What it is
Bill to cut VAT on dependency care services to 4%
It is a members’ bill. Introduced by parliamentary groups, the Senate, regional governments or citizens. It was introduced on 20 November 2020. Introduced by: Senado.
Official title: Private member's bill to amend Law 37/1992, of 28 December, on Value Added Tax, to apply the 4% VAT rate to the provision of all non-exempt dependency care services.
Source: Congreso de los Diputados, file 124/000005· updated 11 Nov
Automatic summary, not yet reviewed
- The bill would apply the super-reduced VAT rate of 4% to telecare, home help, day and night centers, and residential care services for dependent people, regardless of who pays for the service.
- Today these services can be VAT exempt if provided by public or social entities, or taxed at 4% or 10% depending on the provider. The 4% rule used to require a subsidized place and, since the 2018 Budget, a benefit covering at least 10% of the price.
- To achieve this, the bill would amend Article 91 of the VAT Law so that these services fall under the 4% rate. Services already exempt under another rule of that law would be excluded.
- If passed, the law would take effect on January 1 of the year after its publication in the Official State Gazette (Boletín Oficial del Estado).
Who it affects
- People in a situation of dependency: They would pay 4% VAT instead of 10% for services such as home help or telecare.
- Families of dependent people: They would pay less for private care services, especially if they have no public or subsidized place.
- Companies and entities providing these services: They would have to apply the 4% rate to all these services, except those that are exempt.
Words worth knowing
- IVA
- Value Added Tax (VAT), a tax paid when buying goods or services in Spain.
- Tipo superreducido
- The lowest VAT rate available; in this case, 4%.
- Plaza concertada
- A place in a private care home or center paid for through an agreement with a public authority.
- Exento
- Exempt, meaning no tax has to be paid.
- Proposición de ley
- A bill: a text proposed by the Senate or Congress that is not yet an approved law.
It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries
Where it stands
How far did it get?
It took 3 of 7 steps. It reached Amendments, and today it is unfinished.
- Introduced20 November 2020Someone registers the text in the Congreso.
- Admitted30 November 2020The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
- Amendments4 December 2020Groups propose changes.
- Committeenot reachedA committee goes through the text in detail.
- Plenarynot reachedAll 350 deputies vote.
- Senatenot reachedThe Senate can pass it, amend it or veto it.
- BOEnot reachedIt is published in the Official State Gazette (BOE) and comes into force.
See the 6 official steps on a timeline
Was there a plenary vote?
We have no plenary vote linked to this law in the Congreso’s data.
What happens next
What happens now?
The legislature ended before it finished. To go on, someone would have to introduce it again in the new Cortes.
It was presented again:
- XV Legislature, Congreso de los Diputados· Unfinished Bill proposes 4% VAT for all dependency care services
- XV Legislature, Senate Private member's bill amending Law 37/1992, of December 28, on Value Added Tax, to apply the 4 % VAT rate to the provision of all non-exempt dependency care services.
The same initiative in the other chamber:
- XIV Legislature, Senate Private member's bill to amend Law 37/1992, of 28 December, on Value Added Tax, to apply the 4% VAT rate to the provision of all non-exempt dependency care services.
Presented before in:
- XII Legislature, Congreso de los Diputados· Unfinished Proposal to cut VAT on all dependency care services to 4%
- XII Legislature, Senate Private member's bill to amend Law 37/1992, of 28 December, on Value Added Tax, to apply the 4% VAT rate to the provision of all non-exempt dependency care services.
Sources
Where does all this come from?
- Congreso de los Diputados, file 124/000005
Official title, type, author, dates and stage.
Retrieved 11 November 2026
- The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
- Each deputy’s province is the one of their seat on the day of the vote.
- We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.