Europe

As of 21 October 2026, the Spanish government faces a dual mandate to present the national budget and undertake a comprehensive reform of the regional financing model and the tax system. This requirement stems from a political agreement that ties budget approval to structural fiscal reforms aimed at addressing territorial imbalances and modernizing revenue collection.

On 21 October 2026, Spain’s Central Economic-Administrative Tribunal (TEAC) issued a binding ruling clarifying that the personal income tax (IRPF) exemption for reinvestment in a primary residence is forfeited when the sale of the former home is delayed more than two years due to an international job transfer. The decision interprets Article 38 of the

On 21 October 2026, the Council of Ministers approved Royal Decree-Law 7/2026, introducing a temporary IRPF deduction for the acquisition of habitual residence by taxpayers expecting their third (or subsequent) child. The measure, effective for purchases formalized between 1 January 2027 and 31 December 2028, allows a 15% deduction on the acquisition cost (max €15,000

On 21 October 2026, the Spanish Association of Tax Advisors (AEDAF) published an opinion column by Belén Álvarez Pérez, coordinator of AEDAF’s Accounting Expert Group, addressing the ongoing debate over audit threshold simplification for Spanish companies. The article examines the European Commission’s proposal to raise the thresholds for mandatory statutory audits, which would exempt more