Personal Income Tax changes in the 2025 fiscal year

All taxpayers —regardless of the nature of their income— can obtain the draft return through the Draft Return Processing Service (Renta WEB) on the AEAT website.

To access the draft and/or fiscal data, a reference number is required, obtained by providing:

• NIF of the taxpayer(s).
• Issue or expiry date of the DNI.
• Amount in box [0505] of the 2024 Personal Income Tax return (General taxable base subject to taxation).
• If the taxpayer did not file the previous year, they must provide a Spanish IBAN bank account number in which they appear as the holder as of 31 December 2025.

Access via recognised electronic certificates, Cl@ve Móvil, and the mobile app also continues to be available.

If the declaration results in a payment due, you can split the payment into two parts without interest or surcharge:

• 60 % at the time of filing the declaration
• 40 % until 5 November 2026

If you fail to pay the first 60 % on time, the enforcement period begins for the full amount due.

Anyone who splits the payment and does not direct debit the second instalment with a partner bank must make the payment by 5 November 2026 using form 102.

If the declaration results in a payment due, there are several payment options:

• Direct debit payment simultaneously with filing.
• Electronic payment after obtaining the Full Reference Number (NRC).
• Document for partner bank: print it out and visit the financial institution.
• Since 2024, instant transfers via secure e-commerce platforms (BIZUM) and credit or debit card under secure e-commerce conditions.

The option to direct debit the payment from accounts held at non-partner banks within the Single Euro Payments Area (SEPA Zone) is maintained, in accordance with Order HFP/387/2023.

• New boxes are included for the reduction for income from artistic activities obtained in an exceptional manner, both in the employment income section and in the economic activities section under the direct estimation regime.
• New boxes for the regularisation of contributions to the RETA (Special Social Security Scheme for Self-Employed Workers).
• In capital gains and losses: a distinction is made between prizes subject and not subject to withholding, and a new specific section is created for the purchase and sale of shares in listed funds and indexed variable capital investment companies (ETFs and index SICAVs).
• New box for corrective self-assessments whose sole purpose is to request that the previous self-assessment be considered as not filed.

Royal Decree-Law 16/2025, of 23 December, removes letter k) of Article 299.1 of the consolidated text of the General Social Security Law, which required recipients of unemployment benefits to file an annual Personal Income Tax return regardless of their income level.

After this removal, recipients of unemployment benefits will only need to file if they exceed the general thresholds of Article 96 LIRPF (see the filing obligation article).

Aid granted for personal damages to those affected by forest fires and other civil protection emergencies that occurred between 23 June and 25 August 2025 is exempt from Personal Income Tax, pursuant to the Agreement of the Council of Ministers of 26 August 2025 and Royal Decree-Law 16/2025.

Organic Law 1/2025, of 2 January, on measures concerning the efficiency of the Public Justice Service, amends several articles of the IRPF Law with effect from 3 April 2025:

• Personal injury compensation in traffic accidents (Art. 7.d LIRPF): the exemption is extended to other compensation for physical or psychological damages whose amount has not been set by law or judicial ruling, but rather through a mediation agreement or any other appropriate means of dispute resolution. The compensation must be paid by the at-fault party's insurance company, a neutral third party must have intervened, and the agreement must be raised to public deed, within the scale of RDL 8/2004.
• Compensation for dismissal or termination of employment (Art. 7.e LIRPF): compensation agreed in a conciliation procedure before the administrative service as a prior step to social judicial proceedings is expressly exempt. It is clarified that such compensation is not considered "established under agreement, pact or contract".
• Maintenance allowances in favour of children (Art. 7.k LIRPF): the exemption is expressly established when they are set by the settlement agreement under Art. 90 of the Civil Code (or autonomous community equivalent), approved by judicial authority, formalised before the court clerk or in a public deed before a notary.

From 29 October 2024, the provisions of the 5th additional provision of the LIRPF (non-inclusion in the taxable base) apply to aid granted under:

• Decree 172/2024, of 26 November, of the Consell: urgent aid for job retention and economic reactivation of companies affected by the wind and rain storm that began on 29 October 2024.
• Decree 176/2024, of 3 December, of the Consell: urgent aid for self-employed workers in the areas affected by the DANA.

Full details in DANA 2025 aid.

Effective from 1 January 2025, taxpayers who obtain employment income derived from artistic activities obtained in an exceptional manner may apply a reduction on those gross income amounts, provided that the reduction for irregularity under art. 18.2 of the Personal Income Tax Law does not apply.

Applies to income derived from:

• The creation of literary, artistic or scientific works.
• The special employment relationship of artists who carry out their activity in the performing, audiovisual and musical arts, as well as of the people who carry out technical or auxiliary activities necessary for the development of said arts.

This same reduction also applies to income from economic activities related to the arts (see the following section).

Maximum contribution to alternative mutual fund to RETA (2025)

For 2025, the maximum deductible contribution for common contingencies as an alternative mutual fund to the RETA is 16,672.66 euros [0.283 × (4,909.50 × 12)].

Expenses that are difficult to justify in simplified direct estimation

The 5 % rate on net income is maintained for the set of deductible provisions and expenses that are difficult to justify (art. 30 of the Personal Income Tax Regulations).

