Spain has introduced a new temporary energy tax under Royal Decree-Law 10/2024, affecting major energy companies throughout 2025. This measure, classified as a non-tax public patrimonial benefit, is aimed at increasing state revenues from large energy operators while promoting strategic investments in the sector.
The tax comes at a time when governments across Europe are taking extraordinary fiscal measures in response to the energy market’s volatility and rising corporate profits. Here’s a complete breakdown of how it works, who needs to pay, and what companies can do to reduce their tax burden.
Who Has to Pay?
This tax is not for everyone—it specifically targets main operators in Spain’s energy sector. While the decree doesn’t list exact companies, the criteria suggest that it applies to large corporations with a dominant role in electricity, gas, or petroleum markets.
These energy giants have benefited from high global energy prices, and this new levy aims to redirect a portion of those gains toward the public budget and future investments.
How Much & When to Pay?
Payment Schedule:
- Advance Payment (50%) → Due between June 1 – June 20, 2025
- Final Payment → Due between September 1 – September 20, 2025
Unlike a traditional corporate tax, this levy is classified as a public patrimonial benefit, which means it is not based on profits but rather on a fixed obligation tied to a company’s market role.
Can Companies Reduce the Tax?
Yes! Companies can lower their tax obligation by allocating funds to a special reserve for strategic investments. However, to qualify:
- The reserve must be “unavailable,” meaning it cannot be used freely.
- The funds must be dedicated to strategic projects that meet the government’s criteria.
- Specific regulations will clarify what qualifies as a strategic investment—this may include renewable energy projects, infrastructure upgrades, or innovation initiatives.
This tax reduction mechanism encourages reinvestment in Spain’s energy sector, aligning with the government’s push for a greener, more resilient economy.
Why Is Spain Introducing This Tax?
Spain, like many European nations, has been dealing with:
🔹 High energy prices following global market disruptions.
🔹 Increased corporate earnings in the energy sector, leading to calls for “windfall profit” taxation.
🔹 Public demand for energy transition investments to support sustainability goals.
This measure is temporary (for now), but depending on its effectiveness and economic conditions, it could influence future tax policies in Spain and across the EU.
What’s Next?
As June 2025 approaches, affected companies need to:
- Prepare for advance payment obligations.
- Review how they can use the strategic investment reserve to reduce tax liability.
- Stay updated on further government clarifications and regulations.
You might also want to consider Major Tax Changes in Spain: Personal Income Tax Updates
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