Extension of social aid, pension increase and tax measures for 2026

Automatic summary, not yet reviewed

1. The suspension of evictions and removals from homes for households in economic vulnerability without a housing alternative is extended until December 31, 2026. Affected owners may request compensation until January 31, 2027.
2. The discounts of the electricity social bonus are extended during 2026: 42.5 % for vulnerable consumers and 57.5 % for severely vulnerable ones. The guarantee of water and energy supply to these consumers is also kept until December 31, 2026.
3. Contributory pensions from Social Security and from the State's passive classes scheme rise by 2.7 % in 2026. Non-contributory pensions, SOVI pensions, family benefits and other supplements are also updated.
4. The maximum limit for public pensions started in 2026 is set at €3,359.60 per month. Contribution bases are also updated, with a ceiling of €5,101.20 per month, and the Intergenerational Equity Mechanism contribution and the solidarity levy are set.
5. The 2025 minimum wage is extended until the one for 2026 is approved. Companies receiving direct aid may not fire workers because of higher energy costs until December 31, 2026, and those using hour-reduction or contract-suspension procedures due to the war in Ukraine may not use those grounds for layoffs.
6. The thresholds that allow small self-employed workers to stay in the objective estimation method for personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. and in the simplified VAT schemes are extended, and a window to file waivers or revocations opens until January 31, 2026.
7. Tax incentives for electric vehicles, charging points and energy-efficiency works are extended under personal income tax and corporate tax. Aid for personal damage from the 2025 wildfires is declared tax exempt, and aid for the 2024 DANA floods is extended to entities without legal personality.
8. The interim payments to autonomous communities and local entities are updated during the 2026 budget extension, an exceptional borrowing regime for autonomous communities is regulated, and the Valencian Community is allowed extra funding for DANA-related expenses.

Who it affects

• Households facing eviction: Can request suspension of their eviction until the end of 2026 if they prove economic vulnerability.
• Pensioners and benefit recipients: Their pensions and benefits rise by 2.7 % in 2026, with updated minimum amounts.
• Vulnerable electricity and water consumers: Keep the social bonus discounts and the water and energy supply guarantee during 2026.
• Self-employed workers and personal income taxpayers: Can stay in simplified tax schemes and access deductions for electric vehicles and energy-efficiency works.
• Autonomous communities and local entities: Receive updated interim payments and can use the exceptional 2026 borrowing regime.

Words worth knowing

Bono social

Discount on the electricity bill for domestic consumers in a situation of vulnerability.

Prórroga presupuestaria

Budget extension: when no new budgets are passed, the previous year's budgets remain in force.

Estimación objetiva (módulos)

A simplified way for small self-employed workers to pay personal income tax, based on signs and indexes instead of actual income.

Entregas a cuenta

Advance payments the State makes to autonomous communities and local entities as part of their funding.

Lanzamiento

The act of physically removing a person from a home after a court ruling.

income tax

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

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries