In today's BOE, Royal Decree-Law 4/2024, of June 26, was approved, which extends certain measures to address the economic and social consequences derived 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 should be highlighted:

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, the 0% and 5% rates will be maintained. From October 1 until December 31, the 0% rate on basic foods will be 2% and the 5% rate will be 7.5%.

Incentives to promote electric mobility

To promote electric mobility, freedom of depreciation is established in new FCV, FCHV, BEV, REEV or PHEV vehicles (Annex II of the General Vehicle Regulations) and in new charging infrastructures, both for taxpayers of Corporate Tax and for Personal income tax taxpayers who carry out economic activities that affect vehicles and charging facilities.

Raising the minimum income tax exemption

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

Aid to La Palma

The tax benefits that had already been adopted for 2023 are extended to 2024.