Corporate & Business Tax
Corporate Income Tax increases from 12.5% to 15%, aligning with OECD Pillar Two requirements.
Loss Carry-Forward extended from 5 to 7 years.
R&D Super-Deduction: 120% deduction on qualifying R&D costs extended through 2030.
Entertainment Deductions increase from ~€17,086 to €30,000 per year.
Flat 8% tax on gains from crypto asset disposals and share-based remuneration under approved employee stock schemes.
Shareholder & Investment Income
Special Defence Contribution (SDC) on dividends reduced from 17% to 5% for actual distributions.
SDC on rental income and deemed dividend distribution abolished.
Deemed dividend distribution rule repealed, allowing full retention of profits.
Personal Taxation & Deductions
Tax-Free Threshold raised from €19,500 to €22,000.
New Progressive Income Tax Brackets:
- €22,001–€32,000: 20%
- €32,001–€42,000: 25%
- €42,001–€72,000: 30%
Above €72,001: 35%
Family & Student Deductions (per parent):
1st child: €1,000
2nd child: €1,250
3rd+ child: €1,500
Income eligibility: up to €100k for 1–2 kids, up to €150k for 3–4, and up to €200k for 5+.
Housing & Green Incentives:
Mortgage interest/rent deduction up to €2,000
Green investments up to €1,000
Home insurance for natural disasters up to €500.
Stamp Duty & Compliance
Stamp duty abolished for most transactions, excluding limited exceptions (e.g., real estate, banking, insurance).
Enhanced Tax Administration: adoption of broader compliance measures, traceable payment requirements, and expanded powers for the Tax Commissioner, aligning with EU tax transparency standards.
