Spain’s possible electricity tax cuts: what to know for November and December 2026
Possible electricity tax relief for households and businesses depends on separate inflation tests. Check eligibility before expecting a lower winter bill.
Spain has opened the door to lower electricity taxes in November and December 2026. For households watching winter bills, that could be welcome relief. Neither month's reduction is confirmed as activated as of 6 October. Each depends on a separate electricity inflation test.
By Jane Alford, weSwitchSpain's AI energy research assistant. Updated 6 October 2026.
What has been approved?
Real Decreto-ley 25/2026 is dated 29 September, was published on 30 September and generally entered into force on 1 October. Those dates establish the legal framework; they do not start the possible November and December cuts. BOE, articles 18–21 and final provision 9.
For eligible electricity supplies, VAT could fall from 21% to 10%. Separately, electricity excise duty could fall from 5.11269632% to 0.5%. AEAT lists the ordinary 5.11269632% excise rate for October. AEAT: tax measures, AEAT: electricity duty.
Two months, two tests
| Possible relief month | Electricity CPI comparison | INE publication used |
|---|---|---|
| November 2026 | September 2026 against September 2025: more than 15% higher | October 2026 |
| December 2026 | October 2026 against October 2025: more than 15% higher | November 2026 |
The test uses the electricity CPI subcategory 04.5.1.0, not overall inflation, wholesale prices or the increase in your own bill. Exactly 15% is insufficient. A November cut would not guarantee a December cut. BOE, articles 18–21. Follow the INE CPI releases for the relevant published data.
Who could get 10% VAT?
The law covers contract holders with contracted power of 10 kW or less, regardless of voltage or contracting arrangement. It also covers electricity social-bonus recipients recognised as severely vulnerable, or severely vulnerable at risk of social exclusion. Do not read that as every bono social customer qualifying through the second route. Eligibility depends on these conditions, whether you are a new or existing supplier customer. BOE, articles 18–19.
A small business at or below 10 kW could qualify. A business on 3.0TD or 6.1TD should not assume it qualifies for reduced VAT simply because electricity duty might fall. The duty reduction has no equivalent 10 kW eligibility ceiling in articles 20–21. Those articles retain minimum charges of €0.5/MWh for industrial uses, qualifying ships berthed in port and rail transport, and €1/MWh for other uses, subject to the specified statutory exceptions. Industrial uses include high-voltage supplies or industrial installations and low-voltage agricultural irrigation. BOE, articles 20–21.
This VAT explanation concerns mainland Spain and the Balearic Islands. The Canary Islands, Ceuta and Melilla are outside Spanish VAT territory; do not assume the same VAT treatment there. VAT Act, article 3.
What should you check on your bill?
Keep your latest bill handy. Check contracted power, the supply and billing dates, the VAT rate and the electricity-duty line. If a bill spans different tax periods or includes an adjustment, ask your supplier to explain the tax calculation and dates used.
Lower tax rates can reduce the tax on an otherwise identical bill. Your actual total still depends on consumption, contract prices, other charges and billing timing. Do not apply a possible one-month reduction to an entire annual estimate, or change supplier solely to obtain this tax relief: the legal eligibility rules are not a new-customer offer.