Finance
Spanish government extends energy windfall tax by decree
Published by Global Banking & Finance Review®
Posted on December 23, 2024
1 min readLast updated: January 27, 2026
Quick Summary
Spain extends its energy windfall tax to 2025, affecting large utilities and renewable investments. Parliamentary approval is required.
Spanish Government Extends Energy Windfall Tax to 2025
MADRID (Reuters) - The Spanish government has issued a decree extending a temporary tax on energy companies into 2025, Prime Minister Pedro Sanchez said on Monday, after lawmakers voted last week to eliminate it.
The decree enters into force on Jan. 1, but it will need to be confirmed by parliament within 30 days in order to remain valid throughout next year as the monirity government intends - which may prove difficult to achieve as its partners to the left and right are at odds on the issue.
Utilities have warned that extending the levy, of 1.2% for companies with a turnover of at least 1 billion euros ($1.04 billion), would jeopardise 30 billion euros in renewable energy investments.
($1 = 0.9607 euros)
(Reporting by Emma Pinedo and David Latona. Editing by Andrei Khalip)
Key Takeaways
- •Spanish government extends energy tax to 2025.
- •The decree requires parliamentary confirmation.
- •Utilities warn of impact on renewable investments.
- •Tax affects companies with €1 billion turnover.
- •Political challenges expected for decree approval.
Frequently Asked Questions about Spanish government extends energy windfall tax by decree
1What is the main topic?
The main topic is the extension of Spain's energy windfall tax until 2025 by government decree.
2Why is the tax controversial?
The tax is controversial as it may jeopardize €30 billion in renewable energy investments.
3What are the political challenges?
The minority government faces challenges as its partners are divided on the tax issue.
