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An overview by Garrigues, Taxand Spain
A Royal Decree was recently announced in Spain as part of a wider response to the economic impact of the crisis in the Middle East. The measures focus on lowering energy costs and providing targeted tax relief for individuals and businesses.
Key tax measures include temporary reductions in VAT and excise duties on electricity, natural gas, fuels, and related energy products, alongside a lower electricity tax rate. These reduced rates are expected to apply until 30 June 2026, subject to inflation thresholds.
The legislation also extends personal income tax credits and corporate income tax incentives, including accelerated depreciation, to encourage energy‑efficiency improvements, renewable self‑consumption installations, and the uptake of electric vehicles and charging infrastructure.
The full overview by Eduardo Abad Valdenebro from our Spanish member firm Garrigues can be read here.
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