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Significant changes to the application of Personal Income Tax from 2025

28.01.2025

Minimum wage

  • In 2025, the national minimum wage is set at EUR 740 per month.
  • For employees in the construction sector, the minimum monthly wage (for a standard full-time schedule) is EUR 1,050.

Differentiated non-taxable minimum abolished

The previous approach—where the non-taxable minimum depended on the level of total taxable income—has been abolished. From 2025, a fixed non-taxable minimum is introduced:

  • 2025: EUR 510/month, EUR 6,120/year
  • 2026: EUR 550/month, EUR 6,600/year
  • 2027: EUR 570/month, EUR 6,840/year

PIT rates

From 2025, two progressive PIT rates apply to taxable income:

  • 25.5% — annual income up to EUR 105,300
  • 33% — annual income above EUR 105,300

Additional 3% PIT rate for very high income

An additional PIT rate of 3% is introduced for income above EUR 200,000.
The tax base for this additional rate is intended to include:

  • taxable income, and
  • certain capital income that is exempt from PIT, such as dividends, dividend-equivalent income, deemed dividends, and liquidation proceeds.

Capital income

  • The applicable tax rate is increased from 20% to 25.5% for:
    • capital gains, and
    • capital income that is not capital gains.

Microenterprise tax

  • The microenterprise tax rate remains unchanged — 25%.

Allowances and deductible expenses

Dependent allowance

  • The allowance for dependants in 2025 remains unchanged: EUR 250/month, EUR 3,000/year.

Eligible (deductible) expenses and refund

For eligible expenses (medical and education expenses, contributions to endowment life insurance and Pension Level III, and donations), the refund for 2025 is calculated at 25.5%.

  • The maximum annual amount of eligible expenses remains unchanged: EUR 600 per family member.

Employer-paid benefits (PIT-exempt limits increased)

  • Employer-paid childbirth benefit: PIT-exempt amount increased to EUR 500
  • Employer-paid funeral benefit: PIT-exempt amount increased to EUR 500
  • Employer gifts to employees: PIT-exempt amount increased to EUR 100

Note / Contacts

This article is for informational purposes. For tax legislation application in a specific case, we recommend contacting our tax consultants: