The decision not to update personal income tax (IRPF) in line with inflation continues to have direct effects on public accounts. According to the Annual Progress Report submitted by the Government to the European Commission, this measure allowed for the collection of almost 2.3 billion euros in additional revenue in 2025, consolidating itself as one of the Executive's main revenue-generating levers.
Specifically, the State obtained 1.137 million extra, while the autonomous communities added another 1.157 million, which raises the total impact to 0.14% of GDP. The Ministry of Economy openly acknowledges that the non-deflation of the IRPF bases is generating a sustained increase in income, in a context where the political debate on this issue has been open for years.
A Silent Way to Increase Revenue
Although the Government has not approved a structural tax reform in this legislature —mainly due to a lack of parliamentary support—, it has deployed a strategy based on partial adjustments and new tax figures. The result: more than 6.2 billion additional euros per year in public revenue.
These measures allow Spain to comply with the commitment made to Brussels to increase structural revenues by around 0.4% of GDP, combining selective tax increases with decisions such as the non-updating of personal income tax.
New taxes and rate hikes
Among the most relevant measures, the Temporary Solidarity Tax on Large Fortunes, which taxes assets over three million euros and contributes more than 600 million annually, stands out. Revenue has also increased from the new tax on products linked to tobacco and vapers, along with the increase in the tax on traditional tobacco products.
In parallel, the IRPF has incorporated changes in the taxation of savings, raising the rates for high incomes up to 30%, which has generated nearly 500 million additional per year.
Societies, the great revenue engine
Where the impact has been most noticed is in the Corporate Tax. The introduction of a minimum rate of 15%, along with the measures of the OECD's international framework (Pillar II), has driven up revenue by several billion. The limit on the offsetting of losses in corporate groups alone has contributed more than 4 billion in 2025.
In contrast, the only significant reduction in income comes from the reduction of the rate for SMEs and micro-enterprises, a measure promoted by Junts that will mean a progressive drop in revenue in the coming years.
Comply with Brussels without global reform
The balance that the Government conveys is clear: without a major fiscal reform, Spain is managing to increase revenues in a sustained manner and comply with European requirements. But it does so by relying on decisions such as the non-deflation of personal income tax, which, although technically discreet, have a direct impact on taxpayers' pockets.