Draft: 9% instead of 15% on personal income from 2027
TLDR
- DRAFT — not adopted. Parliament has not voted on it, so nothing changes until it is adopted.
- Income tax is not abolished. Only the top 15% rate on personal earnings (salaries) would be removed.
- Before: 0% up to €700, 9% from €700.01 to €1,000, 15% above €1,000. Bill: 0% up to €700, 9% on everything above €700.
- Up to €1,000 of taxable income there is no difference; above €1,000 the tax would be lower. Applies from 1 January 2027 if adopted.
gov.me has published a bill amending the Law on Personal Income Tax (document dated 18 September 2026). It is only a proposal: Parliament has not adopted it and it is not published in the Official Gazette. The text may change during the procedure.
It is important what the bill does not do: income tax is not abolished. The bill has two articles. Article 1 replaces Art. 10(1)(1), which covers personal earnings under Art. 12(2)(1) (salaries). The new rate is 0% on the part of taxable income up to €700.00 and 9% on the part above €700.00.
Before: 0% up to €700.00, 9% from €700.01 to €1,000.00 and 15% from €1,000.01. Under the bill the 15% rate disappears and 9% applies to the whole part above €700.00. Up to €1,000 of taxable income there is no difference. Above that the tax is lower: for taxable income of €1,500 it would be €27 + €75 = €102 now, and €72 under the bill, so €30 less. This is our illustrative calculation from the rates in the text, not an official estimate.
The bill does not touch the other points of Art. 10, so the rates for self-employment and other sources do not change. Under Article 2, the law enters into force on the eighth day after publication in the Official Gazette and would apply from 1 January 2027. Practically: no action is needed. Payroll for 2026 stays on the current rates. We will follow whether the bill is adopted and update this item.