Unemployed Exempt from Income Tax Declaration

The government has officially published the royal decree-law known as the 'social shield' in the Official State Gazette (BOE). This legislation introduces major changes for unemployed citizens regarding their tax obligations. Specifically, the text removes the requirement for the unemployed to file income tax returns, a measure that was set to take effect in 2026.

In addition to tax exemptions, the decree addresses labor matters. It confirms the extension of the current Minimum Interprofessional Wage (SMI) for 2025. This decision comes while the government and social partners continue negotiating the increase scheduled for 2026. The publication of this decree-law consolidates a series of social protection measures, which also include the revaluation of pensions, aimed at supporting vulnerable groups in the current economic context.

The Official State Gazette (BOE) has published the royal decree-law that eliminates the obligation for unemployed individuals to file income tax returns. This measure was scheduled to enter into force in 2026 but has now been suppressed by the new legislation. The decision is part of the broader 'social shield' package approved by the Council of Ministers.

This tax exemption represents a significant administrative relief for those currently seeking employment. By removing this obligation, the government aims to reduce the bureaucratic burden on citizens facing financial difficulties. The measure highlights the focus of the new legislation on social protection.

The decree-law also addresses the status of the Minimum Interprofessional Wage (SMI). The text publishes the extension of the 2025 SMI, maintaining the current figures while the negotiation regarding its increase for 2026 is concluded. This ensures stability for minimum wage earners in the immediate future.

The government continues to work on the negotiation process for the 2026 update. The publication of the extension serves as a provisional measure to guarantee legal certainty until the new amount for the following year is officially established.

The publication of this decree-law consolidates the government's 'social shield' strategy. This legal text aggregates several social measures of high impact, designed to protect the most vulnerable sectors of society. Alongside the tax and wage measures, the decree also includes the revaluation of pensions.

The Council of Ministers approved these measures the day before their publication in the BOE. The rapid publication underscores the urgency attributed to these social protections. The combination of tax exemptions and labor measures defines the scope of this legislative package.