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Tax Reform

Published January 22, 2026, 11:20
Tax Reform

The new tax reform has come into effect, bringing immediate benefits to citizens, families, and businesses through tax reductions and increased disposable income. The aim is to create a fairer, more modern, and competitive tax system, simpler and more efficient, tailored to the needs of society and the economy. A key feature of the reform is the new tax brackets with an increased tax-free threshold, reaching €22,000 for everyone. Tax rates have been set more proportionally, with 20% for income between €22,001 and €32,000, 25% for income between €32,001 and €42,000, 30% for income between €42,001 and €72,000, and 35% for income above €72,000. The reform also provides support to families through tax allowances based on the number of children. Specifically, allowances of €1,000 for the first child, €1,250 for the second, and €1,500 for the third and each subsequent child are provided per parent, with income limits depending on the number of children. Single-parent families receive the same allowances as families with two working parents. In addition, the reform offers tax incentives for energy upgrades of homes, installation of photovoltaic systems, purchase of electric vehicles, as well as for mortgage interest and first home rent. A tax allowance for home insurance is also introduced. For businesses, the tax on dividends is reduced to 5%, stamp duties are abolished, and a special rate of 8% is introduced for stock options.

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