Spain: New direct and indirect tax measures for 2025 and 2026
Royal Decree-Law 16/2025 includes the extension of income tax incentives
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