--- alternate_lang: de date_added: '2026-09-11T06:50:16.812000+00:00' date_modified: '2026-09-11T10:01:32.825858+00:00' description: Caution at the (Interest) Barrier! Please keep your distance from the de minimis threshold of EUR 3 million net interest expense! 👉 Because an interest carryfor keywords: - LinkedIn lang: en title: Caution at the (Interest) Barrier! type: article url: http://leasing-pilot.com/en/news/caution-at-the-interest-barrier-3/ --- 1. [News](/en/news/) 2. Caution at the (Interest) Barrier! # Caution at the (Interest) Barrier! Caution at the (Interest) Barrier! Please keep your distance from the de minimis threshold of EUR 3 million net interest expense! 👉 Because an interest carryfor ![Caution at the (Interest) Barrier!](/media/thumbs/news_image/linkedin-3de91fcce0.webp.400x400_q85.webp) Caution at the (Interest) Barrier! Please keep your distance from the de minimis threshold of EUR 3 million net interest expense! 👉 Because an interest carryforward once built up makes it harder to utilize the de minimis threshold in subsequent years! The 3-month EURIBOR has risen again (in September every day > 2.60%), which increases the interest expense on variable-rate financings. This rise can create tax problems for highly leveraged companies such as LBOs. 👉 Because the majority of German companies are only unaffected by the interest barrier rule because they can rely on the de minimis threshold exemption. As a reminder: 🔹 The #InterestBarrier limits the tax deduction of net interest expense, i.e. interest income minus "interest" expenses, to 30% of domestic tax EBITDA, and 🔹 the #DeMinimisThreshold states that the interest barrier does not apply if net interest expense is below EUR 3 million p.a. What many companies underestimate: 👉 Even reaching or slightly exceeding the de minimis threshold of EUR 3.0 million triggers the full effect of the interest barrier – with negative consequences for the current year and for subsequent years! The portion of interest expense that cannot be claimed is, in principle, carried forward indefinitely as an interest carryforward. However, this carryforward has negative consequences for subsequent years: 🔹 The interest carryforward makes it harder (and potentially prevents) drawing the "interest barrier get-out-of-jail-free card" in the form of the de minimis threshold in future years, since the existing interest carryforward is included in the net interest expense of the following year. 🔹 Even if the company remains below the de minimis threshold of EUR 3.0 million in the following year despite the inclusion of the interest carryforward, unrestricted deductibility applies only to the current interest expenses of that year; the accumulated interest carryforward itself is only available for use under more restrictive conditions. 👉 It is therefore better to ensure that you always maintain a sufficient safety margin from the de minimis threshold and do not build up an interest carryforward! 👉 Now the good news: It's quite straightforward! We support you efficiently in reducing the relevant interest expense! Feel free to reach out to me! We can help! What should be kept in mind? Interest is time-based. 👉 The earlier we act on your behalf, the easier it is to optimize for 2026! #LeasingPilot #PrivateEquity #Treasury #CFO [View on LinkedIn](https://www.linkedin.com/feed/update/urn:li:activity:7504068783372926976/)