Revaluation of pensions and benefits in 2024

• Since January 1, there has been a general increase of 3.8% in pensions from the Social Security system and the State's passive classes. This measure implies an annual increase of 734 euros in the average retirement pension, which is 1,380 euros per month, equivalent to 52 euros per month.
• 6.9% increase in minimum, non-contributory pensions and Minimum Living Income.
• Equalization of the minimum widow's pension with family responsibilities to that of the minimum retirement pension with a dependent spouse, generating an increase of 14.1%.
• Revaluation of 6.9% in non-contributory old-age and disability pensions (SOVI), reaching 517.9 euros per month (7,250.6 euros per year).
• Establishment of the minimum pension for single-person households at 11,552.8 euros per year and 14,466.2 euros per year in cases with a dependent spouse.
• The estimated cost of the revaluation for 2024 is 7.3 billion euros, rising to 8.28 billion if the increase in minimum pensions, non-contributory pensions and the IMV are included.

Greater protection for researchers

• It is possible to subscribe to a special agreement for researchers that allows extending, up to a maximum of 5 years, the calculation as contributions of the training periods for university graduates with doctoral studies dated before February 4, 2006, who have participated in research programs, both in Spain and abroad.
• The period for registration and deregistration in the General Treasury of Social Security of training practices is extended.

Relief contract

• Extension of partial retirement with a replacement contract in the manufacturing industry for workers with high physical wear and tear and at least six years of seniority in the company, provided that, at the time of retirement, the percentage of workers with an indefinite contract exceeds 70% of the workforce. The reduction in working hours remains between 25% and 67%. This extension extends until December 31, 2024.

Extension of aid related to the La Palma volcano

• The postponement of the payment of Social Security contributions whose maturity occurs between January and March 2024 for companies, and between February and April 2024 for self-employed workers, is extended.
• The special benefit for cessation of activity for the self-employed as a direct consequence of the volcanic eruption is extended for 6 months.
• The 100% exemption in the contribution applicable to the Temporary Employment Regulation Files (ERTE) due to force majeure in Puerto Naos and La Bombilla is maintained with respect to the business contribution for common contingencies and for joint collection concepts whose expiration occurs between January and June 2024.

Minimum Interprofessional Wage

• The validity of Royal Decree 99/2023, which establishes the Minimum Interprofessional Wage (SMI) for 2023, is extended for the time necessary to ensure the continuity of the work of the Social Dialogue Table in the search for an agreed increase in the Minimum Interprofessional Wage.

Temporary Employment Regulation Files (ERTE)

• The Temporary Employment Regulation Files (ERTE) linked to the situation of temporary force majeure for companies and workers in the Canary Islands affected by the volcanic eruption registered in the Cumbre Vieja area are extended until June 30, 2024.

Prohibition of dismissal

• Companies benefiting from direct aid will not be able to justify objective layoffs based on the increase in energy costs until next June 30.

New fund to attract foreign investment to Spain in strategic sectors

• A new financial instrument called the Co-Investment Fund (FOCO) is established, endowed with 2,000 million euros from the European Next Generation EU funds. Its purpose is to contribute to the transformation of the Spanish production model by attracting foreign investment to private companies that make investments in areas such as energy transition, digital transformation, sustainable mobility, biotechnology or sustainable agriculture. The management of this fund has been entrusted to the public company COFIDES.

Financial inclusion of elderly or disabled people

• The imposition of commissions for cash withdrawals at the window for people over 65 years of age and those with disabilities is eliminated.

Security of payment systems

• Measures are reinforced to improve security and generate trust in payment systems, with the aim of minimizing technological incidents. These actions include the thorough identification of all sources of risk related to Information and Communication Technologies (ICT), the rapid detection of unusual activities, efficient resolution of network performance problems and incidents, and the implementation of backup, restoration and recovery policies and procedures. Crisis communication plans are also established.

Extension of tax reductions on electricity and gas bills

• The tax reduction on the Value Added Tax (VAT) on electricity consumed by homes is maintained. The VAT rate is set at 10% throughout 2024.
• For gas bills, the same 10% tax will apply until March 31. In addition, this type of VAT is extended to pellets, briquettes and firewood until June 30.
• The reduction of the Special Tax on Electricity is maintained during the first half of 2024, being 2.5% in the first quarter and increasing to 3.8% in the second.
• A gradual recovery of the Tax on the Value of Energy Production is promoted.
• The maximum price allowed for butane remains at 19.55 euros per cylinder.

