Overview
- The new measure grants a deduction of up to €591 that fully shields incomes at the 2026 minimum wage of €17,094 and declines progressively up to €20,000.
- The government will include the change in a royal decree‑law tied to recent flood relief, formalizing its application for the 2026 tax year.
- Employers will apply the deduction automatically through monthly withholdings, and it will appear as a specific line in the 2026 tax return draft filed in spring 2027.
- Finance technicians project several million additional beneficiaries, with reporting noting that nearly 3 million people may be prompted to file to claim the relief.
- Separately, a 2022 withholding rule change for earnings of €22,000 to €35,200 may leave some filers owing roughly €400–€900 when settling the 2026 return.