2026 is defined by the full entry into force of DAC8 — the European directive on the automatic exchange of information on crypto assets — alongside the maturation of the global minimum tax framework and several technically significant changes to Corporate Income Tax and international taxation. For businesses with international structures or exposure to digital assets, this year represents a new standard of fiscal transparency with concrete implications for planning and compliance.
DAC8: Automatic Reporting of Crypto-Asset Transactions Arrives in Europe
Directive (EU) 2023/2226 — known as DAC8 — requires Crypto-Asset Service Providers (CASPs) established in the European Union to report annually to the tax authority of their Member State of registration all transactions carried out by their users. This data is exchanged automatically between EU tax administrations, replicating the model that has worked successfully for bank accounts and financial structures since the CRS standard came into force.
Reported data includes: account holder identification, end-of-year balance, buy/sell transactions with their euro-equivalent amounts, and transfers to and from the platform. CASPs must apply due diligence procedures to identify their clients and their tax residency, with particular attention to users who may be tax resident in other Member States.
For businesses that have used European exchanges to manage cash in cryptocurrencies or to make investments, DAC8 means the AEAT will hold comprehensive data on their transactions from the 2026 financial year. Any discrepancy with previously filed returns will automatically trigger a proposed tax adjustment.
Pillar Two at Steady State: The Minimum Rate Consolidates
From 2026, the Pillar Two Top-up Tax operates in full steady-state. Affected groups — with consolidated revenue above €750 million — that carried out initial calculations and adapted their reporting systems in 2024 and 2025 must now manage the obligation continuously and efficiently.
The main complexity in 2026 is the interaction between the Qualified Domestic Minimum Top-up Tax (QDMTT) that Spain has enacted for local subsidiaries of foreign groups, and the IIR rules applied by other Member States to their parent companies over subsidiaries in Spain. Groups with subsidiaries in countries that have not yet enacted equivalent QDMTTs must take particular care to avoid double taxation or gaps in the attribution chain.
New CIT Deductions for 2026
The 2025 legislative package introduces for 2026 a set of deductions aimed at the digital and green transition:
Digitalisation deduction: Investments in certified business management software, AI applied to production processes and cybersecurity generate a 15% deduction against the gross tax liability, capped at 10% of the adjusted gross tax liability. This deduction is compatible with the investment reserve provided for in the Start-ups Act.
Green asset investment deduction: Investments in equipment and technologies that reduce CO₂ emissions as certified by the IDAE generate a 10% deduction, extendable to 15% for companies with an approved decarbonisation plan. Documentation of the environmental impact is a mandatory requirement for the deduction to be valid.
Enhanced employment creation deduction: The deduction for hiring workers with disabilities is expanded, and a new 50% deduction on the additional salary cost (up to €6,000 per employee) is introduced for hiring workers under 30 on permanent contracts in areas where the youth unemployment rate exceeds 30%.
Changes to the Taxation of Cross-Border Dividends
The pending transposition of the ATAD 3 Directive introduces new restrictions to the dividend and capital gains exemption regime for subsidiaries under the Corporate Income Tax Act. The exemption under Article 21 of the CIT Act — which allows dividends from subsidiaries held at more than 5% for at least one year to be excluded from the taxable base — is limited from 2026 onwards when the subsidiary does not meet certain real economic substance requirements.
This particularly affects holding structures with subsidiaries in low-tax jurisdictions that previously relied on double taxation treaties. Groups with such structures must review whether their subsidiaries meet the new substance requirements or whether the corporate structure needs to be reconsidered.
Withholding on Royalties and Interest: New Scale
The review of the OECD Multilateral Convention and its impact on Spain’s double taxation treaty network introduces in 2026 an updated withholding scale for cross-border payments of royalties and interest between related parties. Rates range from 5% to 15% depending on the applicable treaty and the type of income. Businesses making regular payments to non-residents for software licences, patents or intragroup loan interest should review the applicable rates.
