Trade or LLC in 2026: What is worth it after consolidation?
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October 6, 2025
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From 1 January 2026 a consolidation package will come into effect, fundamentally rewriting levies a income tax. Thousands of self-employed people will decide whether to stay in business or switch to Ltd.. Below you will find an overview of the changes and practical guidance for your decision.
What is changing for self-employed persons (SZČO) from 2026
Higher minimum social contributions
The minimum assessment base for the Social Insurance Agency will be 914,40 €; the minimum premium is therefore based on €303.11 per month (about 66,09 € more than in 2025).
Health insurance more expensive
The rate increases from 15 % to 16 % and the minimum assessment base will be 762 €. Minimum health insurance: €121.92 per month (+ 14,67 €).
Everyone will pay
From 2026, the obligation to pay social contributions will arise even with zero income – in an amount dependent on income in the previous year.
– If income for 2025 will exceed €9,144, in 2026 you pay min. €303.11 monthly.
– If income for 2025 will not reach €9,144 (or are zero), in 2026 you pay 131,34 € per month (from 26 % of the average wage two years ago).
Shorter "tax holidays"„
For those starting out as self-employed, the time will be reduced from approx. 18 months to 6 months. The obligation to pay social contributions arises from the 1st day of the 7th month of business. From this moment on: €131.34 per month.
New income tax rates for the self-employed (from 2026)
At annual income up to €100,000 the preferential rate remains 15 %.
In revenue over €100,000 Zonal taxation of the tax base is introduced:
– 19 % from part of the tax base to 43 983,32 €,
– 25 % in part €43,983.32 – €60,349.21,
– 30 % in part €60,349.21 – €75,010.32,
– 35 % in part over €75,010.32.
What does this mean for the company?.
Taxes. Ltd. does not pay mandatory contributions as a company. However, be careful with practice: if partner/manager receives salary or remuneration (although irregular), it creates social and health contributions from this income.
Corporate income tax. DPPO rates (according to your documents):
– 10 % to 100 000 €,
– 21 % from 100 000 € to €5 million,
– 24 % above €5 million.
Minimum tax (license). Ltd. pays minimum tax even at a loss: within the range €340 – €11,520 according to the amount of revenue. A sole proprietor does not pay minimum tax.
Establish your LLC now more conveniently
Until December 31, 2025, establish an LLC with a discount of 20 % + 1st month of accounting free.
Other differences that are often forgotten
Tax-free portions and bonuses
Self-employed persons can apply non-taxable parts (per taxpayer, spouse, DDS) and tax bonuses (for children, for mortgage interest paid). Ltd. does not have these benefits.
Accounting and administration
Self-employed people have simpler options: lump sum expenses 60 % (max. 20 000 €) or actual expenses. S. ro must lead double-entry accounting, document everything; lump sum expenses do not exist.
You guarantee the property
Self-employed person is liable all personal property (house, car, savings). S. ro is liable commercial property; companion to the height unpaid deposit.
Overview (year 2026)
| Area | Trade (SZČO) | Ltd. |
|---|---|---|
| Social contributions | min. 131,34 € / 303,11 € monthly | does not apply* |
| Health contributions | min. 121,92 €/month. | does not apply* |
| Income tax rates | if taxable income does not exceed €100,000:
if taxable income exceeds €100,000:
|
|
| Minimum tax | no | €340 – €11,520 |
| Tax-free portions/bonuses |
| is not entitled to NČZD |
| Expenses/Accounting | lump sum expenses 60 % (max 20k) or actual expenses | double-entry accounting |
| Warranty | personal property | business property (+ deposit) |
* Does not apply, if managing director/partner does not receive a salary or remuneration. Otherwise, personal contributions arise from this remuneration.