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Even if you incorporate in Estonia it wouldn't change anything . Because the company would still be considered tax resident in Croatia .

>But if your company is in Estonia, you are required to charge VAT even if you earn under 60k.

Is this not simply because companies in Estonia enter VAT at 40k per year (rather than 60k)?

(and IIRC Croatia was also at 40k a year ago, now is at 60k with some politicians trying to raise the entry to 100k)

If the clients are cross border - there is no threshold, you have to charge the VAT rate of the country in which they are located from the start.

Estonian fiscal law doesn’t apply if your company operates from Croatia. The only reason you can’t do this in practice is because you’ll have a hard time finding a Croatian accountant willing to work with your Estonian company. That’s something EU-inc aims to address.