Spain has published Royal Decree-Law 18/2026, introducing temporary reductions to the Hydrocarbon tax, changes to the Tax on the Value of the Production of Electrical Energy, provisions to reinstate VAT and Electricity Tax relief if energy prices rise, and extensions of diesel support schemes for the agriculture and road transport sectors.
The Spanish Tax Agency has announced the publication of Royal Decree-Law 18/2026 in the Official State Gazette (BOE), introducing tax measures under the Comprehensive Response Plan to the Crisis in the Middle East. The legislation, dated 29 June 2026 and published on 30 June, provides temporary tax relief on fuels and electricity while extending financial support for selected sectors affected by higher energy costs.
Hydrocarbon tax
The decree introduces a temporary reduction in the Hydrocarbon tax rate of 15 euro cents per litre in July, 10 euro cents per litre in August, and 5 euro cents per litre in September. However, lower rates may apply in August and September if the variation in the CPI of gasoline or diesel during June or July 2026 exceeds the CPI for the corresponding month of 2025 by more than 15%.
Tax on the value of the production of electrical energy
The Tax on the Value of the Production of Electrical Energy will see reduced instalment payments for the third and fourth quarters of 2026. The decree also sets the tax rate at 3.5% for 2027, half of the standard 7% rate, before reducing it to 0% from 2028 onwards.
VAT and electricity tax
The legislation provides for the possibility of reintroducing reductions to VAT and the Electricity Tax if gas and electricity prices increase. It also notes that, from 1 June 2026, VAT on gas and electricity returned from 10% to 21%, while the Electricity Tax increased from 0.5% to 5.1%.
Extension of fuel support measures
Royal Decree-Law 18/2026 reinforces support measures introduced under Royal Decree-Law 7/2026 by extending the extraordinary and temporary aid for agricultural diesel, administered by the Spanish Tax Agency, until the end of September.
The decree also extends until 30 September 2026 the extraordinary aid for road transport companies to compensate for the price of diesel for professional use. The measure covers both operators entitled to the partial refund of the Hydrocarbons Tax and those not eligible for the refund, including self-employed transport operators, companies with transport licences, and owners of urban buses. The Spanish Tax Agency will continue to administer both subsidy schemes.
