As of January 1, 2025, a series of tax changes have come into force in Spain that affect both individuals and companies. These adjustments imply increases in the rates of VAT and other taxes, especially on services and basic products. Below, we detail the main changes that apply throughout Spain.
Increase in VAT on food products
- Basic foods: Products such as bread, milk, eggs, cheese, fruit, vegetables, legumes, potatoes and cereals have gone from a VAT of 0% to 4%.
- Seed paste and oils: These categories have seen VAT increase from 5% to 10%.
- Olive oil: Although it is considered a staple food, it is now taxed at 4% after an exemption period.
Return of VAT on electricity to 21%
Since 2022, electricity had been subject to a reduced rate of 5% as a temporary measure to deal with the energy crisis. From 2025, VAT returns to 21%, the usual rate for this service.
