Third consolidation package for 2026
Government officials have announced measures to consolidate public finances for next year, the so-called third consolidation package. A total of 22 measures are planned as part of this consolidation package, which should bring up to 2.7 billion euros to the state budget, almost half of which should be obtained by saving on state spending. Changes in the VAT rate, the abolition of public holidays and the ban on sales on public holidays, higher levies and some taxes are expected.
The most significant changes brought about by the third consolidation package should include the introduction of the following measures:
Personnel changes in offices and freezing of salaries of officials in ministries and their subordinate offices, other offices as well as salaries of police officers, firefighters, soldiers, while the measure will not apply to teachers, doctors or nurses.
Employers will pay for PN for longer due to the extension of the period in which the employer pays wage compensation during PN from 10 to 14 days.
Freezing of 13th pensions in the years 2026-2028 in the same amount, i.e. 667,30 euros.
Non-payment of social contributions by the state for parents who work or run a business in addition to caring for a child.
Increasing the progressivity of personal income taxation, which will only affect those with above-average income, i.e. those earning a net monthly salary of approximately 3,000 euros. The tax rate will range from 19% to 35% depending on the amount of the tax base and only income above a certain threshold will be taxed. The new taxation will also apply to constitutional officials and members of parliament, whose tax rate will range from 29% to 45%.
Increase in health contributions by 1% for self-employed persons, employees and self-payers, as well as increase in the minimum assessment base from 50% to 60% of the average wage two years ago for self-employed persons. Shorter contribution holidays for self-employed persons from the 1st day of the 6th calendar month after the establishment of the business license.
Cancellation of holidays and sales bans during holidays, specifically on November 17th and in 2026 also on January 6th and May 8th.
Higher VAT of 23% on certain foods that contain increased sugar and salt content, such as sweet and salty snacks, sweetened beverages. The exceptions will be the raw materials themselves, such as salt, sugar, baby food or dairy products.
Limitation of VAT deduction to 50% for vehicles that the entrepreneur also uses for private purposes.
In addition to the above measures, from March 2026, merchants will be required to accept cashless payments via QR code or terminal, and gambling taxes will be increased from 27% to 30%. A general tax amnesty will also be introduced for taxpayers, who will have their fines and penalty interest for unpaid or undeclared taxes to tax and customs authorities waived if they pay the tax arrears or declare additional tax in their tax return.