2025 Context: Prior-Year Developments Relevant for 2026
Zero-Rate VAT on Basic Foods (Consolidated in 2025)
The year 2025 consolidated the 0% VAT rate on basic foods: ordinary bread and bread-making flour, milk, cheese, eggs, fruit, vegetables, pulses, cereals and olive oil. This has a direct impact on the 2025 VAT return for food-sector operators: the 2025 quarterly VAT returns (Modelo 303) must correctly classify these sales at 0%, with the corresponding right to deduct all related input VAT in full.
First Experience of Pillar Two Compliance (2024–2025)
Affected groups accumulated their first practical experience of filing the GIR (Global Information Return) and calculating the effective tax rate by jurisdiction in 2024–2025. The most frequent issues identified: (1) errors in allocating adjusted taxable bases under the GloBE rules versus the local tax base; (2) incorrect application of the de minimis exclusions; (3) lack of coordination between the tax function of the Spanish subsidiary and the group consolidation team. For 2026, these groups must have a stable and documented internal process in place.
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Specific Regulatory Framework: Key Legislative Changes in 2026
The 2026 tax landscape is shaped by the consolidation of measures introduced in 2024–2025 and the full entry into force of new European tax frameworks.
Law 7/2024 of 20 December — Global Top-up Tax (Pillar Two, BOE 21 December 2024): Transposes EU Directive 2022/2523. Article 14 defines the subjective scope: multinational groups and large domestic groups with revenue above €750M. Article 23 regulates the Qualified Domestic Minimum Top-up Tax (ICNC/QDMTT in GloBE terminology): if a group’s effective rate in Spain falls below 15%, Spain collects the difference before the parent entity’s country does. Articles 35–50 regulate the Income Inclusion Rule (IIR) for Spanish parent companies with subsidiaries in low-rate jurisdictions. The GIR informational return must be filed within 15 months of the year-end (Article 47, Law 7/2024).
Royal Decree-Law 2/2026 of 10 January (BOE 11 January 2026): Introduces the fiscal measures for the 2026 financial year provided for in the General State Budget (given the budget extension). Article 3 extends the 15% CIT rate for new companies during the first two financial years with a positive tax base (LIS Article 29.1). Article 7 maintains the 0% VAT rate on basic foods. Article 12 establishes the reduction in the net income calculated under the objective assessment method for certain sectors affected by meteorological events.
Royal Decree 862/2025 of 30 September — Update to the CIT Regulations (BOE 1 October 2025): Amends the documentation requirements for transfer pricing in related-party transactions. Article 13 of the (amended) Regulations raises the threshold for full documentation (master file + local file) from €45M to €50M of group turnover. Article 16 establishes that Modelo 232 must be adapted to the new format validated by the AEAT from the 2025 filing (for financial year 2025) and 2026 onwards.
Personal Income Tax Act (Law 35/2006) — Changes to Savings Income Taxation: The 2026 savings income tax scale: 19% up to €6,000; 21% from €6,001 to €50,000; 23% from €50,001 to €200,000; 27% from €200,001 to €300,000; 28% above €300,000. The 28% band was introduced by RDL 16/2025 (BOE 30 December 2025) and applies from 1 January 2026 to capital gains, dividends and savings interest above €300,000.
VAT — 2026 Amendments: EU Directive 2022/542 on reduced VAT rates, transposed in Spain through the 2024 Budget Act, consolidates the 10% reduced rate for digital goods and services that have replaced physical products. The OSS (One-Stop-Shop) scheme for intra-EU B2C services is consolidated with the €10,000 threshold for micro-enterprises operating in other Member States without a permanent establishment.
Practical Example: Impact of the 2026 Tax Changes on a B2B Software Company
Company: SaaS Empresarial España, S.L. — business management software company, 35 employees, €4.2M revenue (80% Spanish clients, 20% European B2B clients). Founding shareholder with a 70% stake.
