The budget execution summary released by the Budgetary Entity (EO), formerly known as the Directorate-General of the Budget (DGO), indicates an acceleration in tax revenue inflow, primarily due to companies submitting their corporate taxes earlier than in 2024.
As of May, cumulative revenue had increased by 13.1%, and with the revenue collected in June, the cumulative collection was 22% higher than the previous year.
The collection of 28,538.1 million euros in the first half of the year compares to the 23,388.4 million gathered in the same period of 2024.
The Budgetary Entity notes that tax revenue grows by 7.5% when excluding three effects: an extended payment period for VAT, deferred tax payments for corporate taxes in February 2024, and changes in the deadlines for corporate tax payments.
“Direct taxes recorded a year-on-year increase of 3,439.9 million euros (+42%), largely due to a positive trend in net corporate tax revenue, which rose by 2,653.1 million euros (+221.9%) compared to the same period,” the EO stated.
According to the entity overseeing the evolution of public accounts, “this variation in corporate tax primarily reflects the effect of the staggered deadlines for self-assessment payments between 2024 and 2025 — in 2024, this deadline was extended to July 15, whereas in 2025, it was set for June 30 — hence the net corporate tax revenue for June 2025 is not comparable to that of June 2024.”
Revenue from personal income tax increased by 800.9 million euros, a growth of 11.9%, which the EO states contributed to “the reduction in refunds by 387.6 million euros (-15.6%) compared to the same period.”
On the indirect taxes side, which includes VAT, the tax generating the most revenue for public accounts, the cumulative revenue growth was 11.2%, totaling 1,709.9 million euros.
This increase is explained “mainly by the positive performance of net VAT revenue,” which grew by 1,284.4 million euros, representing an 11.6% rise, bringing this tax’s collection to 12,361.6 million euros.
However, “if we disregard the effect of the VAT payment extension (307.3 million euros in June 2024 versus 344.4 million euros in June 2025), the revenue from this tax increases by 1,321.6 million euros (+11.6%) year-on-year,” the EO states.
The net revenue from the Tax on Petroleum and Energy Products (ISP) increased by 216.5 million euros up to June, reaching 1,863 million euros, a rise of 13.1% from the previous period.
The Tobacco Tax secured an increase of 126.6 million euros for the public coffers, growing by 20.3% year-on-year.
Considering all revenue gathered by public administrations—which includes, besides tax revenue, contributions to social protection systems and non-tax, non-contributory revenue such as fees and fines—the total effective revenue amounts to 58,285.8 million euros, growing 13.9% from January to June year-on-year.
