Three major tax changes affecting families, consumers, and workers are introduced by the new bill from the Ministry of National Economy and Finance, which has been put out for public consultation. At the center of the reforms are a new children’s investment savings account, an extension through the end of 2027 of the tax deduction for electronic receipts from high tax-evasion-risk professions, and an increase in the tax-free threshold for tips to €6,000 per year — with retroactive effect from January 1, 2026.
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The key changes in the new tax bill
1. Children’s savings account: State match of up to €1,200 per year
Starting in 2027, the new Individual Investment Account for Minors will be launched, targeting children up to two years of age who were born in 2025 and 2026. For every euro deposited by parents or other individuals, the state will contribute an equal amount, up to a maximum of €1,200 per year. For example, if €50 per month is deposited into the account, the government will add another €50. This means annual private contributions of €600 will be matched by €600 in state funding. If contributions reach €100 per month, the annual state contribution will amount to €1,200. The cap will increase by 10% every five years. Total private contributions can reach up to €10,000 per year per child, and not only parents but also grandparents and other relatives will be eligible to make contributions. The funds will be invested in financial products such as stocks, bonds, and mutual funds, with four investment profiles available depending on the level of risk parents wish to take on:
– Conservative: 100% in fixed-income investments and 0% in equities.
– Balanced: 70% in fixed-income investments and 30% in equities.
– Growth: 30% in fixed-income investments and 70% in equities.
– Dynamic: 0% in fixed-income investments and 100% in equities.
Parents will not be permitted to withdraw funds from the account before the child reaches adulthood. Exceptions are provided in the event of the death of a parent or legal guardian, the death of the account beneficiary, or serious health issues affecting the child, which must be certified by a public hospital. In the event of an unauthorized withdrawal, the full amount of state contributions made up to that point — along with any returns generated — must be repaid to the government.
2. Electronic receipts: Tax deduction extended through 2027
For one more year — through 2027 — tax incentives will continue for taxpayers who pay electronically for services provided by professionals in sectors with a high risk of tax evasion. The measure stipulates that 30% of expenses paid via electronic means across 20 professional categories can be deducted from taxable income, up to a maximum annual deduction of €5,000. The list includes, among others, lawyers, plumbers, electricians, painters, hair salons, and taxis. The goal is to encourage the use of electronic payments and reduce cash transactions, offering consumers a direct tax benefit. A special provision applies to medical, dental, and veterinary service expenses, which are counted at double their value toward meeting the required electronic transaction threshold. This threshold corresponds to 30% of the taxpayer’s annual actual income. For example, an electronic payment of €300 for these specific services counts as €600 in eligible expenditure.
3. Tips: Tax-free up to €6,000 per year
The tax-free threshold for tips received by workers is being raised to €6,000 per year, up from the previous limit of €300 per month. The new provision covers both tips paid directly by customers and those received through digital platforms, with retroactive effect from January 1, 2026. The change primarily benefits seasonal workers in tourism and hospitality, who tend to accumulate larger tip amounts over a few months. Under the new rules, a worker employed for six months can receive up to €1,000 per month in tax-free tips, provided the total amount does not exceed €6,000 within the calendar year.
