A company car that you use on the weekend? A company phone for personal calls? A company apartment where the manager lives? All of this is personal use of company assets and has a specific tax treatment — the so-called "weekend tax.".
In this manual, an accounting firm Rodi Consult (Varna) explains when weekend tax is due, how the personal use portion is determined, and how to optimize it — updated for 2026.
In short: When a company asset is also used for personal needs, a "weekend tax" of 3% per year is due on the portion of the expenses for personal use. The portion is determined by area/kilometers or by a fixed percentage. You can choose to be taxed under the CITA (at the expense of the company) or under the PITA (as income of the person).
What is a weekend tax?
When an asset is owned by a company, its costs reduce profits and corporate tax. But if the asset is also used personally, the government taxes this portion with a personal use tax. The portion of the accounting expense corresponding to personal use is called expenses in kind. It should not be a representational or social expense, and applies to both owned and leased assets. In the case of tax depreciable assets, the tax depreciation is taken as the basis.
When is weekend tax NOT due?
- when it is for use agreed remuneration/rent to the company (then the costs are at the expense of the user);
- when the asset is used for personal use only (taxed as income under the Personal Income Tax Act);
- when the expense is personal income under Art. 11, para. 3 of the Personal Income Tax Act (e.g. the company pays a personal tax);
- for services, unless they are directly related to a company asset (e.g. insurance or mobile services for the company phone/car).
How is the personal use portion determined?
The law provides specific rules by type of asset:
- Real estate — total costs × (personal use area / total area) or by hours.
- Vehicles — by kilometers/hours traveled, or at a fixed percentage of 50%. With 50%, a driving license is not required.
- Other assets (phones, laptops) — 20% of the costs, unless you document another amount.
Example (car, 50%): with total annual expenses of €6,000, personal use is €3,000 (50%), and tax is €90 (3% × €3,000).
Size and declaration
The tax is 3% on the value of personal use, is determined and paid on an annual basis with the annual tax return by June 30. Both the tax and the personal use expenses are recognized for tax purposes.
CIT or PIT – the choice
Personal use is also a form of non-monetary income for the user. Therefore, the law gives a choice: to tax according to CPC (tax weekend 3%, at the expense of the company, non-taxable for the person) or Personal Income Tax Act (as the person's income, at his expense). The election is annual; if you do not choose the CITA, the PITA applies by default.
FAQ
What is a "weekend tax"?
„"Weekend tax" is the colloquial name for the tax on the personal use of company assets. When a company asset (car, property, telephone) is also used for personal needs, a tax of 3% per year is due on the portion of the expenses corresponding to personal use.
When is weekend tax NOT due?
It is not due when a fee/rent has been agreed to the company for the use; when the asset is used only for personal needs (then it is income under the Personal Income Tax Act); when the expense is income of the person under Art. 11, para. 3 of the Personal Income Tax Act; as well as for services, unless they are directly related to a company asset.
How is personal use of a car determined?
Optional: based on kilometers (or hours) traveled for personal versus shared use, or a fixed percentage of 50% of the costs. With fixed 50%, a travel book is not required - an invoice for the cost is sufficient.
How much is the tax and when is it declared?
The tax is 3% on the value of personal use. It is determined, declared and paid on an annual basis with the annual tax return by June 30. The tax and expenses for personal use are recognized for tax purposes.
Can I avoid weekend tax?
You can choose to tax personal use under the Personal Income Tax Act — as non-cash income of the individual, instead of under the Personal Income Tax Act. The choice is made each year in the annual return; if you do not choose the Personal Income Tax Act, the Personal Income Tax Act applies by default.
The conclusion
Personal use of company assets is perfectly legitimate, but carries weekend tax or personal income tax. Properly determining the personal use portion and choosing the regime can save you money — and protect you from penalties during an audit.
Do you use a company car or property personally? Explore Rodi Consult accounting services or is contact us. Phone: +359 893 474 576.
This article is for informational purposes only and does not constitute tax advice. Please consult an accountant for your specific situation.
