Benefits in kind that employees or company executives receive are included in their taxable income if their total value exceeds €300 annually. However, the law provides exceptions for certain types of benefits that are not subject to tax burden, such as loans, stock options, and housing allowances, for which there is no value limit.
Read: These people will see reduced property tax for 2026: See the list
The list of benefits includes the new parental allowance, which amounts to €5,000. This benefit increases for each new family member, while companies that provide it are exempt from tax for the corresponding amount.
Tax-free salary with benefits in kind: What isn’t taxed and what applies to the €5,000 allowance, vouchers and cars
More specifically, among the benefits that are excluded from the calculation of employment income include:
1. Reimbursement of accommodation and meal expenses and daily allowances paid by the employee exclusively for the employer’s business activity purposes.
2. The allowance of up to €5,000 for each child that the employee has, paid by the company within 12 months of birth, increased by €5,000 for each additional child.
3. Vouchers for nursery schools that companies provide to their employees.
4. Reimbursement for travel expenses paid by the employer for business reasons, including reimbursement for electricity costs for charging personal or company vehicles with zero or low emissions up to 50 g. CO2/km, provided they concern travel expenses incurred by the employee during service execution and are proven by legal documents.
5. The value of meal vouchers worth up to €6 per working day, when these are nominal and exchanged only for meals, ready food, food ready for consumption, beverages at a contracted network of stores, based on contracts between the meal voucher issuer and stores, which regulate the acceptance and exchange method of meal vouchers by eligible employees.
6. Premiums paid by the employee or employer on behalf of the employee within the framework of group pension insurance contracts.
7. Premiums paid by the employer for medical and hospital coverage of their staff or for life or disability risk coverage within an insurance contract framework, up to €1,500 annually per employee.
8. Reimbursement for purchasing monthly or annual unlimited travel cards for public transportation.
9. The market value of providing one zero or low-emission vehicle up to 50 g. CO2/km and with a pre-tax retail price up to €40,000, to an employee or partner or shareholder from a natural or legal person or legal entity, for any period within the tax year, with the remaining value considered taxable income.
10. The free charging cost of passenger cars with zero or low emissions up to 50 g. CO2/km at the employer’s facilities.
11. Foreign allowances granted to employees of the Ministry of Foreign Affairs and other public political services.
12. Insurance contributions for pension benefits paid by the employee or employer on behalf of the employee to Professional Insurance Funds for voluntary insurance and to ETEAM Welfare Funds, which do not exceed 20% of the sum of their gross salaries from employment and benefits in kind included in taxable employment income, unless the excess concerns amounts whose payment is mandated by decision of the competent supervisory authority.
13. Shares received by an employee or partner or shareholder from a legal person or legal entity regardless of whether the employment relationship continues, provided the option right is exercised and the acquired shares are transferred after 24 or 36 months from their acquisition.
