Spain’s government issued Royal Decree-Law 4/2024 on 26 June 2024, in which it introduced various corporate tax measures for tax periods starting on 1 January, 2024.

The key corporate tax measure related to the regulations governing capitalisation reserves for companies subject to a 25% general tax rate. This regulation has been amended allowing companies to reduce their taxable base annually by 15% (up from 10%) of their equity increase.

Additionally, the period required to maintain the equity and the restricted reserve allocated for this reduction has been shortened to three years (down from five years).

The Royal Decree-Law 4/2024 of 26 June, 2024, went into effect on 28 June, 2024.