which earnings from investments would not be taxed.

Through it, they could invest in stocks, bonds, and funds, under rules that determine how much money can be paid in and what it can be invested in. As N1 writes, it is a draft law being debated in Parliament.

One person, one account

According to the proposal, the account could be opened by any adult taxpayer, but only one. Over time, a total of no more than 200,000 euros could be paid into it. If no money is withdrawn for five years from the first payment, another 50,000 euros could be paid in, the N1 portal states. This is the upper limit for payments, not the amount that must be held to open the account.

The account would be used to purchase financial products, for example stocks, bonds, and shares in investment funds. A citizen could thus spread money across multiple investments and reinvest the earnings made. However, the value of those investments can also fall; the tax benefit does not mean the return is guaranteed.

Investments also have limits

According to the current proposal, at least 20 percent of investments during the year would have to be linked to the Croatian financial market. If more than 20,000 euros is invested in the account, no more than half of the total investments would be allowed to be directed into securities of a single issuer. These rules are still being discussed, so they may change before the law is passed.

Money could be withdrawn at any time

The proposal provides that a citizen may request a payout whenever they want, without tax on earnings generated by investing through the account. However, withdrawing money earlier would mean losing the possibility of paying in an additional 50,000 euros after five years. For now, the investment account cannot be opened; the rules will apply only if the law is passed.