Self-employed individuals will continue to be able to tax under objective estimation for income tax and under the simplified VAT regime in 2027, with the same conditions as this year. The order from the Ministry of Finance has been published in the BOE.
Self-employed individuals will be able to continue taxing under the objective estimation method for income tax and under the special simplified VAT regime in 2027. According to La Razón, the Ministry of Finance has extended the current thresholds for this year through a ministerial order published in the BOE.
The regulation maintains the amount of the signs, indices, or modules for income tax and the 5% reduction on net income. It also extends the modules and instructions for the simplified VAT declaration. The threshold for opting for modules remains at €250,000 in annual turnover, a figure that the 2015 reform temporarily raised from the initial €150,000 and which has been extended since then.
On the other hand, for the agricultural sector, the Ministry has set an exceptional reduction of 10% on the net income of all agricultural activities for the 2026 fiscal year. Additionally, there is a 35% reduction for the purchase of agricultural diesel and a 15% reduction for the purchase of fertilizers. According to calculations from the Ministry of Agriculture, these measures represent a reduction in the taxable base of income tax of about €860 million and benefit 800,000 farmers and ranchers who tax under objective estimation.
The association ATA views the extension positively, although it calls for further progress. Its representatives state:
“three years waiting for the Treasury to fulfill its commitments to the self-employed”
Among those commitments, the association cites greater legal certainty for deductions and the franchised VAT regime. In March, the Congress approved, with the support of PSOE and Sumar, a bill urging the Government to exempt self-employed individuals who invoice less than €85,000 a year from charging VAT. Until now, the Government had rejected applying that franchised VAT, considering that the modules already offer flexibility to small business owners.
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