Cost of running a company
What a d.o.o. owner pays monthly: director salary, contributions, taxes, accounting.
It helps to split the costs into two stages. Before the permit you run the company: accounting, registered address, bank, taxes. After the permit is granted on an employment basis, the director salary and its contributions are added. Knowing both stages lets you plan the budget from the start.
- Corporate tax
- 22%
- VAT / threshold
- 22% / €60,000
- Contributions (emp./empr.)
- ~23% / ~16%
- Accounting
- €100-250/mo
After the permit: director salary and contributions
To keep an employment-based residence valid, the director must earn at least the minimum salary. Example on a current calculation: gross about €1,522, net about €1,024, full employer cost about €1,782 per month. Employee contributions of roughly 23.1% are withheld from gross (pension 15.5%, health 6.36%, long-term care 1%, employment 0.14%, parental 0.1%, plus a fixed mandatory health contribution); on top of gross the employer pays its own contributions. Exact rates and amounts depend on the year.
Corporate tax & dividends
Company profit is taxed at 22%. Distributing profit to the owner as dividends is taxed on top of that. Balancing salary against dividends is a matter of tax planning that we review case by case.
VAT
VAT registration is mandatory once turnover exceeds €60,000 per year; below that you may operate without VAT or register voluntarily. The standard VAT rate is 22%, the reduced rate 9.5%.
Before the permit: running the company
Outsourced bookkeeping with a local firm typically costs €100-250 per month depending on transaction volume and staff. It is not legally mandatory but is necessary in practice for correct reporting.
Reference information. Confirm the exact terms for your case on a consultation.