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Measures taken by the Spanish Government against the crisis caused by the war in Iran are in force

Electricity and fuel are cheaper, not least because VAT has fallen from 21% to 10%.
SKOPJE (Republic of North Macedonia), 09/03/2026.- Motorists queue at a gas station in Skopje, North Macedonia, 09 March 2026. After the Regulatory Commission announced an increase in petrol and diesel prices at gas stations, people rushed to fill the tanks of their vehicles. The price of diesel rose by 20 Euro cents, creating queues at gas stations. Diesel sales are limited to 2,000 denars (around 35 Euros) per vehicle. Fueled by the escalating conflict in the Middle East, the international oil benchmark, Brent Crude, surged past 100 US dollars per barrel on 09 March 2026. EFE/EPA/GEORGI LICOVSKI
Gas station. Photo: EFE

On Sunday, the anti-crisis measures adopted by the Spanish Government on Friday and published on Saturday in the BOE entered into force.

According to the Government's forecast,  is a package of measures that will mobilizeEUR 5 billion , consisting of two decrees that include general economic measures such as tax reductions in fuel, electricity and gas and aid to the most affected sectors, and another that includesfreezing rents  for two years, promoted by Sintre.

The Congress of Deputies shall vote on 26 March to approve or reject the decrees.

Main measures

The plan includes measures for a "drastic reduction in energy taxation", as electricity taxes will fall by 60% overall. 

In particular, the VAT onelectricity  will be reduced from 21% to 10%, the Value Tax on Electricity Production (EEA), which is paid by companies, will be suspended by 7%, and the Special Tax on Electricity (EEC), which is paid by consumers, will be reduced from 5% to 0.5%, to the minimum set by the European Union.

The plan will include an 80% bonus for electric tolls for the most endangered industries, with savings of EUR 200 million, and greater flexibility for energy supply contracts for businesses and self-employed people.

Similarly, all extraordinary discounts on the electric social bond will be extended until the end of the year, the thermal social bond will be "significantly" strengthened and the ban on cutting essential supplies to vulnerable households will be extended. 

It has also been agreed to reduce VAT on natural gas, pellet and wood from the general rate (21%) to a reduction (10%) and to freeze the price of butane and propane.

The Executive has also decidedto reducethe VAT onpetrol , diesel and other hydrocarbons  from 21% to 10% and to reduce the tax on hydrocarbons to the minimum permitted in the European Union.

Sanchez has said thataccording to the fuelused  the measure will mean a reduction of 30 cents per litre . "In other words, when filling the tank of a normal car, 20 euros will be saved. That is the effect it will have on our citizens' pockets," the Spanish Chief Executive explained at a press conference.

On the other hand, thedirect bonusof 20 cents per litre of fuel  will be given to carriers, farmers, farmers and fishermen  and theequivalent aid  will be giventothe fertilizer , so that these sectors can 'cope with this crisis' and 'maintain as much as possible the prices of the shopping basket' of citizens.

Energy sovereignty

In tax matters, the Spanish Government's plan includesstructural measures to promotethe electrification ofthe economy  and energy sovereignty , including deductions from the Personal Income Tax (IRPF) for the installation of solar panels, charging points and heat pumps, as well asdeductionsof 15% for the purchase of electric vehicles  or plug-in.

In the Corporation Tax (IS), when renewable systems for the replacement of fossil equipment are installed, the amortization freedom shall be granted, and municipalities shall be empowered to grant a bonus of up to 50% of the Immovable Property Tax (IBI) to those who have installed systems for the thermal or electrical use ofrenewable energies , as well as a bonus of up to 95% for the works and installations of such systems.

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