Flat-rate expenses 2026

Definition

The standard flat-rate expense scheme (Basispauschalierung, § 17 Abs 1 EStG) lets the self-employed and trade licence holders deduct business expenses as a percentage of turnover instead of collecting every receipt. In 2026 the general rate is 15.00 % of net turnover, capped at €63,000; certain activities get a reduced rate of 6.00 %, capped at €25,200. Prior-year turnover must not exceed €420,000.

Rates and limits by year

The rules

• Reduced rate: for commercial or technical consulting, materially participating managing shareholders, and writing, lecturing, scientific, teaching and educational work.
• Requirements: prior-year turnover of at most €420,000, no obligation to keep books (as there is for a GmbH) and no voluntary double-entry bookkeeping. The tax return must state that the flat rate is being used.
• Deductible on top: goods purchased, wages and wage-related costs, subcontracted work, your own compulsory SVS contributions, pass-through travel costs, the workplace allowance (up to and including 2026; removed by BGBl. I Nr. 62/2026), a share of public transport passes, and the basic part of the profit allowance. The investment-based profit allowance, by contrast, is not available.
• Lock-in when switching: if you switch to deducting actual expenses, you may only switch back after five business years (§ 17 (3)), so a year-end comparison is worth doing.

See also

• Small-business flat rate, the other flat rate, with a higher rate for small turnovers.
• Profit allowance, only the basic part alongside the flat rate.
• Investment allowance, not available with a flat rate.