Electricity Prices in Spain: What Expats Need to Know for 2025
As the New Year begins, expats and residents in Spain are bracing for significant changes in their electricity bills, driven by a combination of tax increases and alterations in the social bonus scheme.
VAT Increase to 21%
Starting January 1, 2025, the Value Added Tax (VAT) on electricity in Spain has reverted to 21%, marking the end of a three-year period of reduced rates. This change follows a series of reductions aimed at alleviating the cost-of-living crisis, with VAT initially lowered to 10% in June 2021 and further reduced to 5% in July 2022.
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