Only in two of the last twenty years – in 2008, under the government of José Luis Rodríguez Zapatero (PSOE), and in 2015, under Mariano Rajoy (PP), which was actually a tax reform –, the Treasury has deflated the income tax (IRPF) rate, which means adjusting it to inflation to prevent paying more tax despite having the same or lower real income. And the last two times similar measures were taken was before the call for general elections, in March 2008, in which Zapatero was re-elected for a second term, and in December 2015, when Rajoy repeated in office. Between doing it and not doing it, there is an essential difference: from 2019 to 2024, it has meant additional revenue for the State of between 9,700 and 16,700 million, according to various studies. From the left-wing space, led by the PSOE, it is considered that this type of adjustment advocated by the PP and which applies to all incomes, especially benefits the highest ones. And, therefore, they advocate for more selective and direct measures for low or middle-income families, such as reductions and rebates on public transport and others.

The Spanish Tax Agency (AEAT) will focus its efforts this year on digital businesses, rentals, and the activity of... influencers. These are some of the guidelines included in the 2026 tax control plan published by the Official State Gazette (Official State Gazette) of this Thursday. One of the important elements for carrying out these actions is all the new financial information available to the Treasury, such as those related to the use of Bizum or cardsIn addition to the data provided by cross-border payment providers and e-commerce platforms, new financial reporting requirements have been added. This will allow for greater control over e-commerce activities and the concealment of payments and collections through so-called neobanks. (digital banks). Other activities that will warrant greater scrutiny by the Tax Agency include fraud by companies with high turnover and by individuals with "significant" assets. The plan anticipates increased oversight of the various business areas within the real estate sector, "in a context of market recovery after years of slowdown." One of the key aspects will be monitoring "the accurate valuation of properties in transfers, especially when related entities or corporate structures are involved."

Sometimes politicians surprise us, and not just in our country. This week's financial news comes from the Netherlands: capital gains—such as stock market profits—will be taxed at 36% even if they haven't been realized through closing the position. This measure represents a profound change from the traditional system, under which taxes are only paid when assets are sold. Even in Spain, for example, losses can be offset against future profits over a five-year period. The implementation of this new model could generate significant deviations in financial management and investor behavior.

An average of more than 500 complaints per day. This is the volume of grievances handled by the economic-administrative courts—bodies attached to the Ministry of Finance—an essential avenue for challenging tax assessments before resorting to the courts, according to regulations. It represents a veritable avalanche of work for these entities. However, in 2024—according to the latest available data—complaints decreased by 17.87% compared to the previous year, reaching 196,442. Conversely, the number of cases resolved, which reached 222,737, increased by 14.20%. The economic-administrative courts in Madrid lead the way in complaints, with more than 33,000; followed by those in Andalusia, with 31,000, and those in Catalonia, with 30,395—the three most populous autonomous communities.

The Spanish Ministry of Finance is investigating a possible cyberattack on its databases, which could have compromised the personal, banking, and tax data of approximately 47.3 million Spanish citizens. For now, the Ministry has stated that there is no indication that a hack has occurred, although its security team continues working to rule it out, according to sources within the department headed by María Jesús Montero. The cybersecurity firm Hackmanac has issued an alert via the social network X (formerly Twitter) about a possible cyberattack on the Ministry of Finance, which could have compromised the personal, banking, and tax data of approximately 47.3 million citizens.

Amid stalled negotiations regarding future income tax collection, the Catalan Tax Agency (ATC) will hire 152 temporary staff members to handle tax returns during the upcoming tax season, starting in May. This represents a 49% increase in such personnel compared to last year. In addition, 36 new offices will be opened throughout Catalonia dedicated to this task. Eight of these will be temporary platforms exclusively for tax return processing, located in Barcelona (three centers), Girona, Lleida, Tarragona, the Baix Llobregat area, and the Besòs area. This tax season, like last year's, is a trial run, as the ATC will assume responsibility for tax collection in the future, as stipulated in the agreement between the PSC and ERC parties for the investiture of Salvador Illa. Negotiations on this matter are ongoing. They are currently strandedThe Republicans are demanding the ability to collect 100% of the Personal Income Tax (IRPF) within two years, while the Socialists are resisting this and believe the timeframe should be longer. The Catalan Tax Agency's (ATC) participation in the 2025 tax return campaign, which was already strengthened last year, involves the announcement of 16 positions for tax management technicians and 136 positions for administrative staff, to be assigned to various locations in Catalonia. The tax management technician positions (subgroup A2, level 22) will be located in Barcelona, ​​Girona, Lleida, and Tarragona. Maximum territorial coverage

