Tax measures to combat the energy crisis resulting from the armed conflict in the Middle East: Reduction of the tax rate of the Special Tax on Electricity

In order to address the most immediate consequences of the conflict in the Middle East and mitigate the effects of rising electricity prices, Article 40 of Royal Decree-Law 7/2026, of March 20, approving the Comprehensive Response Plan to the Middle East Crisis, established, on an exceptional and temporary basis, a reduction in the tax rate of the Special Tax on Electricity provided for in section 1 of Article 99 of Law 38/1992, of December 28, on Special Taxes, from 5.11269632 percent to 0.5 percent, for taxable events occurring between March 22 and June 30, 2026 (both inclusive).

Because these are exceptional measures, this reduction during the month of June 2026 was subject to the evolution of the electricity consumer price index.

Since this circumstance did not occur, the reduced rate of the Special Tax on Electricity has not been applied to the accruals produced from June 1, 2026 onwards, and the rate of 5.11269632 percent is applicable to them from that date.

Additionally, section a) of article 42 of Royal Decree-Law 7/2026 reduced the VAT tax rate applicable to certain deliveries, imports and intra-community acquisitions of electricity from 21 percent to 10 percent.

Considering it necessary to maintain on a temporary basis certain measures included in Royal Decree-Law 7/2026, of March 20, including those relating to the Special Tax on Electricity, articulating their progressive withdrawal as the stabilization of energy markets is consolidated and the risks associated with the current geopolitical situation decrease, Royal Decree-Law 18/2026, of June 29, has been approved, adopting certain measures within the framework of the Comprehensive Response Plan to the Crisis in the Middle East.

Articles 12 and 13 of the aforementioned Royal Decree-Law 18/2026, of June 29, establish that the tax rate of the Special Tax on Electricity provided for in section 1 of article 99 of Law 38/1992, of December 28, on Special Taxes, may be reduced in the months of August and September 2026 from 5.11269632 percent to 0.5 percent, this reduction being subject to the CPI of electricity in the months of June and July 2026, exceeding by more than 15% respectively the CPI of the same months of the previous year.

Since this circumstance did not occur, the reduced rate of the Special Tax on Electricity does not apply to the accruals produced during the months of August and September, and therefore the rate of 5.11269632 percent is applicable.