- Key Tax Reforms:
- Reduction of social security contributions by 1 percentage point.
- Abolition of the business tax for all natural persons, including freelancers and the self-employed.
- Introduction of a 3-year income tax exemption for rental properties up to 120 sqm, rented between September 8, 2024, and December 31, 2025, with a minimum 3-year lease if previously vacant or short-term leased.
- New Tax Exemptions and Extensions:
- Exemption from premium tax on health policies for children up to 18 years old.
- Tax exemption for voluntary business benefits for new parents up to EUR 5,000 per child.
- Extension of the suspension of capital gains tax on the transfer of immovable property until December 31, 2026.
- Extension of the VAT exemption for new building construction in 2025.
- Business Incentives and Compliance:
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- Standardization of tax return submission dates and installment payments, with discounts for early submission.
- New measures to support business reorganizations/transformations and reduced share capital thresholds for SME reorganizations.
- Enhanced tax incentives for scientific research, angel investors, and commercial exploitation of patents.
- Introduction of a participation exemption for intragroup dividends and capital gains from non-EU entities, under specific conditions.
- Introduction of a new cruise tax and climate crisis resilience fee on tourist accommodations.
Source Orbitax
