In Spain, the start of 2024 has ushered in significant alterations to the tax system.

The changes, which came into effect on January 1, will impact individuals, businesses, and self-employed professionals nationwide.

These adjustments are part of the government’s efforts to navigate the post-inflation and post-Ukraine invasion economic landscape.

The Spanish government has announced modifications to up to 14 taxes as of the new year. These changes are not merely increases but a recalibration to pre-pandemic norms.

Many of these taxes had been temporarily reduced to mitigate the economic impact of inflation and the Ukraine crisis. As the situation stabilizes, the government is returning to its standard tax regime.

A significant change is removing the 10 per cent reduction in personal income tax for self-employed individuals under the module system.

This system, known as the objective estimation system, will now see these professionals paying approximately €120 million more in taxes compared to 2023.

Acknowledging the past challenges, the Spanish Treasury has permitted a general reduction of 5 per cent in 2024. This adjustment follows a trend of temporary increases in tax reductions, which included a 15 per cent reduction in 2022 and 10 per cent in 2023.