Changes in Dividend Taxation for Business Directors and Owners
October 18, 2026
Many business owners and directors declare very low salaries, around €500 per month, while receiving high dividends. This allows them to avoid taxes and contributions to the Social Insurance Fund. In the future, a new tax reform will change this situation, requiring them to pay contributions on dividends. Additionally, if they choose to declare higher salaries, they will gain more benefits from the state, such as social pensions. This practice was legal before, but the upcoming changes will likely impose financial burdens on them.