Caution at the (Interest) Barrier!
Does your company stay below the de minimis threshold of EUR 3 million net "interest" expense p.a.?
Make sure you're on the safe side!
Also in 2026, the topic of the #InterestBarrier remains relatively quiet.
This is likely due to the fact that the majority of domestic companies do not consider themselves affected by the interest barrier rule.
These companies assume they can rely on the de minimis threshold provision, which prevents the interest barrier from applying as long as net interest expense does not exceed EUR 3.0 million p.a.
However, there is a risk of an unplanned breach of this threshold, at which point the interest barrier rules apply in full (the so-called "guillotine effect").
This risk is currently heightened by the rise in variable interest rates:
👉 The 3M Euribor stood at approximately 2.03% at the beginning of 2026 and has most recently been at 2.67%.
👉 Please keep a close eye on this de minimis threshold of EUR 3.0 million p.a. net interest expense and coordinate with your tax advisor!
👉 Please ensure a sufficient safety margin in good time!
There are very simple and quickly implementable solutions!
Let's talk!
#Treasury #CFO #LBO #PrivateEquity
- This image was generated by AI. -
Caution at the (Interest) Barrier!
