Spain

Individual - Significant developments

Last reviewed - 16 July 2020

Over the past 12 months, the following significant reforms have been made to Spanish law on direct taxation of individuals:

  • On 22 April 2020, Royal Decree Law (RDL) 15/2020, of 21 April 2020, was published in the Official State Gazette. The main measures contained in this RDL that affect the taxation of individuals are the possibility to waive the objective assessment method in personal income tax (PIT) and the simplified value-added tax (VAT) system without being mandatorily linked to this method for three years.
  • On 1 April 2020, RDL 11/2020, of 31 March 2020, was published in the Official State Gazette. The main measure contained in this RDL that affects the taxation of individuals is the introduction of a stamp duty exemption in certain novations of credits and mortgage loans related to the acquisition of the habitual dwelling due to the COVID-19 economic impact.
  • On 5 February 2020, RDL 3/2020, of 5 February 2020, was published in the Official State Gazette. Under this RDL, amounts received from pension plans in cases of serious illness or long-term unemployment, or corresponding to contributions made at least ten years previously, receive the same tax treatment as pension plan benefits.
  • On 28 December 2019, RDL 18/2019, of 27 December 2019, which passed certain tax, rateable value, and social security measures, was published in the Official State Gazette. The main measure contained in this regulation that affects individual taxes is the maintenance of wealth tax in 2020, extending the temporary scope of application of what was intended to be an exceptional measure for another year. This is the case in spite of the powers that autonomous communities have regarding this tax.
  • On 21 September 2019, RDL 11/2019, of 20 September 2019, was published in the Official State Gazette. Under this RDL, exceptional aid received for personal and material injury caused by storms, fires, and other natural disasters in certain areas of the Spanish territory is exempt from PIT.