How to open a flat-rate trade (Paušalni obrt) without stress
You know that feeling when you want to start a business, but just thinking about the bureaucracy gives you a headache? Enter the flat-rate trade. It’s hands down the most popular setup for beginners. Thanks to super low taxes and minimal paperwork, it’s perfect to legalize your freelance gigs. Grab a coffee, let’s break it down.
What exactly is a flat-rate trade?
Here is the deal: a flat-rate trade isn’t a separate legal entity, it’s simply a tax model. Instead of doing complex math to pay taxes on your exact profit, you pay a fixed "flat-rate" tax based on your income tier. The best part? You don’t need a fancy accountant or a shoebox full of receipts.
Steps to get started
The great news is that you can do mostly everything online via the e-Građani portal. You’ll need a catchy business name, an address, and your primary activity codes. Once registered, you set up a dedicated business bank account and register with the Tax Administration, plus the pension and health funds.
How much is this going to cost me?
Your monthly costs will mostly consist of fixed social contributions (which are even cheaper if you already have a full-time job!). You’ll also pay quarterly taxes. Just add a small fee for your business bank account and maybe a neat app to send out invoices, and you are good to go.