Spain's Royal Decree-Law 25/2026 extends emergency energy tax measures under the Comprehensive Response Plan to the Middle East Crisis.
Spain’s government has approved Royal Decree-Law 25/2026 (Real Decreto-ley 25/2026) of 29 September 2026, extending emergency measures first adopted under Royal Decree-Law 7/2026 of 20 March 2026 and Royal Decree-Law 18/2026 of 29 June 2026.
The measures form part of the Comprehensive Response Plan to the Middle East Crisis and address economic pressure, energy market volatility and cost-of-living effects linked to geopolitical conflict and the expiry of earlier relief measures.
The decree was published in the Official State Gazette (BOE) on 30 September 2026. It has six chapters, 37 articles, five additional provisions, one transitional provision and nine final provisions, covering energy regulation, taxation, transport, agriculture, employment and financial oversight. It remains subject to ratification by the Congress.
Value added tax
In October 2026, the standard 21% value added tax (VAT) rate is maintained for supplies, imports and intra-community acquisitions of electricity, natural gas, briquettes and pellets derived from biomass, and firewood.
A 10% VAT rate will apply in November 2026 if the September 2026 consumer price index (CPI) for electricity or natural gas exceeds the September 2025 figure by more than 15%. The rate will also apply in December 2026 if the October 2026 CPI exceeds the October 2025 figure by more than 15%.
For electricity, the reduced rate is limited to customers with contracted power usage under 10 kW and to qualifying vulnerable customers. The natural gas CPI also determines whether the reduced rate applies to briquettes, biomass pellets and firewood. The safeguards for electricity and natural gas operate independently.
Excise duty on hydrocarbons
A fuel excise tax reduction will apply to diesel and unleaded petrol intended for general use. The reduction is EUR 0.20 per litre in October 2026, EUR 0.13 per litre in November 2026 and EUR 0.06 per litre in December 2026.
If the September 2026 CPI is more than 15% higher than in September 2025, the reduction will stay at EUR 0.20 per litre in November 2026 and EUR 0.13 per litre in December 2026. If the October 2026 CPI is also more than 15% higher than in October 2025, the EUR 0.20 per litre reduction will continue in December 2026. The safeguard operates independently for each product.
These reduced rates result in taxation below the minimum levels prescribed by Council Directive 2003/96/EC of 27 October 2003 on the restructuring of the Community framework for the taxation of energy products and electricity (Energy Taxation Directive). The Spanish government has notified the European Commission in accordance with the procedures established in the Directive.
Electricity tax
In November and/or December 2026, the electricity tax rate could be reduced to 0.5% from 5.11% if the September or October 2026 CPI for electricity exceeds the CPI for the same month of 2025 by more than 15%. For non-professional consumption, the Special Electricity Tax could instead fall to EUR 1 per MWh.
Energy market measures
The decree limits the rise in the raw material cost component (Cn) of the natural gas last resort tariff (TUR) to 35% for the 1 October 2026 review and 15% for the 1 January 2027 review. This prevents an unmitigated increase of more than 45% for over 3 million households at the start of winter. Suppliers will recover the deferred costs in tariff reviews from 2027.
Extraordinary winter liquefied natural gas (LNG) storage obligations will apply from 1 November 2026 to 31 March 2027, with the required extra capacity exempt from storage tariffs. The Strategic Reserves Corporation (Cores) is authorised to specify exact geographical locations for reserve releases during supply crises.
Price caps on bottled liquefied petroleum gas (LPG), including butane cylinders of 8 kg to 20 kg, are extended to 30 June 2027. Power factor requirements for renewable generators are also updated so they contribute to grid voltage control, reducing reliance on fossil-fuel power plants for grid stability.
The decree raises the maximum fines under energy market law to deter market manipulation, enforces sustainable aviation fuel targets under EU ReFuelEU Aviation rules, and tightens penalties for fraud in the Energy Saving Certificates (CAE) market.
Agriculture, fishing and transport
Direct fuel subsidies are extended to 31 December 2026 for agricultural producers, livestock farmers, fishing vessel owners and professional road transport operators. Diesel rebates for transport range from five to 19 cents per litre, depending on the month and the CPI safeguard triggers.
The decree also sets rules on state financial compensation for the Single Transit Pass (Abono Único) programme, which aims to encourage public transport use.
Employment and business support
Companies receiving direct crisis aid may not dismiss employees because of higher energy costs until 31 December 2026. Unlawful terminations will be treated as null dismissals, and the state aid must be repaid in full.
Public financing through the Fiex fund is expanded to help small and medium enterprises (SMEs) diversify supply chains and expand internationally.
Oversight and anti-evasion
The National Markets and Competition Commission (CNMC) is directed to analyse the effectiveness and market pass-through of the energy measures and to monitor food price developments.
The decree amends Law 10/2010 on anti-money laundering (AML) to tighten controls on cross-border correspondent banking and crypto-asset service providers, in order to prevent the evasion of international sanctions.