The ATC will provide the service in collaboration with the State Tax Administration Agency (AEAT), ensuring maximum territorial coverage, specialized technical advice, and the interconnection of computer systems between both organizations. The service will offer telephone support from May 6 to June 30 and in-person support from June 1 to 30. Another element in preparing the ATC to take on more work and a greater volume of resources was an agreement with the State Treasury to jointly manage the vehicle registration tax. This agreement concerns a tax that contributes approximately 140 million euros annually. It took almost a year to sign after it was announcedIf the Catalan Tax Agency (ATC) were to collect 100% of the Personal Income Tax (IRPF), it would go from managing approximately €5 billion annually (currently, between its own and transferred taxes) to over €30 billion annually. To apply for positions for the income tax campaign, applicants must hold the required qualifications to join the Catalan Government's technical corps of tax managers and demonstrate C1 level proficiency in Catalan or equivalent. Interested parties must submit form ATC/007/2026 before February 2, 2026, attaching the corresponding curriculum vitae. Regarding administrative positions (subgroup C1, level 14), service will be provided in person at various locations throughout the region. The qualifications for entry into the Catalan Government's administrative corps and C1 level Catalan accreditation are also required. In this call for applications, a total of 10 positions are reserved for people with legally recognized disabilities. Shortlisted candidates will have to pass a multiple-choice knowledge test, scheduled for February 27th in Barcelona, ​​and a personal interview, which will serve to assess their professional skills and provide further information on their curriculum vitae. Selected candidates will receive comprehensive pre-training during the month of April, jointly provided by the Catalan Tax Agency (ATC) and the Spanish Tax Agency (AEAT), which will form part of the contract period. The positions will be filled through secondment or temporary appointment for a three-and-a-half-month period, from March 30th to July 10th, 2026. The experience gained and the length of service rendered during this campaign may be considered as merits in future job offers from the Catalan Tax Agency.

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At yesterday's meeting between Vice President Montero and the finance ministers of all the autonomous communities, we heard yet another of those phrases that will go down in the anthology of what used to be called anti-Catalanism and is now more accurately described as Catalanophobia. The honor belongs to the finance minister of Andalusia, Carolina España:

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María Jesús Montero has issued a challenge to the autonomous communities under the common regime, and therefore to the PP, which governs in almost all of them: if they do not wish to adopt the new regional financing model—should it be approved—they can remain with the current system. This is not a new idea, as voluntary participation is already provided for in the law. In fact, in 1996, when the PP and CiU agreed on the financing model in place at the time, some socialist-governed communities did not join. However, de factoThis would mean forgoing the additional funds they would receive under the model agreed upon by the three parties: ERC, the Catalan government, and the Spanish government. In Catalonia's case, this amounts to an additional 4.7 billion euros. "Absolutely nothing will be imposed here," Montero stated at a press conference following the Fiscal and Financial Policy Council (CPFF), adding that participation in the regional debt forgiveness, which is yet to be voted on in Congress, is also voluntary.

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One of the great mysteries kept under lock and key by the Ministry of Finance is that of the adjusted population. It's the key tool for determining each autonomous community's share of funding, but calculating it becomes a real puzzle. People are assigned different values depending on their age, whether they live in a town or a city, whether they are unemployed, or whether they live on an island—among other factors. Some autonomous communities benefit more from the adjusted population, such as Extremadura, La Rioja, and Cantabria, while others... They would do much better if they used the actual population....like Catalonia. That's why every time a proposed funding model is presented, a flurry of figures ensues, depending on what's being compared. Below, we review the main figures before Wednesday's meeting between regional finance ministers and the Minister of Finance.

