The fiscal landscape for 2026 has been shaped by a turbulent legislative sequence: Royal Decree-Law 16/2025 (23 December) was rejected by Congress on 28 January 2026; RDL 2/2026 (3 February) reintroduced its tax measures, but was also rejected on 28 February. Nevertheless, the measures that entered into force during the validity of these instruments, together with measures incorporated through other legislative routes, define the tax framework applicable in 2026.
Personal Income Tax (IRPF)
Módulos: extension of limits
The quantitative limits that define the scope of the objective assessment method (módulos) are extended for 2026, maintaining the prior-year thresholds:
- €250,000 of gross income for agricultural, livestock and forestry activities.
- €150,000 of gross income for all other activities.
- €150,000 of purchases in goods and services.
Self-employed workers who had renounced módulos for 2026 through a census declaration or through implied waiver (filing quarterly payments under direct assessment) may revoke that waiver until 30 April 2026.
Deemed property income
With effect from 1 January 2025, the 1.1% rate of deemed income imputation on properties held available by their owners applies in municipalities whose cadastral values have been revised through a general collective valuation procedure with effect from 1 January 2012 onwards.
Electric vehicle and charging point deduction
The 15% deduction for the acquisition of plug-in electric vehicles and hydrogen fuel cell vehicles (maximum deductible base: €20,000) and for the installation of charging points (maximum base: €4,000) is extended until 31 December 2026.
This deduction applies to individuals purchasing qualifying vehicles for personal use. The vehicle must be new and the deduction is taken in the year of registration.
Corporate Income Tax (CIT / Impuesto de Sociedades)
Reduced rates for SMEs and micro-enterprises
The progressive reduction path for the CIT rate for reduced-dimension entities continues:
| Year | Reduced-dimension entities | Micro-enterprises (tranche 1 / tranche 2) |
|---|---|---|
| 2025 | 24% | 21% / 22% |
| 2026 | 23% | 19% / 21% |
| 2027 | 22% | — |
| 2028 | 21% | — |
Reduced-dimension entities are those with net turnover below €10 million in the prior year. The 23% rate applies to the entire taxable base.
Micro-enterprises (net turnover below €1 million and average workforce below 10 employees) apply:
- 19% on the first €50,000 of taxable base
- 21% on the excess
Practical impact on tax provisioning
Companies that were computing quarterly CIT instalment payments (Form 202) using the 24% rate for 2025 should recalculate at 23% for 2026. For an SME with €300,000 in projected taxable base, the reduction from 24% to 23% saves €3,000 in current-year tax. The full year-on-year saving relative to the standard 25% rate is €6,000.
Free depreciation for renewable energy investments
The free depreciation regime is extended for investments in new elements of tangible fixed assets and real estate investments tied to economic activities that use energy from renewable sources. The extension also covers:
- Investments in electric vehicles used in business activities.
- New electric vehicle charging infrastructure.
Free depreciation allows the full cost of qualifying assets to be deducted in the year of acquisition (or in the year of entry into service, depending on the asset), regardless of the accounting depreciation rate. This is a powerful cash flow planning tool: for an investment of €200,000 in qualifying renewable energy equipment, free depreciation produces a €200,000 taxable base reduction in the year of acquisition (saving €46,000 at the 23% SME rate) rather than spreading the deduction over the useful life of the asset.
Suspension of dissolution for losses
The suspension of the obligation to dissolve due to losses (Article 363.1.e of the Spanish Companies Act) is maintained until the close of the financial year beginning in 2026. Losses from the 2020 and 2021 financial years continue to be excluded from the calculation for this obligation.
This is relevant for companies still carrying balance sheet losses from the pandemic years: they are not required to enter the mandatory dissolution procedure solely on the basis of those historic losses.
Value Added Tax (VAT)
Simplified regime and agriculture
The limits for the application of the simplified VAT regime and the special regime for agriculture, livestock and fisheries are extended for 2026, maintaining the same thresholds as prior years.
Implications for businesses exiting simplified VAT
Businesses whose turnover has exceeded the simplified regime thresholds in 2025 will move to the general regime from 1 January 2026. They must have registered their change of regime with the AEAT through the census declaration (Form 036) before year-end.
DANA disaster relief exemptions
Aid grants awarded by the Autonomous Communities of Valencia, Andalusia and Extremadura for maintaining employment and reactivating the economic activity of self-employed workers and businesses affected by the DANA flooding disaster are exempt from taxation for both IRPF and CIT purposes.
This exemption applies to the grants themselves, not to insurance compensation or commercial income recovered following the disaster. Affected taxpayers should document the origin of each payment to correctly classify exempt vs taxable income in their returns.
Summary: action points by taxpayer type
SMEs (net turnover below €10 million):
- Verify the applicable CIT rate is 23% in 2026 and recalculate Form 202 instalments.
- Evaluate renewable energy and electric vehicle investments before 31 December 2026 to capture free depreciation.
- Review dissolution-by-losses position; suspension continues but should not be relied upon indefinitely.
Self-employed workers under módulos:
- Confirm no inadvertent waiver of the objective assessment method was filed.
- Revoke any waiver before 30 April 2026 if applicable.
Micro-enterprises (net turnover below €1 million):
- Verify the 19%/21% rate structure applies (not the 23% ERD rate).
- The 19% rate on the first €50,000 of taxable base reduces the effective rate significantly for smaller businesses.
Individuals:
- Evaluate electric vehicle purchase before 31 December 2026 to claim the 15% deduction (max €3,000 benefit on a €20,000 base vehicle).
Common Mistakes in Applying the 2026 Fiscal Measures
The technical nature of the RDL 2/2026 measures creates recurring errors in practice:
1. SMEs continuing to use the 24% CIT rate for 2026 instalment payments. The reduction to 23% for reduced-dimension entities applies from 1 January 2026. Companies computing quarterly instalment payments under Form 202 using the prior-year 24% rate are overpaying tax in 2026. The surplus is not penalised but represents an unnecessary cash outflow that could otherwise be invested. Recalculate Form 202 at the 23% rate for all 2026 quarterly payments.
2. Misidentifying the micro-enterprise rate thresholds. The micro-enterprise regime (19%/21% split rate) requires satisfying both a turnover test (below €1 million) AND a workforce test (below 10 average employees). Exceeding either threshold causes the ERD 23% flat rate to apply, not the micro-enterprise split. Companies that grew headcount above 10 employees during 2025 should verify whether they remain in the micro-enterprise regime for 2026 before filing quarterly instalments at the lower 19% rate.
3. Claiming free depreciation without verifying asset eligibility. The free depreciation regime for 2026 covers new elements of tangible fixed assets tied to activities using renewable energy sources, plus electric vehicles and charging infrastructure. Hybrid vehicles, used assets, and general-purpose machinery — even if purchased alongside renewable energy equipment — do not qualify. Assets must be new (not previously used), must enter service in the year of application, and must be correctly classified as tangible fixed assets rather than intangible or financial assets.
DANA-affected businesses:
- Document all aid grants received and separately code them in accounting to support the IRPF/CIT exemption claim.
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