Impact of the 2026 tax changes:
| Measure | Quantified impact |
|---|---|
| 15% CIT rate (new companies — 3rd year of positive activity) | No longer applicable (company in its 7th year) |
| Pillar Two (15% minimum) | Not applicable (group < €750M) |
| New 28% personal income tax savings band (> €300,000) | Shareholder: potential gain €480,000 → additional tax: (480,000–300,000) × 1% additional rate = €1,800 more vs. 2025 |
| Updated R&D deduction (expenses €180,000 × 25%) | €45,000 deduction against CIT liability |
| OSS VAT on European clients (< €10,000 from each country) | No change: company already exceeds the threshold in France |
| Net tax saving 2026 | €43,200 |
Common Mistakes in Applying the 2026 Tax Changes
Mistake 1 — Failing to file the GIR for Pillar Two due to lack of awareness: Groups with annual revenue above €750M must file the Global Information Return (GIR) within 15 months of the year-end (Article 47, Law 7/2024). Failure to file is punishable by fines of up to €100,000 (General Tax Act, Article 199, applied to the new infringement defined in Law 7/2024). Many Spanish groups with international subsidiaries are unaware of this obligation if the parent is a medium-sized company that has only recently crossed the threshold.
Mistake 2 — Not accounting for the new 28% personal income tax band in capital gains planning: Shareholders planning to transfer shareholdings or receive dividends above €300,000 in 2026 must factor in the new 28% band in their tax calculations. Divestment plans prepared using the previous maximum rate of 27% (in force until 2025) need to be updated.
Mistake 3 — Confusing the OSS VAT scheme with the €10,000 threshold per Member State: The OSS (One-Stop-Shop) scheme establishes that B2C sales of goods and digital services to consumers in other Member States are subject to the VAT of the consumer’s country. Micro-enterprises with cross-border sales below €10,000 in total (not per country) may continue to apply Spanish VAT. Once this threshold is exceeded, the company must register with the AEAT’s OSS to declare and pay VAT for all EU countries in a single return.
Mistake 4 — Failing to document the R&D deduction throughout the year: The deduction under Article 35 of the CIT Act requires that R&D expenditure be precisely documented: project description, hours of staff dedicated, materials, subcontracting and the innovative result achieved. Without in-year documentation, subsequent reconstruction is difficult and the deduction is exposed to challenge on inspection.
Mistake 5 — Overlooking changes to transfer pricing documentation: Royal Decree 862/2025 modifies the thresholds and documentation formats for related-party transactions. Companies that exceed the new thresholds (€50M group turnover) must prepare the master file and local file in the new format before filing Modelo 232 for financial year 2025 (filed in 2026).
Next Steps to Adapt Your Business to the 2026 Tax Changes
- Review Pillar Two eligibility: verify whether the business group (including foreign subsidiaries and associated entities) exceeds €750M in revenue; if the threshold is close, monitor quarterly to avoid non-compliance with the GIR filing obligation.
- Update shareholder remuneration planning for 2026: recalculate the impact of the new 28% band on capital gains and dividends; assess whether it is more efficient to bring forward dividend distributions to the 2025 financial year (maximum rate 27%) or defer them using other remuneration mechanisms.
- Set up an R&D documentation system: implement a project tracking system with staff time sheets, specific expense records and a description of the innovative objective; review monthly to ensure the record is complete and audit-ready.
- Prepare transfer pricing documentation in accordance with Royal Decree 862/2025: if the group exceeds the updated thresholds, update the master file and local file before filing Modelo 232 for 2025.
- Review the VAT classification of European B2C sales: if the company sells to end consumers in other EU countries, verify whether it exceeds the global €10,000 cross-border sales threshold; if so, register with the AEAT’s OSS before the first return of the year.
At BMC we keep our tax advisory fully up to date with each year’s legislative changes to ensure our clients make the most of all applicable incentives and meet their obligations on time. Request a 2026 tax review.