Spain’s Official State Gazette (BOE) has published the Ministry of Finance order regulating the flat-rate assessment system for Personal Income Tax (IRPF) for the 2026 tax year, along with the simplified special regime for Value Added Tax (VAT).

The regulation defines the economic activities eligible for this taxation method, which mainly include agriculture and livestock farming, certain agri-food activities, transport services and various retail trade sectors.

The order confirms the continuation of a 5% reduction on the net income calculated under the flat-rate scheme. This tax relief, which has already been applied in previous years —namely 2020, 2021, 2022 and 2024— will again benefit self-employed workers who calculate their taxable income using this objective estimation method.

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2026 Personal Income Tax Order Published, Maintaining a 5% Reduction Under the Flat-Rate Scheme

Regarding VAT, the regulation also maintains the existing modules for 2026, as well as the instructions applicable under the simplified special regime used in the previous tax year. This measure ensures continuity and predictability for professionals and self-employed individuals operating under this system.

The publication of this order offers legal certainty for taxpayers using the flat-rate scheme and supports fiscal planning for thousands of self-employed workers, particularly in key sectors such as agriculture, transport and small retail businesses.