Climate change tax reforms and incentives in Spain

1. Has your country ratified the Paris Agreement? 

Yes.

2. Has your country introduced environmental taxes?

2.1 Energy taxes

Hydrocarbon tax (Impuesto especial sobre Hidrocarburos): The most important tax in terms of profits for the country. Indirect taxation on the production of hydrocarbons used as fuel, as additives or to increase the volume of hydrocarbons. 

Electricity tax (Impuesto especial sobre la electricidad): Indirect tax on the consumption of electricity. It taxes both the supply of electricity for consumption by end users, and consumption by the electricity generating companies themselves.

Tax on the value of the production of electric energy (Impuesto sobre el valor de la produccion de la energia electrica): Direct tax on the production of electrical energy and its incorporation into the electrical energy system. 

2.2 Transport Taxes

Tax on certain means of transport (Impuesto sobre determinados medios de transporte): Indirect tax related to the first car registration of vehicles in Spain. Tax rates applicable depends on the CO2 emissions. 

Tax on motor vehicles (Impuesto sobre vehículos de tracción mecánica): Direct local tax. The taxable event is the ownership of a vehicle suitable for driving on public roads. Tax allowance is determined in relation to the type of vehicle and fuel used. 

2.3 Pollution taxes

Tax on the value of the extraction of gas, oil and condensates (Impuesto sobre el valor de la extracción de gas, petróleo y condensados). Direct tax on value of the products of extracted public domain gas, oil and condensates.

Tax on the production of spent nuclear fuel and radioactive waste from the generation of nuclear electric power (Impuesto sobre la producción de combustible nuclear gastado y residuos radiactivos resultantes de la generación de energía eléctrica). The taxable event is the production of spent nuclear fuel.

Tax on the storage of spent nuclear fuel and radioactive waste in centralised facilities (Impuesto sobre el almacenamiento de combustible nuclear gastado y residuos radiactivos en instalaciones centralizadas). The taxable event is the storage activity of spent nuclear fuel.

Tax on fluorinated greenhouse gases (Impuesto sobre los gases fluorados de efectos invernadero). Taxation on the consumption of gases used as refrigerants, solvents etc. 

Tax on coal (Impuesto especial sobre el carbón) on the production of coal. The taxable event is the first sale of the goods after their production or extraction in Spain. 

2.4 Resources taxes

Please note that in Spain, certain Autonomous region have also implemented particular green taxes which are not detailed here (such as taxes on CO2 emissions, on the environmental installations, tax on the water used to generate electricity etc.). 

3. Has your country introduced a carbon tax?

No  

4. Does your country offer sustainability incentives (tax credits, subsidies or other business incentives) to encourage taxpayers to engage in behaviours and develop technologies that can impact positively the environment? 

Corporate Income Tax: Deductible expenses related to environmental action (decontamination, restoration of contaminated sites, waste disposal). 

Personal Income Tax: Deduction for donations made for ecological purposes or on costs associated with environmental installations – applicable in certain Autonomous Regions. 

5. Has your country recently announced tax reforms connected to climate change? 

  • Increase in the tax on vehicles.
  • New tax on diesel.
  • New tax on airline tickets.

6. Other comments

N/A

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Diego de Miguel
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Madrid