The pre-filled tax return system significantly eases the process for taxpayers but still requires careful review of the information to avoid costly errors.
If errors or omissions are detected, taxpayers must either contact the relevant authorities for corrections or submit an amended return. If no inaccuracies are found, they can simply hit the submit button. It should be noted that if a pre-filled return is not submitted by the taxpayer, the Independent Authority for Public Revenue (AADE) will do so automatically.
Discounts for Lump-Sum Payment
Tax is generally payable in eight monthly installments, with the first due at the end of July. Taxpayers opting for lump-sum payment are entitled to discounts as follows:
- 4% if submitted by April 30
- 3% if submitted by June 15
- 2% if submitted by July 15, 2026
Last year, over 1.4 million taxpayers paid their tax in a single installment, totaling €2.17 billion, out of approximately €5 billion in total tax liabilities.
Breakdown from AADE:
- ~750,000 taxpayers submitted on time and secured a 4% discount on €1.3 billion in taxes.
- 410,000 taxpayers benefited from a 3% discount on €480 million in taxes.
- 260,000 taxpayers received a 2% discount on €390 million in taxes.
“Tax Divorce” 2026: When It Pays Off, When It Costs, and What Couples Should Watch
Married couples have until March 2 to decide whether to file a joint return or opt for a “tax divorce”.
This choice is not merely formal and has direct tax implications. It benefits couples with tax debts or refunds they don’t want offset, but may be disadvantageous for couples whose deductions or allowances are barely covered by the combined household income. In such cases, separate returns can lead to higher taxes.
The choice is registered via a special application on AADE’s website, and only one spouse needs to make the selection to bind both. If no action is taken within the deadline, the system defaults to a joint return. Couples who filed separate returns last year don’t need to act unless they wish to revoke the choice, which can also be done by the end of February.
When Separate Returns Make Sense
Separate returns are beneficial when one spouse has outstanding debts and the other needs tax clearance or a refund. With a “tax divorce,” the clearance of one is not blocked by the other’s debts, and refunds are not automatically offset against the other’s obligations. This is why more couples are opting for separate filings.
Points of Caution
However, there are important considerations:
- Deductions cannot be shared: Separate returns mean each spouse is assessed solely on their own income and deductions, including housing, vehicles, tuition, or other assets. If these are not justified by reported income, tax may increase, even if the couple overall breaks even.
- Electronic receipts cannot be transferred between spouses, which may lead to additional taxes if one does not meet the required threshold.
- Minor children’s income is added to the parent with the higher income, while children are claimed as dependents by both spouses.
- Social benefits are unaffected, as they are calculated based on total household income, not individual returns.
The “tax divorce” option also applies to couples who have separated, terminated a civil partnership, or where one spouse is in bankruptcy or under legal guardianship, with the burden of proof on the taxpayer.
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