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Pensions to increase
As an ongoing inflation-tackling measure, Spain’s Council of Ministers has confirmed that contributory pensions will rise by 2.8 percent in 2025, benefiting 9.3 million pensioners. This represents an annual increase of €500 to the average pension (about €36 for each of the 14 payments).
Minimum pensions will also rise by around 6 percent , while pensions that include dependent spouses or widows with family members in their care will rise by 9.1 percent, the same percentage as the Minimum Vital Income and non-contributory pensions.
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Transport discount to continue
As anticipated, Spain’s Cabinet has also given the green light to keeping the transport discount for travellers for at least half of 2025, news The Local Spain covered recently.
This includes free tickets or discounted prices for buses, Cercanías commuter trains, Catalonia’s Rodalies rail network and mid-distance trains.
Protection measures for the most vulnerable
Spain’s Socialist government has also extended the ban on cutting off water, electricity and gas supplies for vulnerable consumers until December 31st 2025.
The government will also keep in place its bono social scheme which offers discounts on such utility bills, from 50 to 35 percent for vulnerable consumers to 65 and 57.5 percent for those who are really struggling.
Tax cuts for home renovations
Another scheme that will be extended until December 31st 2025 will be personal income tax deductions for energy efficient home renovations.
There are three types of deductions depending on the amount of consumption reduced by the renovation, ranging from 20 to 60 percent of the cost, with savings of between €5,000 and €15,000.
Tax cuts to buy an electric car
After much speculation, the Moves III programme for the purchase of an electric vehicle, a fuel cell vehicle or a charging station has been extended until June 30th 2025.
The 15 percent Personal Income Tax deduction when purchasing an electric vehicle has also been extended until the end of the year.