If you prefer to always view the website in English, please click here.

What will be the electricity VAT rate in Spain for 2025?

Let’s see the percentage of taxes applied to electricity bills in Spain, as well as the concepts of VAT, IVPEE, and IEE.

How much taxes will be paid on electricity in Spain in 2025?

A large part of what you pay on your electricity bill is tax, namely VAT and the special tax on electricity.

There is also a third tax on electricity production which, although it does not end up on your bill, ends up impacting the cost of electricity. Let's look at each of them individually.

 

VAT on electricity

VAT is Value Added Tax. It is a tax on consumption that exists in many countries, including Spain. It forms the basis of the Spanish indirect taxation system. It was introduced in 1986 and reformed in 1992 to bring it into line with the European single market.

 

What is the VAT on electricity?

Starting 1 January 2025, the VAT rate for electricity returns to the general rate of 21%, after being temporarily reduced to alleviate consumer bills.

 

When does the increase in VAT on electricity start to be applied?

All bills issued from 1 January 2025 will include a 21% VAT rate, even if the consumption corresponds to 2024.

It’s worth noting that electricity retailers do not profit from this tax; they act as collectors on behalf of governmental authorities.

 

 

The Different VAT Rates

In Spain, VAT is divided into three types*:

  • General VAT: this is a 21% tax. Most products and services fall into this category.
  • Reduced VAT: 10%.
  • Super-reduced VAT: 4%.

*0% and 5% are also applied to certain products and/or services.

Before June 2021, electricity VAT was 21%. In 2025, the government will reinstate this rate after temporarily reducing it to alleviate the impact of high electricity prices.

This places Spain among EU countries with the highest VAT rates on electricity consumption, alongside Hungary (27%), Croatia (25%), Denmark (25%), and Sweden (25%).

On the other hand, Greece applies 6%, Malta 5%, Italy 10%, Ireland 13.5%, and Luxembourg 8%. In Portugal, the VAT rate is 6% for the first 100 kWh of consumption and increases to 23% thereafter.

In the case of France, there are two types of VAT: The reduced rate of 5.5% is applied to the fixed bill items (down payment and subscription fee), while the general 20% is applied to the variable item (consumption).

VAT increases on electricity until 2025

Historically, VAT on electricity was 21%, but in June 2021 the government lowered it to 10%, and later, starting 1 July 2022, lowered it again to 5%. In 2024, there was an increase, and starting on 1 January, a 10% rate was applied. An expiry date was also announced: on 1 January, 2025, it will go back to the general rate of 21%.

However, these reductions had 2 conditions:

  • They were only for contracted capacities of up to 10 kW, whether individuals or companies. The vast majority of Spanish homes have a contracted power of less than 10 kW.
  • The price of electricity in the wholesale market (where retailers buy energy to sell to their customers) of the calendar month prior to the last billing day must be above €45/MWh.

Since the implementation of these measures, the average monthly price in the wholesale market has consistently remained above €45/MWh. In February 2024, the average monthly price dropped below €45/MWh, triggering a VAT increase to 21% for March billing. The same happened in April, May, and June.

However, in June 2024, the average electricity price on the wholesale market rose again above €45/MWh. Therefore, the VAT rate returned to 10% for bills where the last day of the billing period fell in July 2024. This alternation continued throughout 2024.

From 1 January 2025, all bills will include a VAT rate of 21%.

 

Special tax on electricity in 2025

The special tax on electricity (IEE), also known as electricity tax, is a tax on the cost of electricity production, charged at 5.113% of the amount of the consumption and power capacity. To calculate it, we must add the amounts of the electricity consumption and of the power capacity contracted. It should be noted that this tax is calculated before the application of VAT. Any homes, business premises and spaces that have contracted an electricity supply point pay it, regardless of whether they consume electricity or not.

This tax was approved in 1992, through Law 38/1992. Originally it was called specific cost allocated to coal mining, because at first it was created as a measure to support mining.

In September 2021, this tax was reduced to 0.5% by Royal Decree-Law 17/2021. This reduction was extended until, with Royal Decree-Law 8/2023, the rate of 2.5% was established that will apply from 1 January to 31 March 2024. Subsequently, it will undergo another change to 3.8% until 30 June, 2024. Finally, starting in July 2024, the normal rate of 5.113% was reinstated.

 

Special tax on electricity generation in 2025

The Tax on Electricity Production (IVPEE) consists of a 7% tax levied on the production of electricity and was created in December 2012 through Law 15/2012. The main purpose is to contribute to sustainability with the proceeds and minimise the impact that electricity production has on the environment.

It applies to any building, regardless of the energy source, the dimensions or profit from operations. This tax is aimed at the producer.

It is calculated without including IVA, in other words, based on the gross inflows of income that are generated during the production of electricity and its inclusion in the electricity system, received or to be received by the taxpayer.

No other country in our vicinity has such a tax on electricity supply.

In June 2021 the government agreed to suspend this tax from 1 July 2021. Royal Decree-Law 8/2023 set a 3.5% rate from 1 January to 31 March 2024. From 1 April to 30 June, the rate increased to 5.25%. Starting in July 2024, the standard 7% rate was reinstated.

Total taxes on the electricity bill

As mentioned above, taxes depend on consumption and power. Approximately, we can say that they account for a third of the bill.