Energy measures, promotion of renewables and reduction of the impact of drought

• It extends for six months:

1. The prohibition of cutting off essential supplies of electricity, water and gas to consumers in vulnerable situations.
2. The reinforced discounts of the social bonus and its three categories of beneficiaries.
3. Current electrical charges.
4. Aid for regulated gas rates (TUR).
5. The 80% exemption on electricity tolls for the electro-intensive industry.
6. Flexibility to adjust the contracted electrical power and gas supply contracts.

• The processing period for new renewable energy projects is extended to eight years.
• Qualitative criteria are incorporated into renewable auctions that recognize the social and environmental value of the European industry.
• More network capacity will be allocated to encourage self-consumption.
• Remuneration for cogeneration is increased, establishing reference values ​​to calculate its regulated income, considering the price of electricity and gas in wholesale markets. The estimated remuneration for the first half of 2024 is 685 million for cogeneration and waste treatment, and 2.23 million for biomass.
• Hydroelectric energy storage is promoted, integrating it into the uses of water and placing it in third place in the order of preference, behind supply to populations and agricultural use. The concessions of pumped hydroelectric plants are adapted to consider them as hydraulic energy storage.

1. Urgent tax and administrative measures are adopted to counteract the impact of water scarcity. Exemptions are applied to the regulation fee and the water use rate for agricultural holdings benefiting from hydraulic works, with reductions of 50% in the fee in the event of a decrease in the water supply between 40% and 60%, and 100% if the decrease is equal to or greater than 60%.
2. The hydrographic confederations have the power to establish the necessary supply reductions to guarantee an equitable distribution of resources. They can modify the priority criteria in allocations and provisionally suspend the granting of titles that imply an increase in consumption.
3. The sanctioning regime is reinforced for infractions related to these measures.

• Incentives for energy rehabilitation and freedom of depreciation Income tax deductions linked to energy rehabilitation works in homes or buildings are extended. The freedom of amortization is also extended for investments that use energy from renewable sources.

VAT on food

• The tax reduction on food is extended until June 30, 2024. Pastas, olive oils and seeds will maintain the reduced VAT of 5%, and foods considered essential will retain a VAT rate of 0% (common bread, bread flour, milk, cheese, eggs, fruits, vegetables, legumes, tubers and cereals).

Measures for the self-employed

• During 2024, self-employed workers are allowed to apply the objective estimation method to calculate the net return on their economic activity.
• Exception for agricultural, livestock and forestry activities, which already have specific quantitative limits.
• The limits for the application of the simplified regime and the special regime for agriculture, livestock and fishing in VAT are also extended.

Temporarily extended liens

• Temporary energy levies and levies on credit institutions and financial credit establishments are extended during 2024. The future review of both taxes is contemplated for their full integration into the tax system.
• A possible agreement is planned with the communities of the Basque Country and Navarra.
• An incentive is proposed in the General Budget Law of 2024 for those obliged to pay in the energy sector to access it by making strategic investments from January 1, 2024.
• In addition, the application of the Temporary Solidarity Tax on Large Fortunes is extended until property taxation in the Autonomous Communities is reviewed, linked to the reform of the regional financing system.

Discounts on multi-trip tickets and tickets for urban and interurban public transport in 2024

• The subsidy for a 30% reduction in the price of multi-trip tickets and tickets for urban and interurban public transport nationwide is extended for a further 12 months. This measure requires the commitment of the autonomous communities and local entities to implement and complement additional discounts to reduce, at least by half, the cost of land transportation services under their jurisdiction for regular travelers.
• In the Canary Islands and the Balearic Islands, public transport will continue to be free for regular travelers in 2024.
• The State will allocate up to 660 million euros to cover part of the reduction, while regional and local administrations must finance the remaining percentage with their own budgets, guaranteeing at least a 20% discount between January 1 and December 31, 2024.
• Free and discounts on Renfe services and state-owned bus lines are extended for another year, including 50% discounts on Avant passes.

Suspension of evictions and releases

• The suspension of evictions and evictions for vulnerable households without a housing alternative is extended until December 31, 2024.
• In addition, the possibility of requesting compensation from the lessor or owner is contemplated until January 31, 2025.

Housing Law

• Establishment of a maximum annual increase of 3% in rental contracts in force from January 1, 2024 to December 31.
• Mandate to the National Institute of Statistics (INE) to define, before December 31, 2024, a new reference index that avoids disproportionate increases in the rent of housing lease contracts.
• Implementation of improvements in the eviction procedure that may affect the habitual residence of vulnerable households.
• Support to public and private developers for the construction of affordable housing through the creation of a line of guarantees backed by the State, aimed at financing the increase in the stock of housing for social rental or at an affordable price, as well as to improve existing ones.