Overview

Total Tax Net Revenue reached the level of €325 billion in 2025, an increase of 10.4% compared to 2024.

The revenue growth in 2025 is explained by the increase of the tax bases and the positive impact of regulatory and management measures. The aggregate tax base of the main taxes enlarged by 7% in 2025, below the previous year (8.2%) due to the slowdown in income-related bases, intensified by the build-up in 2024 of large increases in income from movable capital and from economic activities, as well as a sharp increase in the consolidated Corporate Income Tax base driven by regulatory changes. Altogether these bases grew by 8%, down from 11.2% in 2024. On the other hand, expenditure-related bases rebounded, increasing by 5.4% compared to 4% the previous year. For its part, the positive impact of regulatory and management changes is estimated at €7.82 billion, which lead to in 2.7 points of revenue growth. The overall effect includes a negative impact of €2.98 billion from extraordinary receipts and refunds paid (if added together, revenue would grow by 11.4%). The rest of the measures, which resulted in a net additional revenue of €10.8 billion, were mainly the result of the measures in the Corporate Income Tax, the full return to normality regarding VAT (the recovery of rates on energy products and food staples) and taxes on electricity, new taxes (Tax on the Interest and Charges Margin of certain Financial Entities and Tax on Liquids for Electronic Cigarettes) and the increase in the rate in the Tobacco Excise Duty.

Economic activity showed the same pattern of moderation as the tax bases. The volume index of GDP, which measures real growth, increased by 2.8% in 2025, seven tenths less than in 2024. Year-on-year rates gradually slowed, from 3.7% in the last quarter of 2024 to 2.7% on the closing of the year. Fiscal indicators (daily domestic sales, like-for-like basis monthly large corporation’s sales and quarterly sales of Large Corporations and corporate SMEs) also showed signs of moderation in the middle of the year, although an improvement was seen in the last months and, overall, the rates were higher than those recorded in 2024. In nominal terms the slowdown was similar to that underwent by real activity. The result was a GDP growth at current prices of 5.8% in 2025 (6.4% in 2024). Domestic demand, which is a variable more related to income than nominal GDP, also moderated its pace compared to 2024, albeit to a lesser extent than GDP (6.1% in 2025 compared with the previous 6.4%).

The 10.4% growth in revenues in 2025 is due to an 11.4% increase in direct taxes and an 8.9% in indirect taxes, fees and other revenues as a whole. Personal Income Tax revenues grew by 10.1% in 2025. Household income is estimated to have grown by 7.2%, an increase that, together with the upsurge in the effective tax rate, explains the noteworthy escalation in the tax, even after the negative impact in 2025 of the refunds to mutual fund holders (€2.7 billion were refunded, almost €2.2 billion more than in 2024). The elements that contributed the most to revenue growth were withholdings on earned income and the outcome of the annual return. Corporate Income Tax revenues grew by 8.1%. The evolution of the tax was shaped by the performance of the instalment payments, linked to the profits generated in the year, which grew by 8.1%, above the profits of Large Corporations and groups that did so by 6.1%. The gross outcome of the annual return (for the fiscal year 2024) also saw a high growth, of 16.9%, although in this case partly due to the positive impacts of regulatory measures, especially in groups. With regard to indirect taxes, VAT revenue grew by 9.9%. It is estimated that final taxable expenditure grew by 6.1%. Moreover, the average rate also increased (3.7%) because of the return to standard rates of energy and basic food staples. Revenue from Excise Duties grew by 4.3%. Here also there is a positive impact of the regulatory measures; without them, would merely have grown by 0.6%.