Value added tax
Change in the taxation of restaurant and catering services
A reduced VAT rate of 10% applies to food and beverage services. From the New Year, the reduced VAT rate will no longer apply to the serving of alcoholic beverages containing more than 0,5 % alcohol by volume.
Health insurance
Increase in health levies
With effect from 1 January 2024, the amount of health levies for both employees and self-employed persons increases from the current 14% to 15%. In the case of employees, the employer will pay a health levy of 11% for the employee and the employee's share will remain as before at 4%.
Retirement pension savings
From the New Year, the share of the mandatory contribution to old-age pension savings (Pillar II) is reduced from the current 5.5% to 4%.
Help with repaying your home loan
With effect from 1 January 2024, it will be possible to draw assistance if an individual's mortgage has become significantly more expensive due to an increase in the interest rate on the mortgage loan. In order to qualify for such assistance, the individual must meet the following conditions, among others:
Ø the mortgage contract must be concluded before 1 January 2024
Ø the amount of the monthly instalment has increased due to the increase in the interest rate
Ø the beneficiary is entitled if his average income, together with his co-borrower, is no more than
1.6 times the average wage two years ago
Ø income includes other income (e.g. sale of property) and dividends (profit shares)
In assessing the income for 2024, the average wage for 2022 is taken into account, which was EUR 1 304. 1.6 times this average wage amounts to EUR 2 086.40. If the income of the debtor and co-debtor for 2024 is higher than EUR 2 086,40, no State aid will be payable.
The amount of the allowance is 75 % of the difference between the monthly instalment paid and the previous instalment, up to a maximum of EUR 150 per month:
Increase repayments | Amount of allowance for increased mortgage repayments |
100 euros | 75 euros (75 % x 100) |
150 euros | EUR 112,50 (75% x 150) |
200 euros | 150 euros (75% x 200) |
200 euros and more | 150 euros (discounted amount) |
Please note that the legislative changes adopted by Parliament still need to be approved by the President's signature. She will either sign the law in the coming days or return it to Parliament for further discussion.
