Tax on the value of electricity production

It is a direct and real environmental tax that taxes the production and incorporation activities into the electrical system of electric energy, measured in power station bars, through the facilities referred to in the Electric Sector Law.

The tax is applied throughout Spanish territory, without prejudice to the special tax regimes applicable in the historic territories of the Basque Company and the Community of Navarre, respectively.

The taxable event is constituted by the production and incorporation of electricity, measured in power station bars, into the electrical energy system (including the peninsular electrical system and the insular and extra-peninsular territories).

The production measured in the central busbars corresponds to the electricity measured in the alternator terminals minus the auxiliary consumption in generation and the losses up to the grid connection point.

Taxpayers are natural or legal persons and entities referred to in article 35.4 of the General Tax Law that carry out the activities that constitute the taxable event. This includes both ordinary electricity production facilities and electricity production facilities using renewable, cogeneration or waste technology.

As a general rule, the tax period coincides with the calendar year and the tax is due on December 31.

In the event of cessation of the exercise of the activity, the tax period ends on the day on which said cessation has occurred and the tax is accrued on the day on which the cessation has occurred.

The full rate is the amount resulting from applying the tax rate to the tax base.

The taxable base for the tax period is made up of the total amount that the taxpayer is to receive for the production and incorporation of electricity, measured in power station bars, into the electric power system. When calculating the total amount, the remuneration provided for in all economic regimes derived from the provisions of the Electricity Sector Law and those provided for in the specific economic regime must be considered, in the case of activities of production and incorporation of electric energy into the electrical system in the insular and extra-peninsular territories. The tax base will be determined for each facility in which the activities of production and incorporation of electric energy into the electrical system are carried out.

Binding Consultation DGT V1641-13

The tax rate is 7 percent.

You must use Form 583 to self-assess the tax and to make fractional payments. If you cease your activity before October 31, you must use Form 588 to file your tax return. Both self-assessment forms are available on the Tax Agency's website.

The presentation can be made by you as a declarant, by a third party acting on your behalf and who is in possession of an electronic signature certificate, or through social collaboration.

As a general rule, you must make four split payments and submit the annual self-assessment:

• The first installment payment must be made between the 1st and 20th of May. Its amount results from applying the tax rate to the value of the production of electrical energy corresponding to the first three months of the calendar year.
• The second split payment must be made between the 1st and 20th of September. The amount is the result of applying the tax rate to the value of the production of electrical energy corresponding to the first six months of the calendar year, minus the amount of the fractional payment previously made.
• The third installment payment must be made between the 1st and 20th of November. The amount is obtained by applying the tax rate to the value of the production of electrical energy corresponding to the first nine months of the calendar year, less the amount of the fractional payments previously made.
• The fourth installment payment must be made between the 1st and 20th of February of the following year. Its amount results from applying the tax rate to the value of the production of electrical energy corresponding to the calendar year, less the amount of the fractional payments previously made.
• The annual self-assessment must be completed between the 1st and 30th of November of the following year. Its amount results from applying the tax rate to the value of the production of electrical energy corresponding to the calendar year, less the amount of the fractional payments previously made.

If the value of your electricity production, including all installations, did not exceed 500,000 euros in the previous calendar year, you must make a single split payment and submit the annual self-assessment:

• The single split payment must be made between the 1st and 20th of November. Its amount results from applying the tax rate to the value of the production of electrical energy corresponding to the first nine months of the calendar year.
• The annual self-assessment must be completed between the 1st and 30th of November of the following year. Its amount results from applying the tax rate to the value of the production of electrical energy corresponding to the calendar year, minus the amount of the fractional payment previously made.

For these purposes, the value of production is the total amount to be received for the production and incorporation of electrical energy into the electrical system for each installation and period. If the total amount is not known at the time of making the instalment payments, you must set it provisionally based on the last provisional settlement made by the system operator and, where applicable, by the National Commission of Markets and Competition, prior to the start of the period for making the corresponding payment.

If the activity carried out had a duration of less than a year, to determine the production value of the previous calendar year, the production value must be raised to the year.

If you started your business after 1 January, you must make a split payment for the current tax period if the value of your production, calculated from the start of the tax period, exceeds 500,000 euros, including all installations. If applicable, you must make the split payments within the settlement period corresponding to the quarter in which the aforementioned amount is exceeded.

Yes. Those who pay amounts to taxpayers in relation to their activity of producing and incorporating electric energy into the electrical system are required to submit an annual summary declaration of operations with taxpayers in which they declare the aforementioned amounts paid.

The annual information declaration (form 591) must be submitted electronically through the Tax Agency website during the first twenty calendar days of the month of December following the calendar year to which the data correspond.

The amount of the installment payment is calculated by applying the tax rate of 7% on90 percentthat the taxpayer is entitled to receive for the production and incorporation into the electrical system of electrical energy (value of production) in the first calendar quarter of 2026.

The full fee or amount to be paid will be the result of applying 7 percent to the value of the electricity production of the second quarter, deducting the amount of the first installment payment.

The value of electricity production for the second quarter is 90 percent of the amount of remuneration corresponding to the electricity incorporated in the first quarter that has been notified by September 1, 2026, the start date of the second installment payment.

The payments corresponding to the electricity incorporated in the second quarter are not included in the taxable base of the tax.

The full fee or amount to be paid will be the result of applying 7 percent to the value of the electricity production of the third quarter, deducting the amounts of the first and second installment payment.

The value of electricity production for the third quarter is 90 percent of the amount of remuneration corresponding to the electricity incorporated in the first quarter that has been notified by November 1, 2026, the start date of the third installment payment. To this must be added the amount of the remuneration corresponding to the electricity incorporated in the third quarter that has been notified by November 1, 2026, the start date of the third installment payment.

The payments corresponding to the electricity incorporated in the second quarter are not included in the taxable base of the tax.

The full fee or amount to be paid will be the result of applying 7 percent to the value of the electricity production of the fourth quarter, deducting the amounts of the first, second and third installment payment.

The value of electricity production for the fourth quarter is 90 percent of the amount of remuneration corresponding to the electricity incorporated in the first quarter that has been notified by February 1, 2027, the start date of the third installment payment. To this must be added the amount of the remuneration corresponding to the electricity incorporated in the third and fourth quarters that have been notified by February 1, 2027, the start date of the third installment payment.

The payments corresponding to the electricity incorporated in the second quarter are not included in the taxable base of the tax.

The taxable base for 2026 is calculated by applying the tax rate of 7% to the amount that the taxpayer is entitled to receive for the production and incorporation into the electricity system of electrical energy (value of production) in the tax period of 2026,reduced by 10 percent of the amount that the taxpayer is entitled to receive for the production and incorporation into the electricity system of electrical energy (value of production) in the first calendar quarter of 2026 and by 100 percent of the amount that the taxpayer is entitled to receive for the production and incorporation into the electricity system of electrical energy (value of production) in the second calendar quarter of 2026.