Today, we bring you a new Smart Update covering a legislative amendment with implications for employment law and related areas. The amendment concerns the establishment and administration of savings and investment accounts and the tax regim aplicable to them.
Law No. 202/2026 introduces Savings and Investment Accounts (SIAs), through which individuals will be able to save and invest voluntarily in order to generate additional income separate from their pension. The accounts will be of two types:
1. Tax-exempt accounts (CEI-S)
These accounts will be funded by the account holder, from which withdrawals will be exempt from income tax and excluded from the calculation base for mandatory social security contributions.
2. Tax-deductible accounts (CEI-D)
Contributions may be made either by the account holder or by the employer with whom the account holder holds their primary employment position. Where employers make contributions on behalf of their employees, such benefits must be provided for in the employment contract or internal regulations. These contributions will be exempt from income tax and excluded from the calculation base for mandatory social security contributions, subject to the aggregate monthly ceiling of 33% of the basic salary, together with other income and benefits falling within this ceiling. Contributions to CEI-D accounts may serve as an additional employee benefit, in accordance with the tax treatment provided for by law.
An individual may simultaneously hold both CEI-S and CEI-D accounts, including with different account providers. The account type cannot be changed once the account has been opened.
For CEI-D accounts, amounts withdrawn by the account holder or, where applicable, their heirs will be subject to a final withholding tax of 10% on the amount withdrawn, calculated and withheld at source by the income payer. For CEI-S accounts, withdrawals will be exempt from income tax. Withdrawals from both types of accounts will also be exempt from health insurance contributions (CASS).
Contributions may only be made until the account holder becomes entitled to an old-age pension, early retirement pension or disability pension or reaches the of 65.
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