Overview of the Most Important Legislative Changes Since 2026

Tax amnesty or general tax pardon

During the first half of 2026, taxpayers can take advantage of a general tax pardon and pay tax arrears incurred up to 30 September 2025 without penalties and interest, or declare additional tax without the risk of sanctions. The amnesty does not apply to arrears incurred after 1 October 2025 or to penalties not directly related to tax arrears.

VAT deduction for passenger vehicles from 1 January 2026 to 30 June 2028

A new VAT deduction regime applies to passenger cars (M1) and certain motorcycles (L1e, L3e). From 2026, the VAT deduction for passenger vehicles will be limited to 50% and applies to purchases, leasing, rental (except short-term), and all operating costs. Full VAT deduction will only be possible in specific cases if the vehicle is used exclusively for business purposes (e.g. taxi services, driving schools), with the requirement to keep electronic records of journeys and notify the tax office. More information about the VAT deduction limitation for cars can be found in our previous article.

Higher VAT will make food more expensive

If you buy food with a higher sugar or salt content, you will pay a higher VAT rate from 2026, namely 23% instead of 19%. VAT on basic foods such as sugar, salt, or baby food remains unchanged.

Increased assessment base and higher health contributions for self-employed

From 2026, health insurance contributions for employees will increase from 4% to 5%, and for persons with disabilities from 2% to 2.5%. Self-employed persons will pay contributions based on a higher minimum assessment base, 60% of the average wage instead of 50%. Contribution holidays for new self-employed persons are shortened from 12 to 6 months, and the obligation to pay social contributions arises from the sixth month of business activity.

Changes in taxation of individuals and legal entities

From 1 January 2026, four progressive personal income tax brackets will be introduced: 19%, 25%, 30%, and 35%, with the higher rate applying only to the portion of income above the relevant threshold. The special tax rate for constitutional officials and members of parliament increases from 5% to 10%. Corporate tax rates remain unchanged, but companies with a turnover above EUR 5 million will pay a minimum tax of EUR 11,520 per year.

Higher travel allowances for business trips

From the beginning of 2026, the basic compensation for the use of road motor vehicles on business trips will increase. The new basic allowance per kilometer will be EUR 0.090 for two-wheeled, three-wheeled vehicles, and quad bikes, and EUR 0.313 for passenger vehicles. A new feature is that when using a trailer with a quad bike or passenger car, the basic allowance increases by 15%.

Lower unemployment benefit

From 1 January 2026, the unemployment benefit will be paid at 50% of the daily assessment base during the first three months, dropping to 40% in the fourth month, 30% in the fifth month, and 20% in the sixth month.

Financial transaction tax no longer applies to sole traders

From 1 January 2026, sole traders will no longer be required to pay the financial transaction tax. This exemption also applies to all individuals – for example, artists, actors, athletes, and other persons performing activities based on contracts outside of business, regardless of turnover.

Higher employer costs for employee sick leave

From 2026, the employer will pay income compensation for employee sick leave for 14 days instead of 10. For the first 3 days, the compensation will be 25% of the daily assessment base, and from the 4th to the 14th day, 55%. The Social Insurance Agency will start paying sickness benefits from the 15th day of incapacity.

Changes in revenue registration

Parliament has approved a new law on revenue registration, which from 1 January 2026 extends the obligation to use a cash register to all entrepreneurs receiving revenue for goods or services, including professions that previously did not have this obligation. From 1 January 2026, stricter penalties apply, as well as the obligation to display an information notice at the point of sale, and the introduction of a technical tax identification number (TIN). From 1 March 2026, it will also be necessary to enable cashless payments from EUR 1, including QR payments.

More detailed information on selected areas can be found in our previous article.