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María Jesús Montero has long been waging a crusade against Madrid's "tax dumping." The First Vice President and Minister of Finance has made no secret of her support for discouraging this practice, and this Friday, within the framework of the presentation of the new regional financing modelShe has brought it up again. "It's important to set limits and [approve] mechanisms to prevent tax evasion," she said.

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There are taxpayers who, even now, after the year in which they filed their 2024 income tax return (IRPF), have still not received the refund they requested. This is money they overpaid to the Tax Agency, on which the Agency does not pay interest. Although the Tax Agency has shortened refund processing times, which in some cases are completed in a matter of days, at the beginning of this year there are still 388,899 taxpayers who have not received their refunds, representing 2.6% of the total. Each year there is a similar proportion of outstanding returns, and these are the ones the Tax Agency scrutinizes most closely.

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One in five people in Spain prefers to pay in cash rather than using electronic means. That's low. In fact, it's the lowest percentage in Europe. This is according to [source missing]. a study by the consulting firm PwC Fresh out of the oven. And everything indicates that this trend can only grow, with the explosion in the use of Bizum and its future rollout on a European scale.

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There is one driving force preventing the Spanish government's ability to manage from grinding to a halt: tax revenue. Through November, tax collections have exceeded €300 billion for the first time. This unprecedented level, achieved just one month before the end of the fiscal year, suggests that 2025 will be another record-breaking year for revenue.

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It was a widespread demand. Small and medium-sized enterprises (SMEs) and the self-employed were calling for it, and it was also one of the points demanded by Junts in the Spanish government. Finally, the Verifactu electronic invoice verification system will have its mandatory implementation delayed by one year, moving to 2027 instead of January 1st for companies and July 1st for the self-employed.

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The last time Pedro Sánchez managed to pass a national budget was in 2022, during the previous legislature. It was the budget for 2023. Since then, despite the start of a new legislature, the Spanish government has failed to pass any new budgets and, in fact, is headed for the end of its term – Pedro Sánchez maintains that the legislature will last until 2027 – without achieving this. The underlying reason is not only that Congress rejected the deficit and debt targets for 2026 this Thursday, the necessary step before drafting a budget, but also that Junts has closed the door to negotiating a budget for next year. Given that the electoral climate will be a major factor in 2026 and 2027, unless early national elections are called, it is difficult to imagine that the context will be more favorable for budget negotiations then. The only "window of opportunity" that some members of the Spanish executive foresee is the return of Carles Puigdemont, a very open scenario that is in the hands of the courts.

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María Jesús Montero, First Vice President and Minister of Finance, plans to make a all in The first quarter of 2026. Pedro Sánchez's second-in-command has been grappling with three issues for some time: the cancellation of regional debt, the special financing model, and finally, the national budget. If her calculations are correct, all three will be on the table between February and March. This would mean that these three thorny issues would coincide. Despite the high level of political—and media—expectation, she is not worried. "It has to be done," sources at the Ministry of Finance summarize.

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The Spanish government will propose a national budget for 2026 – the 2023 budget remains in effect – with skyrocketing spending and revenue. Despite the difficulty of passing it in the Congress of Deputies after... Together they have broken off their relationship with the PSOEThe First Vice President and Minister of Finance, María Jesús Montero, intends to try to approve them and, for the moment, has already taken a step forward with the approval of the spending ceiling and the stability mechanism. "They will be expansionary and responsible budgets," Montero anticipated at a press conference this Tuesday. Specifically, the Council of Ministers has approved a spending ceiling (the maximum amount that all the State's public administrations can spend in a year) that is once again a record: 212,026 million euros without European funds. With the arrival of the final funds from this windfall approved in the wake of COVID-19 –which must be spent by 2026–, the spending ceiling jumps to 216,177 million. This spending cap is 8.5% higher than the 2025 limit (€195.353 billion), which never materialized due to a lack of political agreement and the snap election in Catalonia. "This spending cap bears the DNA of a progressive government," Montero stated. Following this increase in the spending cap, the Treasury projects skyrocketing tax revenues. Specifically, Montero anticipated that she estimates revenues exceeding €325 billion for 2025. "And in 2026 they will increase by 8.5%," she asserted. Part of this revenue growth is explained by the inflationary context (most organizations estimatean average inflation rate above 2% by 2025 and slightly below 2026). This will be noticeable, for example, in the revenue from personal income tax, which makes up the bulk of the resources entering the public coffers. However, the Treasury also links this to the strong performance of the Spanish economy, while cooling down the possibility of raising taxes. "The increase in resources will not require any action that necessitates a law [...], many tax categories have the capacity to grow," Montero stated.

