- The government extends the VAT reductions, lowers income tax, updates advance payments, and increases the salaries of public officials
- Basic food items like bread, milk, and fruits will remain at 0% VAT, with olive oil also included in the super-reduced rate
- Pasta and other seed oils will stay at 5% VAT for the next three months
- A reform of income tax will exempt those earning the minimum wage of 15,876 euros annually from taxation
- Regional and local governments will receive record-high resources with the updated advance payments, separate from the General State Budget
- Public sector employees will see a 2% increase in their salaries retroactively from January 1st of this year
Source: hacienda.gob.es
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
