Today's BOE approved 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.

Among the new tax measures, the following stand out:

Food VAT reduction

The VAT reduction on basic foods is maintained, remaining at 0% in the case of milk, bread, flour, fruits, vegetables, legumes, cereals, cheeses or eggs; In addition, olive oil will also be taxed at 0%.
The VAT Law is modified to include olive oil among basic foods, so that it will be taxed subsequently and permanently, at the super-reduced rate (4%).

The VAT reductions on food will go through two phases until their normal taxes are recovered: From July 1 to September 30, rates will remain at 0% and 5%. From 1 October to 31 December, the 0% rate on basic foodstuffs will be set at 2% and the 5% rate at 7.5%.

Incentives to promote electric mobility

In order to promote electric mobility, free depreciation is established for new FCV, FCHV, BEV, REEV or PHEV vehicles (Annex II of the General Vehicle Regulations) and for new charging infrastructures, both for corporate tax payers and for personal income tax payers who carry out economic activities to which vehicles and charging facilities are assigned.

Increase in the minimum exemption from personal income tax

The minimum exemption from personal income tax goes from 15,000 to 15,876 euros per year.

Aid to La Palma

Tax benefits already adopted for 2023 are extended until 2024.