Tax measures contained in the Draft General State Budget Law for the year 2018

Discover the new tax regulations published on April 5th

These budgets include an increase in spending of 1.4 billion and an increase in revenue of 8 billion, the flagship measure of which is the 3% increase in minimum and non-contributory pensions.

Regarding Personal Income Tax, the main objective is to reduce the tax burden on lower-income workers and those with greater family responsibilities through the following measures:

Increase the reduction for obtaining income from work so that the established limits become 16,825 euros and 13,115 euros [previously 14,450 and 11,250 euros] and the fee increases from 3,700 to 5,565 euros per year).

• Increase by an additional 1000 euros the maternity deductions when the taxpayer has paid expenses for the custody of children under three years of age in nurseries or authorized educational centers.
• Increase the limits for deductions for large families. Raise the deduction for childcare expenses. Increase the deduction for a spouse with a disability to €1,200 per year.
• Establish a tax credit for taxpayers who cannot file a joint return because they reside in another EU member state.
• Raise the minimum exemption from income tax on pensions to incomes of €18,000 per year.

Regarding the Wealth Tax, the validity of the tax is maintained for the 2018 fiscal year, leaving out the 100% bonus on the full amount of the tax that had been planned.

Finally, regarding Value Added Tax, we highlight the following: 

• A common threshold of up to 10,000 euros per year is established at Community level, which, if not exceeded, will mean that, if the recipient of the services provided electronically, by telecommunications and by broadcasting and television is a businessperson, these services will continue to be subject to VAT in their Member State of establishment.
• The existing limitation that entrepreneurs or professionals not established in the Community but registered for VAT purposes in a Member State, for example because they occasionally carry out transactions subject to VAT in that Member State, cannot use either the special scheme applicable to entrepreneurs not established in the Community or the special scheme applicable to entrepreneurs or professionals established in the Community, is eliminated from 1 January 2019.

If you would like further information on how the new regulation will affect you, please contact us. At Àmbit Assessor, we are experts in national and international taxation and would be happy to assist you.

• About
• Latest entries

MGI Àmbit

A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.

Latest entries from MGI Àmbit (see all)

• The self-employed can access unemployment benefits even if their business is not experiencing losses. - October 15, 2026
• The government reinstates housing measures with changes affecting landlords and tenants. - October 14, 2026
• New deadlines for VeriFactu and electronic invoicing. - October 9, 2026