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Main tax changes introduced by Royal Decree-Law 5/2023

PERSONAL INCOME TAX (IRPF)

With from June 30, 2023, an Additional Provision fifty- is added by article 189 of RD-law 5/2023 to Law 35/2006, of November 28, on Personal Income Tax. 

new deductions are established to promote the acquisition by individuals of electric vehicles not related to an economic activity

  • Deduction for the purchase of plug-in electric and fuel cell vehicles

    The deduction will be applied for a single purchase of any of the vehicles that meet the requirements established in the aforementioned Royal Decree-Law.

    Taxpayers may deduct 15% of the purchase value of a new electric vehicle in any of the following circumstances, having to choose to apply the provisions of letter a) or b):

    1. When the vehicle is purchased from June 30, 2023 to December 31, 2024.

      The deduction will be applied in the tax period in which the vehicle is registered.

    2. When, from June 30, 2023 to December 31, 2024, an amount is paid to the seller on account for the future acquisition of the vehicle that represents at least 25% of the acquisition value of the vehicle.

      The deduction will be applied in the tax period in which the amount is paid, and the remainder must be paid and the vehicle purchased before the end of the second tax period immediately following the period in which the amount was paid.

    The maximum deduction base , in both cases, will be 20,000 euros and will consist of the purchase value of the vehicle, including the expenses and taxes inherent to the purchase, having to deduct those amounts that, where appropriate, have been subsidized or are to be subsidized through a public aid program.

  • Deduction for the installation of charging infrastructure

    Taxpayers will be able to deduct 15% of the amounts paid from June 30, 2023 to December 31, 2024, for the installation during said period in a property owned by them of battery recharging systems for electric vehicles not affected by an economic activity.

    The maximum annual base of this deduction will be 4,000 euros per year and will consist of the amounts paid, by credit or debit card, bank transfer, personal check or deposit into accounts in credit institutions, to the persons or entities that carry out the installation, having to deduct those amounts that, where appropriate, have been subsidized through a public aid program.

    In no case shall amounts paid in cash be eligible for deductions.

    For these purposes, the amounts paid for the installation of the recharging systems will be considered as those necessary to carry it out, such as the investment in equipment and materials, installation costs and the works necessary for its development.

    The deduction will be applied in the tax period in which the installation is completed, which cannot be after 2024 .

    When the installation is completed in a tax period after the one in which amounts were paid for such installation, the deduction will be applied in the latter taking into consideration the amounts paid from June 30, 2023, to December 31 of said tax period.

    To apply the deduction, the authorizations and permits established in current legislation must be obtained.

    In the event that, after acquisition or installation, the vehicles or battery recharging systems are used for an economic activity, right to the deduction applied will be lost.

CORPORATION TAX

  • Accelerated amortization for investments in electric vehicle charging infrastructure

    With effect from June 30 2023 the Eighteenth Additional Provision of Law 27/2014, of November , on Corporate Income Tax, is amended by article 190 of RD-Law 5/2023, new cases of accelerated depreciation:

    The investments in new charging infrastructure for electric vehicles, of normal power or high power , in the terms defined in article 2 of Directive 2014/94/EU of the European Parliament and of the Council, of October 22, 2014, regarding the implementation of an infrastructure for alternative fuels, affecting economic activities, and coming into operation in the tax periods beginning in the years 2023, 2024 and 2025, may be amortized based on the coefficient resulting from multiplying by 2 the maximum linear amortization coefficient provided for in the officially approved amortization tables.

    For the application of the accelerated amortization regulated in the previous section, compliance with the following requirements be required

    1. Contribution of the required technical documentation , according to the characteristics of the installation, in the form of a Project or Report, provided for in Royal Decree 842/2002, of August 2, which approves the low voltage electrical regulations, prepared by the authorized installer duly registered in the Integrated Industrial Registry, regulated in Title IV of Law 21/1992, of July 16, on Industry, and in its implementing regulations.

    2. Obtaining the electrical installation certificate completed by the competent Autonomous Community.

VALUE ADDED TAX

  • 0% and 5% tax rate applicable to food

    With effect from June 30, 2023 , article 171 of RD-Law 5/2023, modifies article 72 of RD-Law 20/2022, of December 27, and extends, during the second half of 2023, the application of the 0% tax rate that falls on basic food products, as well as the 5% rate with which olive and seed oils and pasta are taxed, in order to contribute to the reduction of the final price of these foods.

    The rate of the equivalence surcharge corresponding to these products is also extended to 0% and 0.62% respectively.

    However, this rate reduction would cease to be in effect as of November 1, 2023, if the annual rate of underlying inflation for the month of September, published in October, is less than 5.5%.

    Please note that the basic food products to which the % rate applies are the :

    1. common bread , as well as frozen common bread dough and frozen common bread intended exclusively for the production of common bread
    2. The ## baking flours
    3. The following types of milk produced by any animal species: natural, certified, pasteurized, concentrated, skimmed, sterilized, UHT, evaporated and powdered.
    4. The cheeses
    5. The eggs
    6. The fruits, vegetables, legumes, tubers and cereals , which have the status of natural products in accordance with the Food Code and the provisions issued for its development