Changes in Income Tax on Pensions: What Has Changed for Pensioners 0 15

The State Revenue Service (SRS) points out that a tax refund is only possible if the income tax has actually been paid.

Starting from 2025, a portion of the pension up to 1000 euros per month will not be subject to income tax. This means that for a significant number of pensioners, the tax on pensions will no longer be withheld, and consequently, there is no need to reclaim it by submitting an annual income declaration. The SRS explains that these changes ensure that people receive higher incomes immediately—every month throughout the year, rather than only in the following year after submitting the declaration.

The changes that came into effect last year are part of a broader tax policy revision that included the introduction of a fixed tax-free minimum, simplification of income tax rates, and other measures aimed at increasing the disposable income of residents, with particular attention to low and middle-income individuals and pensioners.

The SRS informs that the income declaration for 2025, along with receipts for justified expenses, must be submitted by those seniors who receive a pension exceeding 1000 euros per month, as well as those who work or receive other income subject to income tax.

As before, the declaration can include expenses for medical treatment and education, as well as documents for justified expenses of a spouse, parents, or children. For example, this means that children who have paid income tax can attach documents for justified expenses of their parents to their declaration.

The limit for justified expenses for an individual remains unchanged—the total amount must not exceed 50% of annual income, but not more than 600 euros per year. When submitting the declaration for 2025, anyone from whom income tax has been withheld can reclaim 25.5% of the specified amount.

To determine whether a tax refund is due, it is easiest to use the SRS Electronic Declaration System, where the declaration forms automatically calculate the possible tax overpayment, the SRS explains.

Pensioners who do not use the internet can receive assistance in preparing and submitting their declarations at the unified customer service centers of the state and municipalities or at the customer service centers of the SRS.