The 2025 Budget Law has confirmed that, for the 2025, 2026 and 2027 tax years, the value of goods and services provided to employees, along with amounts paid or reimbursed by employers for domestic utility bills (integrated water services, electricity and natural gas), rent for the primary residence or interest on mortgages for the primary residence, will not be included in taxable income, up to a total limit of €1,000.
This limit increases to €2,000 for employees with tax-dependent children, including children born outside of marriage who are legally recognised, adopted children, foster children and affiliated children.
In practice, this confirms the provisions already in place for 2024.
Additionally, amounts paid or reimbursed by employers for rent and maintenance costs for properties rented by employees hired on open-ended contracts between 1 January and 31 December 2025 will not be included in taxable income during the first two years of employment, up to an annual limit of €5,000.
