A law published in Spain’s official state gazette on 30 April 2025 updates the Economic Agreement with the Autonomous Community of the Basque Country (dating from 2002) to align the agreement with changes in Spain’s national tax system and allow the Basque region to regulate and collect additional taxes, effectively increasing the region’s fiscal autonomy.
Among the changes, the national global minimum tax under the EU directive and the tax on the net interest and commission margin of certain financial institutions are transposed into Basque law, thus harmonizing the Basque region with Spain’s tax law. In addition, the turnover threshold that is used to determine whether national or regional regulations should be followed and which authority has audit power is increased from EUR 10 million to EUR 12 million. The increased threshold will apply as from 1 January 2026 to corporate income tax, VAT and the gambling tax. Companies exceeding the threshold and operating in both the Basque region and in Spain generally will be required to pay taxes to both administrations in proportion to the turnover generated in each territory.
Another significant development is the inclusion of a new measure that enables collaboration mechanisms between tax authorities to facilitate access to the import VAT deferral scheme for taxpayers that are not fully taxed under the state, eliminating a practical barrier for operators in the Basque region. Additionally, technical improvements are made to tax management and control, allowing regional bodies to impose new formal compliance obligations (e.g., invoicing and/or record-keeping) based on technological developments, provided information exchange with the state administration is guaranteed.
Alvaro Gomez-Elvira
Andrés Díaz González
BDO in Spain
Among the changes, the national global minimum tax under the EU directive and the tax on the net interest and commission margin of certain financial institutions are transposed into Basque law, thus harmonizing the Basque region with Spain’s tax law. In addition, the turnover threshold that is used to determine whether national or regional regulations should be followed and which authority has audit power is increased from EUR 10 million to EUR 12 million. The increased threshold will apply as from 1 January 2026 to corporate income tax, VAT and the gambling tax. Companies exceeding the threshold and operating in both the Basque region and in Spain generally will be required to pay taxes to both administrations in proportion to the turnover generated in each territory.
Another significant development is the inclusion of a new measure that enables collaboration mechanisms between tax authorities to facilitate access to the import VAT deferral scheme for taxpayers that are not fully taxed under the state, eliminating a practical barrier for operators in the Basque region. Additionally, technical improvements are made to tax management and control, allowing regional bodies to impose new formal compliance obligations (e.g., invoicing and/or record-keeping) based on technological developments, provided information exchange with the state administration is guaranteed.
Alvaro Gomez-Elvira
Andrés Díaz González
BDO in Spain