Corporate Income Tax

• Corporate tax rate: 22% on gross distributions and 22/78 on net distributions.
• Dividends: Starting from 01.01.2025, the 14% reduced tax rate on regularly distributed dividends will be removed. All profit distributions will be taxed at 22/78.

VAT Rates

• Current rate: 22% (until 30.06.2025).
• New rate from 01.07.2025: 24%.
• VAT registration threshold: €40,000.
• Special VAT rates:
• Accommodation services: 13%.
• Periodicals: 9%.

Motor Vehicle Tax

• Applies to passenger cars (M1, M1G), vans (N1, N1G), motorcycles, mopeds, off-road vehicles, and wheeled tractors.
• Payment deadlines: June 15 and December 15 each year.
• New from 01.01.2025: A registration fee will apply when a vehicle is first registered or upon the first change of ownership after 01.01.2025 (if the fee hasn’t been paid already).

Security Tax

• Starting 01.07.2025: 2% turnover tax.
• Starting 01.01.2025: 2% tax on income for individuals.
• Starting 01.01.2026: 2% tax on company profits.
• Companies must start paying security tax in advance by the 10th day of the third month of each quarter.

Labor Taxes

Employer’s Liability: 33.8%

• 33% social tax.
• 0.8% unemployment insurance contribution.
• Minimum social tax: €270.60/month, based on a minimum monthly salary of €820.
• This applies even if the employee works part-time.
• Note for board members: To receive health insurance, board members must also pay the minimum social tax of €270.60.

Employee’s Obligations (Withholding Payments)

• Personal income tax: 22%.
• Unemployment insurance: 1.6%.
• Funded pension contribution: 2%, 4%, or 6%.
• Tax-free income: Up to €654/month or €7,848/year. To claim, submit a written request to the employer.
• Note: The “tax hump” will continue to apply in 2025.
• Tax-free income for retirees (from 2025): €776/month or €9,312/year. This replaces the general tax-free income.

Minimum Wage

• Hourly rate (from 01.01.2025): €5.31.
• Monthly minimum wage (full-time): €886.