Do you have a rented house? Did you know that you can get an extra 40 euros in your monthly salary? All you have to do is this – the executive summary

Anyone with a permanent housing lease can ask their employer for a monthly reduction in withholding tax. In this way, tenants can get an additional 40 euros per month.

This possibility is included in the 2024 state budget, which allows employees to ask their employers for a reduced withholding tax.

Thus, workers now receive an additional €40 per month, to cover increases in the cost of permanent housing.

Who can request this discount?

Only employees with a gross monthly salary (gross salary) of up to €2,700 can ask their employer to reduce the withholding tax, as long as they have a lease or sublease agreement for their first home.

This support also extends to holders of housing loan contracts intended to purchase, build or carry out work on their permanent homes.

Does this lead to an increase in net salary?

No, a net amount of €40 will be added to the worker's salary, however, this only means that the worker will deduct a lower amount to the IRS and that the accounts will be settled the following year, when the worker files his annual IRS return.

When should it be done?

This information must be provided by the employer taking into account the payroll processing deadlines practiced by each company and the accounting adjustments necessary to put the procedure into effect.

If an employer processes payroll on the 10th of every month, for example, its workers must submit that request before that date, to have an impact on the salary they receive at the end of that month.

Do I need to repeat the application every month?

The worker can choose to submit the application in one go, starting from all months of 2024, or request a reduction in the withholding tax only in the months in which he wishes to activate this feature.

Can anyone who does not pay the IRS request a reduction?

no. The withholding tax reduction applies only to those who file monthly contributions with the IRS.

If the contract is not in the worker’s name?

If the contract is not in the worker’s name, a reduction of 40 euros cannot be requested.

What if it is in the couple's name?

Then you can ask both companies for a discount.

Can the employer refuse?

no. As long as the employee meets the access requirements, the employer cannot deny the reduction in withholding tax.

Will anyone who gets the €40 reduction pay more at the IRS the following year?

Withholding tax is an advance from the IRS that a worker must pay annually. By keeping €40 less per month, the worker will pay less to the state. The accounts are settled the following year, with the filing of the annual IRS return.

As smaller amounts are given, there will be less refund (for those accustomed to receiving) or more taxes to pay (for those accustomed to paying).