Self-employed individuals in objective estimation will maintain 2026 tax modules for 2027

The Ministry of Finance has issued Order HAC/1161/2026, of November 4, which develops the objective estimation method for Personal Income Tax (IRPF) and the simplified special regime for Value Added Tax (VAT) for the 2027 tax year. This regulation ensures continuity in the taxation of small-scale economic activities by maintaining the existing framework of modules and indices, providing predictability for self-employed professionals and small businesses.

What changes

The core objective of this Order is to provide the necessary regulatory development for the 2027 tax year, as mandated by the regulations of both IRPF and VAT. Rather than introducing a structural overhaul, the Ministry has opted for stability. According to the text, the structure of modules, signs, and indices applied in 2026 will remain unchanged for the 2027 exercise.

Regarding Personal Income Tax (IRPF), the Order maintains the specific amounts for signs and indices. However, it reinforces certain tax relief measures. Specifically, a 5% reduction on the net yield of modules is established for all taxpayers utilizing the objective estimation method. This is a consistent measure designed to alleviate the tax burden on those whose income is calculated based on fixed indicators rather than actual net profit.

For the agricultural and livestock sectors, the Order provides more targeted relief to compensate for the volatility in input costs. The net yield prior to calculation may be reduced by 35% of the acquisition price of agricultural diesel and by 15% of the acquisition price of fertilizers. Furthermore, the general reduction of the net yield of modules for these specific taxpayers is set at 10%, an increase intended to support the primary sector's stability.

In terms of VAT, the Order confirms that the modules and the instructions for their application within the simplified special regime will remain identical to those used in the immediate previous year.

Context

This Order is not an isolated measure but a mandatory regulatory development required by existing Spanish tax law. It is issued in accordance with Article 32 of the IRPF Regulations (approved by Royal Decree 439/2007) and Article 37 of the VAT Regulations (approved by Royal Decree 1624/1992). These articles grant the Ministry of Finance the authority to determine which activities are eligible for objective estimation and simplified regimes.

By maintaining the structure of Order HAC/1425/2025 (which governed the 2026 exercise), the administration seeks to uphold the principles of legal certainty, transparency, and efficiency. The Ministry has explicitly stated that this approach avoids the introduction of unnecessary administrative burdens and ensures a predictable framework for taxpayers to make informed decisions regarding their tax regimes.

Who it affects and how

Self-employed individuals (Autónomos): This is the primary group affected. Specifically, it impacts those whose economic activities are eligible for the objective estimation method of IRPF and the simplified special regime for VAT. If you are currently under this regime, your tax calculation methodology for 2027 will remain largely the same as in 2026, benefiting from the 5% general reduction on net yield. For those in the agricultural sector, the specific deductions for diesel and fertilizers provide a crucial buffer against rising operational costs.

Agricultural and Livestock Producers: This subgroup receives enhanced benefits. Beyond the standard 5% reduction, they benefit from a 10% general reduction on net yield and the specific deductions for inputs (35% for diesel and 15% for fertilizers). This makes the objective estimation method particularly relevant for maintaining liquidity in these sectors.

Small Businesses and Retailers: While the regulation focuses on the "modules" system (typical of individual entrepreneurs), small retail activities—such as those listed in the Order covering clothing, stationery, or small food shops—that operate under the simplified VAT regime will see no change in their reporting requirements or module structures for 2027.

SMEs (PYMEs): This regulation does not apply to large companies or standard SMEs that operate under the general regime of IRPF or Corporate Tax (IS). The objective estimation method is specifically designed for smaller-scale activities and individual entrepreneurs.

What to do and when

Since this Order maintains the existing structure of modules and indices from 2026, there are no immediate changes to the administrative procedures or the list of eligible activities. For the 2027 tax year, taxpayers should:

• Apply existing modules: Use the same modules and indices that were applicable in 2026 for the 2027 tax settlements.
• Monitor input costs: For those in the agricultural sector, ensure that all documentation regarding the purchase of agricultural diesel and fertilizers is meticulously kept to apply the 35% and 15% reductions correctly.
• Review regime suitability: While the rules remain the same, taxpayers should periodically evaluate whether the objective estimation method remains more advantageous than the direct estimation method (estimación directa) based on their actual expenses and income trends.

This Order does not impose new deadlines or sanctions; it serves as the technical framework for the upcoming tax year. We recommend consulting with the tax department at BMC to evaluate how these maintained modules impact your specific financial planning for 2027.