You pay taxes once a year after the calendar year ends. 

Step 1: Annual Declaration (Electronic): Between January 1 and May 1, you must log in to the EDS portal (Electronic Declaration System) and fill out form GPM311. The system usually pre-fills most data from your invoices if you use virtual tools. 

Step 2: Pay GPM (Income Tax) to VMI: 

• Payment Code: 1441. 

• Calculation: The rate is 5% for profit up to €20,000, then scales up to 20% for profit up to €42,500. 

Step 3: Pay VSD & PSD to Sodra: 

• Payment Code: 444. 

• Rates: Combined, these are roughly 19.5% of 90% of your taxable income (plus an extra 3% if you participate in the pension accumulation scheme). 

• Monthly PSD: Even if you earn nothing, you must pay a monthly Health Insurance (PSD) contribution of €80.48 (based on the 2026 Minimum Wage of €1,153) by the end of each month. 

Taxes for a business license are mostly paid upfront. 

Step 1: Fixed Income Tax: You pay a flat fee to VMI before the license is issued. The amount depends on your city and activity. 

Step 2: Sodra Contributions: You pay VSD and PSD based on the duration of your license. 

• VSD: 8.72% of the Minimum Monthly Wage (MMA). 

• PSD: 6.98% of the MMA (€80.48/month). 

Step 3: Excess Income: If you earn more than €45,000 , you must declare and pay extra taxes on the excess during the annual declaration in May. 

• Mano VMI / Sodra Portals: Most people simply log in to these portals and click "Pay." They provide direct links to e-banking. 

• Bank Transfer: You can use the payment codes above via your standard bank app.