What it is
La Palma aid: budget surplus, income tax break and loan pause
Amendments step 3 of 7· LapsedIt is a government bill. Introduced by the Government. It was introduced on 11 December 2025. Introduced by: Gobierno.
Official title: Government bill adopting complementary urgent measures for the economic and social recovery of the island of La Palma after the damage caused by volcanic eruptions (originating from Royal Decree-Law 13/2025, of November 25).
Source: Congreso de los Diputados, file 121/000080· updated 11 Nov
Automatic summary, not yet reviewed
- The bill would allow the Canary Islands regional government to use 100 million euros of its 2024 budget surplus to fund aid for individuals and entities affected by the La Palma volcanic eruption, mainly damage to farm plots and compensation for infrastructure built on expropriated or lava-damaged land. That spending would not count toward the spending rule.
- The income tax (IRPF) deduction for residents of the island of La Palma, similar to the one for Ceuta and Melilla, would be extended to the 2025 tax period.
- A new application window, open until January 15, 2026, would let farmers in El Paso, Los Llanos de Aridane and Tazacorte who are listed in the register of people affected by the eruptions request a new six-month suspension of interest and principal payments on loans and credits, with or without a mortgage guarantee, from January 1 to June 30, 2026.
- Section 2 of Article 46 of Royal Decree-Law 20/2021 would be amended to remove the time limit on subsidized actions to prevent and mitigate damage to biodiversity and natural heritage, so funded projects can be completed.
- The rule is issued under the State's exclusive powers over credit, banking and insurance, economic planning, treasury and debt, and basic environmental legislation.
- The royal decree-law would take effect the day after its publication in the Official State Gazette (Boletín Oficial del Estado).
Who it affects
- Individuals and entities affected by the La Palma volcanic eruption: Could receive aid funded with 100 million euros of the Canary Islands' 2024 surplus.
- Taxpayers with habitual and effective residence on the island of La Palma: Could apply a Ceuta and Melilla-style deduction on their 2025 income tax.
- Farmers in El Paso, Los Llanos de Aridane and Tazacorte listed in the register of affected people: Could request, until January 15, 2026, a new six-month pause on loan and credit payments.
- The Canary Islands regional government and the Cabildo de La Palma: Could carry out biodiversity protection projects funded by the Ministry beyond December 2025.
Words worth knowing
- Real decreto-ley (royal decree-law)
- A rule with the force of law that the Spanish Government can pass urgently, without full parliamentary procedure first. Congress must later approve it.
- Superávit presupuestario (budget surplus)
- When a government takes in more money than it spends in a year.
- Regla de gasto (spending rule)
- A legal limit on how much public administrations can increase their spending.
- Período impositivo (tax period)
- The calendar year covered by an income tax return.
- Garantía hipotecaria (mortgage guarantee)
- The loan is backed by a home or other property: if it is not repaid, the lender can take it.
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 lapsed.
- Introduced11 December 2025Someone registers the text in the Congreso.
- Admitted16 December 2025The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
- Amendments19 December 2025Groups 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 5 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.
Sources
Where does all this come from?
- Congreso de los Diputados, file 121/000080
Official title, type, author, dates and stage.
Retrieved 11 November 2026
- Congreso de los Diputados, procedure
The date of each step, with its official wording.
Retrieved 12 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 never say “passed” because of a vote: the files do not say which majority was needed.