July begins with several key issues to bear in mind from an accounting, tax and strategic perspective. On the one hand, the end of the first half of the year offers companies an opportunity to assess their financial situation and adjust their roadmap for the second half. On the other hand, various tax measures remain in force which can improve a company’s tax position, particularly with regard to investment and estate planning.
For this reason, and in view of the approaching mid-year closing, we want to recap what measures from 2024 remain in place and highlight the main developments to consider. In this alert, we explore each point in detail:
Tax measures in force since 2024
Thanks to Royal Decree-Law 4/2024, a number of measures have been implemented with the sole aim of easing the burden on businesses like yours. In an economic and social context marked by uncertainty and global tensions, these measures aim to protect financial stability, encourage investment and support competitiveness, thereby enabling companies to adapt to the current market challenges.
With many of these still in force in July 2025, it is essential for companies to understand their scope in order to plan confidently for the mid-year close and the rest of the fiscal year. Key examples include:
- Enhanced capitalisation reserve, a useful tool to strengthen business solvency and reduce the Corporate Income Tax base.
- Accelerated depreciation for investments in sustainable mobility, enabling companies to access fast-track deductions.
Corporate Income Tax updates for 2025
With the tax year-end just around the corner, it is essential to consider the updates to Corporate Income Tax. Several changes introduced for the 2025 fiscal year will have a direct impact on tax planning, particularly for small and medium-sized enterprises, supporting investment, job creation and growth. Key updates include:
- Capitalisation reserve improvement: For tax years starting in 2025, the deduction rate on the tax base increases to 20%. If the company increases its average workforce, this deduction may rise to 30%, depending on employment growth.
- New reduced tax rates:
- Microenterprises (with turnover under €1M) will be taxed at 21% on the first €50,000 of taxable income, and 22% on the remainder.
- SMEs (turnover under €10M) will be taxed at 24% in 2025, with progressive reductions down to 20% by 2029.
- More flexible limits for offsetting tax losses:
- Companies with turnover below €20 million may offset up to 70% of the taxable base.
- Larger companies will face more restrictive limits, depending on turnover.
- Increased deductions for donations:
- The general deduction rises from 35% to 40%.
- In the case of recurring donations, the deduction may reach 50%, capped at 15% of the tax base.
These measures allow for a lower effective tax burden and promote reinvestment of profits, though they also bring added complexity to tax compliance. Timely assessment of their impact and applicability is essential to optimise your company’s tax position.
Regional reduction in Inheritance and Gift Tax
Although applied at regional level, certain fiscal developments should not be overlooked—such as Law 2/2025 in the Community of Madrid, which has introduced a major reduction in Inheritance and Gift Tax.
Among the most noteworthy updates:
- The relief for Group III relatives (siblings, uncles/aunts, nieces/nephews) increases from 25% to 50%.
- A 100% relief is granted on occasional gifts between private individuals, provided they do not exceed €1,000.
This reform improves deduction coefficients and extends relief to more groups, particularly reinforcing incentives for the transfer of family businesses and entrepreneurial assets. It represents a valuable opportunity for businesses and individuals to review their asset structures and anticipate succession planning strategies, supporting more effective tax and estate management in the corporate sphere.In short, this point in the year is key to reviewing and adapting your tax and accounting strategy—taking full advantage of existing measures and any developments that may directly affect your business.
If you need support to assess these changes or to prepare your mid-year tax review, at LEIALTA we are here to help you make the most of available tax benefits and plan the remainder of the fiscal year with confidence and efficiency.