Comparison of Electricity and Gas Tariffs

You don't need to adapt to Endesa's tariffs because they adapt to you. If you go to our catalogue you can compare the different tariffs for yourself. Or if you prefer, you can answer a few questions and we will take care of comparing all the different electricity and gas tariffs and then make a customised recommendation.

Do you want to see all our offers?

Spend a minute to find the product which best adapts to you:

{{firstStep.title}}

We are finding the right energy for you...

We are finding the right energy for you...

advise icon go to the advise Facebook icon go to Facebook Twitter icon go to Twitter Youtube icon go to Youtube Messenger icon go to Messenger Linkedin icon go to Linkedin Instagram icon go to Instagram Shared Link icon Go to the shared link Checkmark Success icon Checkmark Success down arrow icon down arrow Previous Go to previous Next Go to the next close icon close add icon add up arrow icon up arrow oblique arrow icon look obliquely Arrow down icon Arrow down search engine icon search search engine icon search share icon share filter icon filter email icon send mail email icon email phone icon phone fax icon fac print icon print play icon play user icon go to the user section error icon an error has occurred info icon information thumb up icon like thumb up icon like thumb down icon don't like thumb down icon don't like clock icon Clock Lamp icon Lamp List icon List Map icon Go to the map Phone icon Phone Emergency icon Emergency Pause icon Pause Play icon Play Logout icon Sign off Phone icon Phone Download icon An icon representing a download Chat icon An icon representing a chat
go back icon go back in navigation number 50 icon go to product Tempo Happy 50 Horas calendar icon go to product Tempo Happy Día companies icon go to the business segment gas icon go to gas product catalog rising sun icon go to Tempo Verde-Renewable Energy product home icon go to the household segment 24 hours icon go to One Luz product electricity icon go to Luz's product catalog electricity and gas icon go to the Luz + Gas product catalog moon icon go to product One night light monkey wrench icon go to breakdowns and repairs sun icon go to Tempo Solar product clock icon go to Tempo Happy products 2 hour clock icon go to Tempo Happy 2 Hours product 24 hours icon go to product One Luz number 50 icon go to product Tempo Happy 50 Hours Medium Voltage power line See product catalog with electricity consumption from € 36,000 to € 360,000 / year High Voltage power line See catalog of products with electricity consumption more than € 360,000 / year company icon go to the business segment calendar icon go to product Tempo Happy Day Property management firms icon go to the Property management firms DarkSite icon DarkSite icon light bulb icon See product catalog with electricity consumption less than € 6,000 / year electricity and gas icon go to the Electricity+ Gas Products catalog electricity icon go to the electrical products catalog email icon email contact fax icon fax contact Low Pressure gas icon see catalog of gas products with consumption of less than € 6,000 / year High Pressure gas icon see catalog of gas products with consumption from € 6,000 to € 240,000 / year Medium Pressure gas icon see catalog of gas products with consumption of more than € 240,000 / year gas icon go to gas product catalog Enel icon go to the enel website heater icon heater maintenance service heater maintenance icon go to maintenance service OKGas Heater home icon go to the household segment pressure cooker icon pressure cooker monkey wrench icon go to breakdowns and repairs Medium Voltage power line icon see catalog of electricity products with consumption from € 6,000 to € 36,000 / year moon icon go to product One Night Light sphere icon go to personal website phone icon telephone contact rising sun icon go to Tempo Verde-Renewable Energy product solar panel icon go to photovoltaic solar energy clock icon go to Tempo Happy products black handyman icon with thumb down selected the reaction "I don't like it" little hand icon with thumb down select the reaction "I don't like it" black hand icon with thumb up selected the "like" reaction little hand icon with thumb up select the "like" reaction
Añadir otro equipo eléctrico Lorem ipsum dolor sit amet, consectetur adipisicing elit. Eliminar equipo eléctrico Lorem ipsum dolor sit amet, consectetur adipisicing elit. Aspiradora Lorem ipsum dolor sit amet, consectetur adipisicing elit. Horno Lorem ipsum dolor sit amet, consectetur adipisicing elit. Lavadora Lorem ipsum dolor sit amet, consectetur adipisicing elit. Lavavajillas Lorem ipsum dolor sit amet, consectetur adipisicing elit. Microondas Lorem ipsum dolor sit amet, consectetur adipisicing elit. Plancha Lorem ipsum dolor sit amet, consectetur adipisicing elit. Punto de recarga vehículo eléctrico Lorem ipsum dolor sit amet, consectetur adipisicing elit. Radiador eléctrico Lorem ipsum dolor sit amet, consectetur adipisicing elit. Secadora Lorem ipsum dolor sit amet, consectetur adipisicing elit. Split Aire Acondicionado Lorem ipsum dolor sit amet, consectetur adipisicing elit. Termo Lorem ipsum dolor sit amet, consectetur adipisicing elit. Tostador Lorem ipsum dolor sit amet, consectetur adipisicing elit. Vitrocerámica Lorem ipsum dolor sit amet, consectetur adipisicing elit. Power edit Lorem ipsum dolor sit amet, consectetur adipisicing elit. Map marker Lorem ipsum dolor sit amet, consectetur adipisicing elit.