Freedom of amortisation for renewable energy investments

Extended for 2025 the possibility to freely amortise investments in:

• Facilities for self-consumption of electrical energy using energy from renewable sources.
• Thermal use for own consumption using energy from renewable sources, replacing installations that use energy from non-renewable fossil sources.

Only applies to investments whose entry into operation took place in 2023, 2024 or 2025.

Reduction for artistic activities in direct estimation

From 1 January 2025, taxpayers who carry out certain artistic activities may apply a reduction on the net income from those activities (provided that the reduction for irregular income under art. 32.1 of the Personal Income Tax Law does not apply).

In 2025, the imputation at 1.1 % continues to apply in municipalities whose cadastral value was revised through a general collective valuation procedure that came into force from 1 January 2012.

From 1 January 2025, it is possible to access the vested rights of pension plans and similar supplementary social security systems corresponding to contributions made at least 10 years ago.

With effect from 1 January 2025, articles 66 and 76 of the Personal Income Tax Law are amended: the top-bracket rate of the savings tax base rises from 14% to 15% in the full state tax and from 14% to 15% in the regional tax. For taxpayers whose habitual residence is abroad and for the special regime for workers posted to Spanish territory (impatriates), the top-bracket rate rises from 28% to 30%.

Consult the updated scale on the Tax Agency's electronic headquarters, as all Autonomous Communities have approved their own scales applicable to the general taxable base.

The Principality of Asturias establishes for the first time for 2025 its own amounts for the taxpayer minimum and the minimums for descendants, ascendants and disability.

With effect from 26 July 2025, Law 5/2025, of 24 July, amends Additional Provision 16.3 of Law 7/2024 and removes the deferral in processing refunds arising from the application of Transitional Provision 2 of the Personal Income Tax Law (mutualists) for the years 2019 to 2022 and earlier non-prescribed years.

By submitting the form available from 2 April 2025 on the AEAT website, taxpayers will have submitted the refund request for the 2019, 2020, 2021, 2022 and earlier non-prescribed periods, even when such request had been submitted before this amendment.

This enables AEAT to begin processing refunds immediately.

With effect from 1 January 2025, Law 5/2025, of 24 July (3rd Final Provision), introduces the sixty-first additional provision to Law 35/2006 of the IRPF to eliminate the tax burden for those receiving the new SMI (€16,576 annual from 2025) and to reduce it for earned income between the SMI and €18,276 annual.

Taxpayer requirements:

• Gross earned income from the effective provision of services corresponding to an employment or statutory relationship under €18,276 annual.
• That they have no other income (excluding exempt) other than from employment over €6,500 annual.

Amount of the deduction:

Limit: the deduction may not exceed the part of the sum of the state and regional gross tax liabilities that proportionally corresponds to the net earned income derived from the employment or statutory relationship computed for determining the taxable bases.

Its amount is deducted from the total net tax liability of the tax, once the deduction for international double taxation has been applied.

The deduction for energy efficiency works has been extended by one more year:

There are three modalities depending on the type of work:

• 20% on a maximum base of €5,000 for reducing heating and cooling demand by at least 7%.
• 40% on a maximum base of €7,500 for improving non-renewable primary energy consumption by at least 30%, or upgrading the energy rating to A or B.
• 60% on a maximum annual base of €5,000 (cumulative maximum €15,000) for energy refurbishment of predominantly residential buildings.

Thanks to the MOVES III programme (Royal Decree-Law 3/2025), the following two deductions are maintained until 31 December 2025:

• Purchase of new plug-in electric vehicles and fuel cell vehicles.
• Installation of battery charging points for said electric vehicles.

Royal Decree-Law 13/2025 extends to 2025 the deduction for income obtained on the island of La Palma (equivalent to the deduction for Ceuta and Melilla) for taxpayers with habitual and effective residence on that island. The withholding tax rate is reduced by 60 % for the affected employment income.

From 2025, both nurseries and authorised early childhood education centres are required to file the informative declaration of custody expenses (form 233), to be filed in January 2026 for the 2025 fiscal year.

New business deductions are included, linked to the programmes declared of exceptional public interest by Royal Decree-Law 8/2025, of 8 July.

In relation to the joint limits applicable to the deduction for investments in fixed assets made in the Canary Islands, the Supreme Court has established an interpretative criterion in Judgments 3486/2005, 744/2009 and 745/2009 (of 31 May, 29 and 15 January):

These limits only apply when deductions for investments in fixed assets in the Canary Islands from previous tax periods coincide with the deductions of the current tax period.

Royal Decree-Law 13/2025, of 25 November, amended Additional Provision 57 of the Personal Income Tax Law to extend the deduction of Art. 68.4 LIRPF (deduction for income obtained in Ceuta and Melilla) to 2025 for taxpayers with habitual and effective residence on the island of La Palma.

As a result, the withholding percentage is reduced by 60 % in the 2025 fiscal year when earned income benefits from the aforementioned deduction, both for Ceuta/Melilla and for La Palma.

For 2025, the above only applies to determine:

• The withholding or payment on account rate on earned income (general procedure of Art. 82 Personal Income Tax Regulations) paid from 27 November 2025, with regularisation of the rate in the first income paid from that date.
• Payer's option: to apply the above to the first earned income paid from the month of December, in which case the withholding rate on income paid previously will be determined without taking this new feature into account.
• The instalment payment rate corresponding to economic activities entitled to the deduction whose filing deadline had not yet started on 27 November 2025.