As a reminder: the Budget Law for 2024 (Law 213/2023) introduced an obligation for businesses to take out, by 31 December 2024, insurance covering land, buildings and tangible fixed assets against damage directly caused by natural disasters (such as floods, earthquakes and landslides). Failure to comply was to be penalised by administrative fines and the loss of subsidies. As the implementing provisions were never published, the deadline initially had to be extended to 31 March 2025. However, the implementing provisions were then published only on 27 February 2025, so that this deadline could not be met either. In the end, a staggered entry into force was provided for, depending on the size of the business:
| Size categories pursuant to EU Directive 2023/2775 | Micro-enter-prises | Small enter-prises | Medium-sized enterprises | Large enter-prises |
| Total assets in Euro | 450.000 | 5.000.000 | 25.000.000 | 25.000.000 |
| Revenue from goods and services in Euro | 900.000 | 10.000.000 | 50.000.000 | 50.000.000 |
| Avg. number of employees | 10 | 50 | 250 | 250 |
| Deferral/entry into force | 01.01.2026 | 01.01.2026 | 01.10.2025 | 31.03.2025 |
For classification into the above size categories, it is well known that reference must be made to two consecutive financial years in which, in each case, the number of employees (AWU) as well as the threshold for total assets or for revenue are exceeded.
Since even large enterprises were unable to meet the deadline of 31.03.2025, a 90-day grace period with regard to administrative fines was provided for them.
Agricultural businesses are not covered by the new obligation.
Failure to comply does not give rise to immediate administrative fines; however, access to public subsidies may be denied. The Decree of 18 June 2025 (published in the Official Gazette of 27 July 2025) sets out the subsidies which may be withdrawn where the compulsory insurance is not in place.
As regards the deadlines: for micro-enterprises and small enterprises, the obligation to take out catastrophe insurance is deferred to 1 January 2026, and for medium-sized enterprises to 1 October 2025. No deferral applied to large enterprises; however, in the event of non-compliance the administrative fines were suspended for 90 days.
We recommend that you contact your insurance company without delay.
Attached to this circular you will find the above-mentioned implementing provisions as well as the list of subsidies which may be withdrawn pursuant to the Decree of 18 June 2025.
Annexes:
- Annex A: Implementing provisions 27.02.2025
- Annex B: Decree 18.06.2025
Please do not hesitate to contact us if you have any queries.
Yours faithfully,
Dott. Comm. Josef Vieider
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