Royal Decree-Law 8/2023, of December 27, was published in the Official State Gazette of December 28, adopting measures to address the economic and social consequences arising from the conflicts in Ukraine and the Middle East, as well as to alleviate the effects of the drought.

Among the fiscal measures of this Royal Decree-Law, the following stand out:

• From January 1 to December 31, 2024, the reduced rate of 10% VAT will be applied to all components of the electricity delivery bill, instead of the 5% rate applicable until December 31, 2023.

• From January 1 to March 31, 2024, the reduced rate of 10% VAT will be applied to natural gas deliveries, instead of the 5% rate applicable until December 31, 2023. The 10% rate will also be applicable to deliveries of pellets, briquettes and firewood, ecological substitutes for natural gas from biomass and intended for heating systems, although this reduced rate will remain in effect until 30 June 2024.

• 0% VAT is maintained on those foods considered essential: bread, flour, milk, eggs, fruits, legumes or vegetables. Other foods such as pasta and olive or seed oils maintain the VAT rate of 5%.

• The Temporary Solidarity Tax on Large Fortunes, the Temporary Energy Tax and the Temporary Tax on Credit Institutions and Financial Credit Institutions are extended until 2024.

• The Special Tax on Electricity is increased from 0.5% in force until December 31, 2023, to 2.5% during the first quarter of 2024 and to 3.8% during the second quarter of 2024.

• In the Personal Income Tax, the deductions of 20, 40 and 60% for works to improve the energy efficiency of homes are extended until 2024.