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Spain: New direct and indirect tax measures for 2025 and 2026

Royal Decree-Law 16/2025 includes the extension of income tax incentives

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january 20, 2026

Royal Decree-Law 16/2025, published in the official state gazette on December 24, 2025, includes new direct and indirect tax measures for 2025 and 2026, including:

  • Extraordinary waiver of and deregistration from the “immediate supply of information” (ISI) system and the monthly value added tax (VAT) refund (REDEME) regime for 2026
  • Extension of individual (personal) and corporate income tax incentives
  • Maintenance of the limits of the objective assessment regime
  • Approval of new coefficients for the municipal capital gains tax
  • New extension of the corporate suspension on losses resulting from COVID-19

Read a January 2026 report prepared by the KPMG member firm in Spain

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