Property owners and farmers in DANA Adam zones can claim tax exemptions

The Spanish Government has enacted Real Decreto-ley 33/2026, of November 10, to implement urgent measures in response to the catastrophic damage caused by the DANA (Isolated High-Level Depression) known as "Adam," which occurred between October 17 and 19, 2026. This regulation, published in the BOE (BOE-A-2026-23602), focuses on providing fiscal relief to individuals and businesses in the Mediterranean coastal areas, particularly in the provinces of Valencia, Alicante, Murcia, and the Balearic Islands, where extraordinary rainfall and flooding have severely impacted economic activities and property assets.

What changes

The Royal Decree-law introduces significant tax relief measures specifically designed to alleviate the financial burden on those directly affected by the meteorological event. According to Chapter IV of the regulation, the following changes are implemented:

• Property Tax Exemptions (IBI): Owners of real estate properties that suffered direct damage due to DANA Adam are exempt from the Impuesto sobre Bienes Inmuebles (IBI) for the 2026 fiscal year.
• Economic Activity Tax Reductions (IAE): Businesses and professionals operating in the affected areas will benefit from reductions in the Impuesto sobre Actividades Económicas (IAE) for the 2026 exercise, provided their premises or activities were directly impacted.
• Refund Rights: For those who have already settled their 2026 IBI or IAE payments, the law explicitly allows for the request of a refund of the amounts paid, ensuring that the relief is retroactive to the start of the fiscal year.
• Agricultural Income Tax Relief (IRPF): For the agricultural sector, the law modifies the net income indices established in Order HAC/1425/2025. This reduction in indices will lower the taxable net income for agricultural activities carried out in the disaster zones, providing immediate relief for the 2026 tax year.
• Cadastral Fee Waivers: To facilitate the assessment of damages, the General Directorate of Cadastre will waive the accreditation fee for any property certifications requested in the municipalities included within the scope of this decree.

Context

This emergency legislation is framed within the extraordinary civil protection emergency declared by the Council of Ministers on October 27, 2026. The DANA Adam event was characterized by extreme rainfall, with some areas in La Safor and Marina Alta recording over 700 l/m², leading to severe flooding of river basins such as the Júcar, Segura, and various ramblas in the Mar Menor area.

Legally, this Royal Decree-law acts as an urgent intervention to stabilize the economic situation of the affected territories. It modifies the plan published by Resolution of December 23, 2025 (BOE-A-2025-27098) and amends Additional Provision 5 of Law 35/2006 (BOE-A-2006-20764) with effects from January 1, 2025. Furthermore, the regulation is issued in accordance with Article 120 of Law 9/2017 regarding public procurement in emergency situations and Article 22.2.c) of Law 38/2003 on General Budgetary Law. This legal framework ensures that while local entities lose immediate tax revenue due to these exemptions, the State Treasury will compensate them to maintain local financial stability.

Who is affected and how

The impact of Real Decreto-ley 33/2026 is segmented by the profile of the taxpayer:

• Individuals (Particulars): Property owners whose homes or buildings were directly damaged by the flooding are the primary beneficiaries of the IBI exemptions. They must ensure their property is correctly registered in the affected municipalities to claim these rights.
• Self-employed (Autónomos): Professionals and freelancers with economic activities in the disaster zones can benefit from IAE reductions. If their place of business was damaged, they can mitigate their tax burden for the 2026 period.
• SMEs (Pymes): Companies with economic activities in the affected municipalities, especially those in the agricultural or commercial sectors, are eligible for IAE reductions and can leverage the cadastral fee waivers to document damages for insurance or tax purposes.
• Agricultural and Livestock Producers: This sector faces the most significant structural relief. Due to the destruction of crops, livestock paths, and agricultural infrastructure, the reduction of net income indices for IRPF Withholding Rates 2026: Employee, Freelancer & Rental and general income tax purposes is critical to prevent insolvency in the upcoming tax season.

What to do and when

While the Royal Decree-law provides the legal basis for relief, it does not establish a single, universal deadline for all applications; however, the following actions are recommended based on the nature of the benefits:

• For IBI/IAE Refunds: If you have already paid your 2026 taxes, you should prepare documentation proving the direct damage to your property or business premises. You must contact your local Tax Administration (Ayuntamiento) to initiate the refund process as soon as the local municipal procedures are activated.
• For Cadastral Certifications: You can request property certifications from the Dirección General del Catastro immediately. Under this law, the accreditation fee should not be charged for properties in the affected municipalities.
• For Agricultural Tax Filing: Farmers should keep detailed records of the damage to their crops and infrastructure, as these will be essential when applying the modified net income indices during the 2026 tax filing period.

Because the application of these benefits depends on the specific municipality and the directness of the damage, we recommend consulting with the relevant area at BMC to evaluate your specific situation and ensure all documentation meets the requirements of the local and state tax authorities.