2025 Income Tax Updates: Key Changes for the 2026 Filing Season

The campaign for the 2025 Income Tax Return, to be filed during 2026, comes with several key tax changes that taxpayers should review before submitting their draft return.

Although this is not a major reform of the Spanish Personal Income Tax (IRPF), there are relevant updates that may affect the final outcome of the tax return, especially for:

• Employees with low income.
• Taxpayers with high savings income.
• Individuals who invested in energy‑efficiency improvements or electric vehicles.
• Self‑employed workers who need to regularise RETA contributions or are taxed under modules.

Below, we review the main updates included in the 2025 Income Tax Return.

New deduction for low‑income employees

One of the main changes this year is the new deduction for employment income, aimed at taxpayers with lower earnings.

Requirements

It applies to taxpayers who meet the following conditions:

• They have employment income below €18,276 per year.
• They do not receive other income above €6,500 per year (excluding exempt income).

Deduction

• The deduction may reach up to €340 for those earning salaries close to the minimum wage.
• It decreases progressively as income increases, until it phases out at the established threshold.

This measure aims to reduce the tax burden on lower wages and may result in a larger refund or a lower amount payable in the final return.

Energy‑efficiency incentives remain in place

Another major aspect of the 2025 tax campaign is the extension of several tax incentives related to the energy transition.

Deductions for energy‑efficient home improvements

The period to apply deductions for renovations aimed at improving household energy efficiency has been extended. Eligible works include:

• Reducing energy consumption.
• Improving thermal insulation.
• Installing more efficient energy systems.

Depending on the type of renovation, deductions may range between 20% and 60% of the expenses.

Some of these deductions may be applied to investments made until 31 December 2026, and in the case of residential buildings, even until 2027.

Deduction for electric vehicles and charging stations

The deduction continues to apply to:

• The purchase of plug‑in hybrid or hydrogen fuel‑cell vehicles.
• The installation of electric charging points.

This deduction may reach 15% of the acquisition or installation cost, within legally established limits.

Removal of the obligation to declare unemployment benefits

One of the most notable changes confirmed by law is the elimination of the obligation to declare unemployment benefits.

• Beneficiaries of unemployment benefits will no longer be required to file an IRPF tax return if these benefits are their only source of income and remain below the general taxation thresholds.
• This measure affects approximately 2.5 million taxpayers and aims to reduce administrative burdens and protect vulnerable groups.

Recommendations

Even if there is no obligation to file, voluntary filing may be beneficial if there are withholdings to be refunded or if the taxpayer is entitled to deductions such as maternity, large families or charitable donations.

Increased tax control over cryptocurrencies

All cryptocurrency transactions (sales, exchanges, swaps) must be declared as capital gains or losses within the savings taxable base.

The Tax Agency is increasing its scrutiny of cryptoassets, making it essential to maintain detailed records of all transactions.

The Spanish Tax Agency will reinforce anti‑fraud measures in large companies, high‑wealth individuals, and the real estate and construction sectors.

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2025 Income Tax campaign calendar

The tax campaign follows the usual schedule set by the Spanish Tax Agency. These are the main key dates:

• 8 April 2026: online filing begins.
• 6 May 2026: telephone assistance begins.
• 1 June 2026: in‑person assistance begins.
• 30 June 2026: end of the tax campaign.

Planning ahead is especially important for:

• Taxpayers with multiple payers.
• Those who have made deductible investments.
• Individuals with significant savings income.
• Those with more complex tax situations.

If you operate in the Basque tax territories, especially Bizkaia, keep in mind that specific regulations apply. You can review the latest updates to the Income Tax Return in Bizkaia in this article.

Frequently asked questions about the 2025 Income Tax Return

Who can benefit from the new low‑income deduction?

Taxpayers with employment income below €18,276 per year and with no additional income exceeding €6,500 may apply a deduction of up to €340.

Are energy‑efficiency deductions still available?

Yes. Energy‑efficiency deductions have been extended, allowing taxpayers to apply them to investments made until late 2026 (and until 2027 in some cases).

Is it advisable to review the tax draft before submitting it?

Yes. Although the draft is prepared by the Tax Agency, it does not always include all personal circumstances or deductions. Reviewing it helps avoid mistakes or missing tax benefits.

What if I have cryptocurrencies?

Crypto transactions that generate capital gains or losses must be declared. Given the increasing control over cryptoassets, keeping a precise and organised record is essential.

Additional information for foreign residents and non‑residents in Spain

If you are a foreigner living in Spain or earning income here, it is essential to understand when you are required to file the Income Tax Return (IRPF) and the Wealth Tax Return (IP):

When must foreign residents file?

• You are considered a tax resident if you live in Spain for more than 183 days a year, have your main economic interests in Spain, or if your spouse or minor children live here.
• If you are a tax resident, you must file the IRPF and declare your worldwide income.
• You must also file Wealth Tax (IP) if your total worldwide assets exceed the legal thresholds.

When must foreign non‑residents file?

• If you are a non‑resident, you only pay tax on income obtained in Spain through the Non‑Resident Income Tax (IRNR).
• You may need to file if you:
  • earn rental income from a property in Spain,
  • own a property (even if not rented) — imputed income applies,
  • sell real estate or assets in Spain, generating capital gains.
• Non‑residents must also declare Wealth Tax on assets located in Spain if applicable.

Filing deadlines for foreigners

• Residents: file IRPF from April to June each year.
• Non‑residents: IRNR is filed annually or quarterly, depending on the type of income.

If you are an expatriate, property owner or relocating to Spain, our team can advise you to ensure full compliance and avoid unnecessary tax burdens.

How Adlanter can help you

The Income Tax Return may seem simple, but in many cases, regional deductions, personal circumstances or investment‑related incentives can significantly impact the final outcome.

Professional advice helps you:

• Review your tax draft correctly.
• Identify applicable deductions.
• Optimise your tax result within the legal framework.
• Avoid errors or issues with the Tax Agency.

At Adlanter, our tax advisory specialists can help you manage your Income Tax Return safely and efficiently, analysing your individual situation and ensuring full compliance with your tax obligations. Contact our team without commitment.