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A windfall of millions for the autonomous communities under the common regime. The Ministry of Finance has informed regional governments that next year they will receive record resources from the financing system, amounting to up to €157.731 billion (7% more than in 2025) in the form of advance payments. This figure is slightly higher than the one announced in the summer. Of this money, Catalonia will receive a record €30.207 billion, 6.9% more than in 2025, as reported by the Ministry of Finance this Monday, following the Fiscal and Financial Policy Council (CPFF). It is worth remembering that advance payments are the resources that the State transfers in advance to the autonomous communities and municipalities, depending on the administrations' tax revenue forecasts. These funds represent the bulk of the resources available to the regions for preparing their budgets and covering basic services, and are updated annually according to economic growth forecasts, but above all, tax revenue projections, which have performed well in recent years. To this amount must be added the positive settlement for 2024: €13.506 billion. This means that the central government anticipated lower tax revenue for the regions that year, but this did not materialize. Thus, the Treasury will transfer a total of €170.3 billion. Deficit target of 0.1%

However, the Treasury is not making any changes to the deficit target for the autonomous communities in 2026. The department headed by María Jesús Montero (PSOE) has confirmed that they will have a deficit target of 0.1% of GDP in 2026, 2027, and 2028. "That means a deficit for all three years," Montero said at a press conference. For Catalonia, this represents approximately €1 billion in additional spending leeway during this period, according to calculations by the Catalan government. Along with the deficit target, Montero also announced the debt target for the autonomous communities (set at 20% of GDP for 2026), as well as the spending rule limit, which for next year will rise to 3.5% (currently at 3.5%). The Minister of Economy and Finance, Alícia Romero, welcomed the upward revision of the spending rule limit, as it is a key element of the new European fiscal rules, although the Valencian government will still not comply with it. The three elements (deficit target, debt, and spending rule) constitute the path to stability.

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Between January and February of next year. This is the timeframe set by the First Vice President and Minister of Finance, María Jesús Montero, to present the new regional financing model. For the first time, Montero has committed to a specific date, doing so after a Fiscal and Financial Policy Council (CPFF) meeting in which she outlined the key features of the future system. This model is still being negotiated with the Republican Left of Catalonia (ERC) and the Catalan government (Generalitat). This is, in fact, the main reason why Montero postponed the CPFF meeting scheduled for this Monday.

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The Independent Authority for Fiscal Responsibility (AIReF) has once again criticized the Spanish government for still not having presented a draft national budget for 2026. "Not presenting a budget prevents debate, and the lack of debate means that oversight [of the Spanish government] is impossible," criticized AIReF President Herrero, a close associate of Herrero. Herrero said that it is "crucial" to be able to carry out this oversight exercise to see if the executive's actions align with its promises, especially in fiscal terms. Despite the difficulties in approving new public accounts (the 2023 budget remains extended), especially after the fragile relationship with JuntsPedro Sánchez is determined to present a budget proposal. Before that, however, the government must establish a spending ceiling and a stability path with new deficit and debt targets. This step is expected to be taken in the coming days. All of this will also have to be presented to the autonomous communities at a Fiscal and Financial Policy Council (CPFF). In this regard, the Independent Authority for Fiscal Responsibility (AIReF) has once again raised the issue of applying different deficit targets depending on the region.

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