New €340 Tax Deduction For Low-income Workers In Spain

Relief for those earning nether €18,276 arsenic BOE publishes caller IRPF measure

A caller individual income taxation (IRPF) conclusion has officially travel into unit successful Spain, offering up to €340 successful yearly alleviation for low-income workers. The measurement was published successful nan Official State Gazette (BOE) connected July 25, 2025, nether Law 5/2025, and applies retroactively from January 1, 2025.

The extremity is to easiness nan taxation load for those connected minimum costs (Salario Mínimo Interprofesional (SMI)) and akin incomes during a clip of wide economical pressure.

Who qualifies for nan €340 conclusion successful Spain?

The measurement modifies Law 35/2006 connected Personal Income Tax, introducing a caller further conclusion for qualifying workers. The charismatic matter specifies that:

‘Taxpayers pinch income from employment of €18,276 aliases little per year, who besides gain nary much than €6,500 from different sources, will beryllium eligible’ (BOE-A-2025-15424).

The afloat conclusion magnitude of €340 applies to those earning up to €16,576 per year. For incomes betwixt €16,576 and €18,276, it gradually reduces utilizing this formula:

‘€340 minus 0.2 times nan quality betwixt full earned income and €16,576.’

Importantly, nan deduction:

• Does not switch immoderate existing IRPF reliefs, specified arsenic those successful Article 80 of nan aforesaid law.
• Cannot transcend nan full magnitude of taxation owed (national and regional) connected earned income.
• Applies automatically, but only aft each different deductions person been made.

This caller conclusion could beryllium a invited alleviation for Spain’s lowest earners, particularly arsenic cost-of-living pressures proceed to mount.

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