Measures affecting the regulation governing main direct and indirect taxes were approved in December 2014.


Act 26/2014, of November 27, amending Act 35/2006, of November 28, on  Personal Income Tax, the restated text of the Act on the Income Tax of Non-Residents, approved by Royal Legislative Decree 5/2004, of March 5, and other tax regulations

BOE 288, November 28, 2014

This act reforms personal income tax by introducing several amendments. Although some of these amendments aim to reduce taxpayers’ tax burden, others increase the tax threshold.

  • Up to €180,000 compensation received by employees dismissed or terminated after August 1, 2014, is exempt from personal income tax.
  • Income from capital: the €1,500 exemption per year on obtaining dividends is eliminated.
  • Income from business activities: costs hard to justify may not exceed €2,000 per year.
  • Remuneration in kind: the requisites are qualified as necessary for the non-taxation of the handover of shares and interests to employees.
  • Limits and scales affecting taxable income and savings, the tax basis, the personal and family minimum and minimum due to disability, the tax scale and full payment and deductions, are amended.
  • Special systems: system for employees relocated to Spanish territory (“inpatriates”) is extended. A new system is established for alleged changes of residence (“exit tax”).
  • Non-residents income tax: its regulations are adapted to the Community regulation framework, strengthening the fight against tax fraud.
  • Tax on inheritance and donations: its regulations are adapted to eliminate the discrimination cases described in the Judgment of the Court of Justice of the European Union dated September 3, 2014.