Bill would update Navarra's Economic Agreement for new state taxes

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1. The full house of the Congress of Deputies has approved the bill by single reading and under the urgent procedure. The bill would amend the Economic Agreement between the State and Navarra as set out in the annex.
2. The bill would add the Complementary Tax, which applies to large multinational and large domestic groups, setting which rules (foral or common) apply to each taxpayer and who collects and audits the tax.
3. It would also add the tax on the interest and commission margin of certain financial institutions, with rules on applicable law, collection and audit based on each taxpayer's Corporate Income Taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. or Non-Resident Income Tax rules.
4. The Non-Resident Income Tax would become a tax with its own Navarra rules: articles 28, 30 and 30 bis would be amended to decide when foral or state rules apply.
5. For several taxes (electricity, nuclear, bank deposits, VAT, excise duties, gambling, insurance, digital services, waste and others), Navarra could set its own management rules and formal obligations if it creates new tech-based invoicing or record-keeping methods, while guaranteeing data exchanges with the State.
6. The turnover threshold for splitting revenue between the State and Navarra would be set at twelve million euros for Corporate Income Tax, VAT and gambling, applying to periods starting from January 1, 2026. The law would take effect the day after its publication in the official state gazette (BOE).

Who it affects

• Large multinational and large domestic groups: New rules to determine which authority applies the Complementary Tax and who audits them.
• Financial institutions: New collection and audit rules for the tax on the interest and commission margin.
• Non-residents with income in Spain: The rules applying in Navarra to the Non-Resident Income Tax change.
• Companies operating in both Navarra and the rest of Spain: The twelve million euro threshold determines whether they pay one or both authorities.
• Taxpayers in Navarra in general: Navarra could introduce new invoicing and record-keeping methods for many taxes.

Words worth knowing

Convenio Económico (Economic Agreement)

The rule that divides taxes and tax revenue between the Spanish State and Navarra.

Normativa foral (foral rules)

The tax rules Navarra can set for itself, as opposed to the State's common rules.

Puntos de conexión (connecting factors)

Criteria that decide whether foral or state rules apply to a taxpayer, and who collects the tax.

Volumen de operaciones (turnover)

A company's total sales in a period, used as a threshold to apply one set of rules or another.

Consolidación fiscal (fiscal consolidation)

A regime allowing a group of companies to be taxed as a single entity.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the text passed by the full Congreso. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries