Tax Rates as of 01.01.2026
- Withholding income tax on salary: 22%
- Tax-free income: 700 euros per month and 8,400 euros per year, regardless of the person’s total income
- Tax-free income for people of retirement age: 776 euros per month and 9,312 euros per year
- Monthly amount serving as the basis for the minimum social tax obligation: 886 euros, i.e., the minimum monthly social tax payment is 292.38 euros (886 × 33%)
- Unemployment insurance premium: 1.6% for the employee and 0.8% for the employer
- Funded pension (II pillar) contribution: 2%, 4%, or 6%
- Corporate income tax rate: 22/78
- Tax-free daily allowance for foreign business trips:
- 75 euros for the first 15 days of the trip, but for no more than 15 days per calendar month
- 40 euros for each additional day of the trip
- Minimum daily allowance for foreign business trips: 40 euros per day
- Tax-free limit for compensating the use of a personal car: 0.50 euros per business-related kilometer based on a mileage log, but not more than 550 euros per month per employer
- Tax-free limit for representation expenses of legal persons: 50 euros per calendar month, plus 2% of the total personalized payments subject to social tax made during the same month
Self-Employed Persons (FIE) and Taxes (as of 1 January 2026):
- Quarterly social tax obligation: 877.14 euros (886 × 3 × 33%)
- Income tax rate: 22%
- II pillar pension contribution for FIE participating in the funded pension scheme: 2%, 4%, or 6% based on taxable income
- Unemployment insurance premium for FIE: Not required
