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• Deemed dividend distribution rule repealed, allowing full retention of profits.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.