3.1 Exclusive quantitative limits

The following quantitative limits constitute causes for exclusion from the objective estimation method:

Note: Royal Decree-Law 16/2025, of December 23 (BOEof December 24), has modified, with effect from January 1, 2025, the thirty-second transitional provision of the Law of IRPFABBR, to extend to the tax periods 2025 and 2026 the application of the same exclusionary quantitative limits set for the fiscal years 2016 to 2024: both those relating to the volume of gross income in the immediately preceding year derived from the exercise of economic activities (250,000 euros for all economic activities, except for agricultural, livestock and forestry activities and 125,000 euros for operations for which there is an obligation to issue an invoice when the recipient is a businessman) and to the volume of purchases of goods and services (250,000 euros, excluding the acquisition of fixed assets, for all activities in objective estimation - also including agricultural, livestock and forestry activities).

A. To have achieved in the previous year (2024) a volume of income exceeding 250,000 euros per year, for all of the agricultural, livestock and forestry activities carried out by the taxpayer

Regulations: Art. 32.2 a) Regulation PIT. See also art. 3.1 b) Order HAC/1347/2024, of November 28 (BOE November 30th)

When the activity had been started in the immediately preceding year, the volume of income will increase to the year.

Note: From 1 January 2025, the compensation of the special regime for agriculture, livestock and fishing of the Value Added Tax is eliminated in the calculation of the exclusionary magnitude based on the volume of income for the set of agricultural, forestry and livestock activities. Therefore, the compensation under the special regime for agriculture, livestock and fishing of the Value Added Tax will not be counted among the taxpayer's income for the 2024 tax period, for the purposes of applying the objective estimation method in the 2025 tax period, this being a novelty with respect to the orders by which the objective estimation method of the Personal Income Tax and the simplified special regime of the VAT were developed for previous years.

To determine these limits, the following operations will be computed:

Those that must be recorded in the sales or income record book provided for in article 68.7 of the Personal Income Tax Regulations.
Those that must be recorded in the record book provided for in article 40.1 (record book of invoices received) of the Regulations of the VAT, approved by Royal Decree 1624/1992, of December 29 (BOE of December 31).

New in 2025: From 1 January 2025, the activity of “mussel production in rafts” will be included in Annex I instead of Annex II, so the holders of this activity must apply the limit provided for in letter b) of article 3.1 of the aforementioned Order HAC/1347/2024, for the set of agricultural, livestock and forestry activities.

B. To have exceeded in the previous year (2024) the volume of purchases of goods and services for all economic activities carried out by the taxpayer the amount of 250,000 euros annually, excluding acquisitions of fixed assets

Regulations: Thirty-second Transitional Provision of the Law PIT and art. 32.2 b) RegulationPIT

In the case of subcontracted works or services, the amount thereof will be taken into account for the calculation of this limit.

When an activity had been started in the immediately preceding year, the volume of purchases will increase yearly.

Rules for determining the volume of gross returns and purchases:

In order to determine the volume of gross income and the volume of purchases of goods and services mentioned above, not only the operations corresponding to the economic activities carried out by the taxpayer must be taken into account, but also those corresponding to those carried out by the spouse, descendants and ascendants, as well as by entities under the income attribution regime in which any of the above participate, in which the following circumstances occur:

That economic activities are identical or similar.
For these purposes, economic activities classified in the same group in the Tax on Economic Activities will be deemed to be identical or similar.
That there exists a common direction for such activities, sharing personal or material resources.

In the case of transactions carried out with related entities , under the terms set forth in article 18 of the LIS , they must be valued imperatively at their normal market value, understood as the one that would have been agreed upon by independent persons or entities under conditions of free competition.

Regarding the LIS see Law 27/2014, of November 27, on Corporate Tax.

In these cases, the taxpayer must comply with the documentation obligations for said operations under the terms and conditions established in articles 13 to 16, Chapter V ("Information and documentation on related entities and operations") of Title I of the Corporate Tax Regulations, approved by Royal Decree 634/2015, of July 10 ( BOE of July 11).