Spain Maintains Stability in 2027 Tax Framework for IRPF and VAT Simplified Regimes

Context

The Orden HAC/1161/2026, published in the Boletín Oficial del Estado (BOE) on 5 November 2026, sets the regulatory framework for Spain's IRPF objective estimation method and VAT simplified regime for 2027. This annual order provides stability to small businesses by maintaining module values and application instructions largely unchanged from the previous year. The order's publication coincides with the opening of a critical opt-out window for taxpayers wishing to renounce these regimes.

The continued use of módulos—Spain's simplified tax estimation method—for IRPF and VAT reflects the government's commitment to predictable, standardized taxation for small businesses. This approach allows taxpayers to estimate their income and VAT liabilities based on sector-specific modules rather than detailed accounting. The stability in module structures from 2026 to 2027 provides regulatory certainty, reducing compliance burdens for taxpayers operating under these regimes.

What's Changing

The most significant policy development in this year's order concerns the agricultural and livestock sectors. For the 2026 tax period, these sectors benefit from an increased general reduction on net yield, elevated from 5% to 10%. This adjustment acknowledges the ongoing challenges faced by agricultural businesses, including elevated energy and input costs.

Agricultural Relief Provisions

Operators in agricultural and livestock activities are eligible for additional reductions:

• A 35% reduction on the acquisition price of agricultural diesel.
• A 15% reduction on the acquisition price of fertilizers.

These measures aim to mitigate the financial strain caused by high fuel and input costs, which have been persistent challenges for the sector. The elevated reduction on net yield, combined with specific deductions for key inputs, provides targeted relief to agricultural businesses.

VAT Simplified Regime

The VAT simplified regime modules and application instructions remain unchanged from 2026. This continuity provides regulatory stability for small businesses operating under this scheme, allowing them to continue filing VAT returns based on sector-specific modules without modifications.

Opt-Out Provisions

Taxpayers wishing to opt out of the objective estimation method for IRPF or the simplified VAT regime for tax year 2027 must act within a defined window. Renunciation is available from 6 November 2026 through 31 December 2026. Elections may be made via model 036 or implicitly by filing the first quarterly payment of 2027 under an alternative method. This deadline is operative immediately, as the opt-out window opened on the same date the order was published.

Implications for Small Businesses

The stability in module structures from 2026 to 2027 reduces compliance burdens for taxpayers operating under these regimes. Small businesses can continue to estimate their income and VAT liabilities based on standardized modules without the need for significant adjustments.

The targeted relief for agricultural and livestock sectors addresses specific challenges faced by these industries. The increased reduction on net yield, combined with deductions for key inputs, provides financial relief and acknowledges the sector's unique economic pressures.

Outlook / What to Watch

The immediate focus for taxpayers is the opt-out window, which remains open until 31 December 2026. Businesses considering alternative taxation methods must act within this period to ensure compliance with the new framework.

The stability in module structures from 2026 to 2027 suggests that further adjustments are unlikely in the near term. However, taxpayers should remain vigilant for any updates or additional guidance from the Agencia Tributaria regarding the application of these modules.