New decree updates VAT, personal income tax, and corporate tax and extends relief for socially vulnerable groups and DANA storm victims.
The Spanish Tax Agency has introduced new tax measures under Royal Decree-Law 16/2025 of 23 December 2025, published in the Official State Gazette on 24 December. The decree aims to support socially vulnerable groups and implement urgent tax and social security measures.
It includes updates and extensions to personal income tax rules, along with selected corporate income tax and VAT provisions.
Corporate tax
- With effect for tax periods beginning on or after 1 January 2025 that have not ended by 25 December 2025, investments in new FCV, FCHV, BEV, REEV or PHEV vehicles, as defined in Annex II of the General Vehicle Regulations, approved by Royal Decree 2822/1998 of 23 December, used for economic activities and which become operational in tax periods beginning in 2024, 2025 and 2026, may be freely depreciated, as well as investments in new electric vehicle charging infrastructure that become operational in tax periods beginning in 2024, 2025 and 2026.
- With effect for tax periods beginning on or after 1 January 2025, the freedom of depreciation for investments using energy from renewable sources is extended to the 2026 fiscal year.
VAT
- The limits for the application of the simplified VAT regime and the special regime for agriculture, livestock and fishing are extended until 2026.
- The deadline for resignations and revocations for 2026 to the simplified and special VAT regimes for agriculture, livestock and fishing will be from 25 December to 31 January, 2026. However, resignations and revocations submitted from 1 December to 24 December, 2025, will be valid, and the chosen option may be modified within the period indicated in the previous paragraph.
- From 26 December to 31 January 2026, an extraordinary period of resignation from keeping VAT records through the Tax Agency’s electronic office is established; that will also be the deadline to request the extraordinary deregistration from the monthly VAT refund register for the year 2026.
Personal income tax
- The deadline for waivers and revocations for 2026 to the objective estimation method of Personal Income Tax will be from 25 December to 31 January 2026.
- The quantitative limits that define the scope of application of the objective estimation method in the Personal Income Tax are extended to 2026, with the exception of agricultural, livestock and forestry activities, which have their own quantitative limit based on income volume.
- Effective from 1 January 2025, the imputation percentage of 1.1% provided for in Article 85 of the LIRPF will apply in the case of properties located in municipalities where the cadastral values have been revised, modified or determined by a general collective valuation procedure, provided that they have come into force from 1 January 2012.
- From 26 August 2025, aid for personal damages granted to those affected by forest fires and other civil protection emergencies occurring between 23 June and 25 August 2025, will be exempt from Personal Income Tax.
- The deduction for energy efficiency improvement works in homes is extended until 31 December 2026.
- The deduction for the acquisition of plug-in electric vehicles and fuel cell vehicles and the installation of charging points is extended until 31 December 2026.
- The consolidated text of the General Social Security Law is amended, eliminating the universal obligation to file an Personal Income Tax return for all beneficiaries of unemployment benefits and subsidies; therefore, for the 2025 Personal Income Tax return and subsequent years, these beneficiaries will only have to file a return if applicable in accordance with Article 96 of Law 35/2006 on Personal Income Tax.
DANA aid
- Articles 19 and 20 of this Royal Decree-Law 16/2025 adopt new tax measures in relation to those affected by the DANA storm in different municipalities between 28 October and 4 November 2024, which on the one hand involve the extension of the direct aid provided for in Article 11 of Royal Decree-Law 6/2024, of 5 November, to joint ownership communities and other entities without legal personality that carry out economic activities.
The application form may be submitted at the Tax Agency’s electronic headquarters from 21 January 2026 to 11 March 2026. However, entities that have submitted the form enabled for the aid provided for in article 11 of Royal Decree-Law 6/2024, of 5 November will not have to submit this form, provided that the favorable resolution has not been issued by the competent Administration by 25 December 2025. The aid that is agreed upon, if applicable, will be paid by bank transfer from 2 February 2026, the granting agreement being considered notified by receipt of the transfer. - On the other hand, an exemption is established in Personal Income Tax and in Corporate Income Tax for certain urgent aid granted by the Valencian Community to facilitate the maintenance of employment and economic reactivation, intended for self-employed workers and companies in the areas affected by the DANA storm in the Valencian Community.
