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New regulations for 2025

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Main tax changes introduced by Royal Decree-Law 13/2025, of November 25, which adopts urgent complementary measures for the economic and social recovery of the island of La Palma after the damage caused by volcanic eruptions

PERSONAL INCOME TAX

With effects from the November 27, 2025 The following modifications are introduced in Law 35/2006, of November 28, of PIT (LIRPF).

Deduction for habitual and effective residence on the island of La Palma

The fifty-seventh Additional Provision is amended by article 2. of Royal Decree-Law 13/2025 of November 25.

The application of a deduction analogous to the deduction for obtaining income in Ceuta and Melilla is extended to taxpayers with habitual and effective residence on the island of La Palma to the 2025 tax period, so that:

  1. In the tax periods 2022, 2023, 2024 and 2025 the deduction provided for in number 1 of section 4 of article 68 of the LIRPF It will be applicable, under the same terms and conditions, to taxpayers with habitual and effective residence on the island of La Palma, it being understood, for these purposes, that the references made to Ceuta and Melilla in said article, in article 101 of the LIRPF and in their respective regulatory development, they are to the island of La Palma.

  2. In the tax periods 2024 and 2025, the provisions of paragraph 1 above shall only be applicable to determine:

    • The withholding tax rate and advance payment to be applied to the income to which the aforementioned deduction applies, which would have been paid in 2024 from the entry into force of Royal Decree-Law 4/2024, of June 26, which extends certain measures to address the economic and social consequences arising from the conflicts in Ukraine and the Middle East and adopts urgent measures in fiscal, energy and social matters, or in 2025, from the entry into force of Royal Decree-Law 13/2025, of November 25, which adopts urgent complementary measures for the economic and social recovery of the island of La Palma after the damage caused by the volcanic eruptions.

    • The type of installment payment corresponding to economic activities entitled to it whose filing period had not started at the time of entry into force of Royal Decree-Law 4/2024, of June 26, or Royal Decree-Law 13/2025, of November 25, depending on whether the installment payment corresponds to the tax period 2024 or 2025, respectively.

    In particular, to calculate the withholding tax rate applicable to employment income to which the general withholding procedure referred to in Article 82 of the Tax Regulations applies, which are paid or credited in 2024 and 2025 from those dates, respectively, the provisions of paragraph 1 above will be taken into account, adjusting, if appropriate, the withholding tax rate or payment on account in the first employment income that is paid or credited in each year from those dates.

    Notwithstanding the provisions of the preceding paragraph, it may be carried out, at the option of the payer, in the first employment income that is paid or credited in 2024 from the month following the entry into force of Royal Decree-Law 4/2024, of June 26, or in 2025 from the month following the entry into force of Royal Decree-Law 13/2025, of November 25, in which case the rate of withholding or payment on account to be made on the employment income paid in each of these years prior to these dates will be determined without taking into consideration the provisions of paragraph 1 above.

Real Decreto-ley 13/2025, de 25 de noviembre,

por el que se adoptan medidas complementarias urgentes para la recuperación económica y social de la isla de La Palma tras los daños ocasionados por las erupciones volcánicas.