Official update · 15 December 2025
What changed
The Ministry of Finance’s overview of 2026 tax and financial changes says the monthly fixed non-taxable minimum rises to €550 and the minimum wage rises from €740 to €780. From 1 January 2026, qualifying companies whose shareholders are only individuals may choose an alternative 15% corporate income tax rate when distributing profits as dividends; those dividends are subject to 6% personal income tax.
Who should review this
Employers should review payroll settings and employee communications. Companies considering dividends should compare the available tax treatment with their facts and obtain current professional advice before making a distribution. The Ministry’s overview also describes a 12% VAT pilot for selected basic food products from 1 July 2026, which is mainly relevant to businesses in the affected supply chains.
In force or scheduled?
The payroll, minimum-wage and dividend measures above are described as applying from 2026. The selected-food VAT pilot is scheduled from 1 July 2026. This article is general information, not tax advice; check the current law and VID guidance for your situation.
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