Caution at the (Interest) Barrier!
Does your company stay below the threshold of EUR 3 million net "interest" expense p.a.?
Please make sure you're on the safe side!
Even now in 2026, the topic of the interest barrier rule 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 threshold exemption, which prevents the interest barrier rule from applying when net interest expense of EUR 3.0 million p.a. is not reached.
However, there is a risk of an unplanned breach of the threshold, at which point the interest barrier rule applies in full (the so-called "guillotine effect").
Please keep a close eye on this EUR 3.0 million net interest expense limit for the full year and coordinate with your tax advisor!
And make sure to maintain a sufficient safety margin in good time!
There are very simple and quickly implementable solutions!
Feel free to reach out to me!
Caution at the (Interest) Barrier!
