Extension of temporary tax and duty reductions for the year 2024
This 2024 the exclusionary limits and extends the deadline for waiver or revocation of modules:
- extends the tax benefits in personal income tax and corporate income tax for the improvement of energy efficiency and renewable energies;
- extends tax relief on food, electricity, gas and heating fuels,
- electricity, gas and heating fuels;
- extends the energy and banking levies and the solidarity tax on large fortunes;
- updates the maximum coefficients for municipal capital gains tax;
- and modifies the electronic filing of personal income tax, wealth tax and the tax on large fortunes.
Modules 2024
The module exclusion limits are extended for 2024, applying the planned increased limits. In this way, those who do not exceed the following turnover limits in 2023 will be able to continue in modules in 2024: for all economic activities, €250,000. And €125,000 when the recipient is a businessperson or professional.
A new deadline for waiving or revoking the objective assessment method for personal income tax and the simplified and special VAT regimes for agriculture, livestock and fishing is envisaged: until 31 January 2024.
Personal income tax deduction for energy efficiency improvement works in 2024
The temporary scope of application of the deduction foreseen for this purpose in the Personal Income Tax linked to works that promote energy refurbishment is extended for a further year, extending until 31 December 2024 for all measures aimed at refurbishments that help to achieve more sustainable energy consumption, whether in private homes or in blocks of flats. This aid will allow those who carry out these actions on their properties to deduct 20%, 40% or 60% of their income tax. The percentages depend on the type of home and the depth of the work carried out to achieve the objective of reducing consumption and obtaining the corresponding certificates.
Electronic Personal Income Tax Return
It is legally established that the obligation to file a tax return by electronic means may be established provided that the Tax Administration ensures personalised attention to taxpayers who require assistance to complete the return by such means.
On the other hand, the evaluation of the obligation to file personal income tax returns by electronic means. The results will be transferred to the Council for the Defence of Taxpayers to submit a report of conclusions and proposals in which the results achieved, the incidents that have occurred, the complaints and recommendations received are assessed and the actions to be taken in the next tax return campaign are proposed.
Electronic Wealth Tax Return
Taxpayers who may be obliged to self-assess Wealth Tax, the mention that the means of filing the tax return may be exclusively electronic in said Tax.
Prolongation of the freedom of depreciation in corporate taxation
The freedom of depreciation is extended for investments using energy from renewable sources, with such freedom of depreciation being applicable in the tax periods:
- To be started or completed in 2023, where the elements referred to in this paragraph are brought into operation in 2023.
- To be started or completed in 2024, where the elements referred to in this paragraph are brought into operation in 2024.
And provided that during the 24 months following the date of commencement of the tax period in which the items acquired become operational, the total average workforce of the entity is maintained in relation to the average workforce of the previous twelve months.
Prolongation of VAT rate cuts
Reduced rate of 5 % or 0 % on foodstuffs until 30 June 2024
1.The rate of 5 % VAT shall be applied to supplies, imports and intra-Community acquisitions of olive and seed oils and pasta products.
The rate of the equivalence surcharge applicable to these transactions shall be 0,62 %.
2.The rate of 0 % VAT shall apply to the supply, import and intra-Community acquisition of common bread, frozen common bread dough and frozen common bread intended exclusively for the manufacture of common bread; flour of bread-making quality; milk produced from any species of animal: natural, certified, pasteurised, concentrated, skimmed, sterilised, UHT, evaporated and powdered; cheeses; eggs; as well as fruits, vegetables, legumes, tubers and cereals, which have the status of natural products in accordance with the Food Code and the provisions issued for its development.
The rate of the equivalence surcharge applicable to these operations shall be 0 %.
Reduced rate of 10 % on electricity for the whole year 2024
– Holders of electricity supply contracts, whose contracted power (fixed power term) is less than or equal to 10 kW, regardless of the voltage level of the supply and the type of contract, when the arithmetic average price of the daily market corresponding to the last calendar month prior to the last day of the billing period has exceeded 45 €/MWh.
– Holders of electricity supply contracts who are recipients of the bono social de electricidad and are recognised as severely vulnerable or severely vulnerable and at risk of social exclusion.
Reduced rate of 10 % on gas until 31 March 2024
From 1 January 2024 and valid until 31 March 2024, a 10 % rate of Value Added Tax shall be applied to supplies, imports and intra-Community acquisitions of natural gas.
Reduced rate of 10 % on pellets, briquettes and firewood until 30 June 2024
From 1 January 2024 and valid until 30 June 2024, it provides for the application of the 10 % VAT rate to supplies, imports and intra-Community acquisitions of briquettes and pellets from biomass and wood for use as firewood.
Extension of tax rate reductions in the Special Tax on Electricity
From 1 January 2024 until 31 March 2024, the Special Tax on Electricity shall be levied at the rate of 2,5 %, and from 1 April 2024 until 30 June 2024, at the rate of 3,8 %.
The amounts resulting from the application of these tax rates may not be less than the following amounts:
a) EUR 0,5 per megawatt-hour (MWh), where the electricity supplied or consumed is used for industrial purposes, on vessels berthed in port which do not have the status of private pleasure craft or in rail transport;
b) EUR 1 per megawatt-hour (MWh) where the electricity supplied or consumed is used for other purposes.
Where the condition set out in the above points is not met, the amounts indicated therein shall be considered as tax rates and shall be applied to the total supply or consumption for the period expressed in megawatt-hours (MWh).
For these purposes, industrial uses are considered to be those carried out at high voltage or in industrial plants and installations and those carried out at low voltage for agricultural irrigation purposes.
Gradual Recovery of the Energy Production Value Tax
For the 2024 tax year, the taxable base for the tax on the value of electricity production will be made up of the total amount that the taxpayer is entitled to receive for the production and incorporation into the electricity system of electricity, measured in power plant busbars, for each installation, in the tax period, less half of the remuneration corresponding to the electricity incorporated into the system during the first calendar quarter, and less one quarter of the remuneration corresponding to the electricity incorporated into the system during the second calendar quarter.
Temporary solidarity tax on large fortunes
Taxable persons
The aim is to extend the minimum exemption of 700,000 euros to all taxpayers, regardless of whether or not they are resident in Spain.
Tax deferral
In addition, the application of the temporary solidarity tax on large fortunes is extended until the revision of wealth taxation in the context of the reform of the regional financing system takes place.
Filing the declaration electronically
Obligation to file tax returns electronically.
Extension of energy and banking levies
The extension for 2024 of the two temporary levies foreseen for the establishment of temporary energy levies and temporary levies on credit institutions and financial credit establishments. It also envisages the future review of both levies for their full integration into the tax system. Similarly, a possible agreement with the communities of the Basque Country and Navarre is also envisaged.
Tax on the Increase in the Value of Urban Land
The amounts of the maximum coefficients to be applied to determine the taxable base of the Tax on the Increase in the Value of Urban Land.
Generation period | Coefficient |
Less than 1 year | 0,15 |
5 years | 0,18 |
10 years | 0,12 |
15 years | 0,09 |
Equal to or more than 20 years | 0,40 |
The following maximum amounts are established for the coefficients to be applied to the value of the land at the time of accrual, according to the period of generation of the increase in value, with effect from 1 January 2024:
If you have any doubts about this subject, please do not hesitate to contact us, by telephone to Carles Monfort Codina or by e-mail to cmc@btsasociados.com, we will be delighted to help you.