On April 22, 2025, Provincial Law 2/2025, of April 9, was published in the BOB approving measures for the fiscal review of the tax system of the Historical Territory of Bizkaia, introducing significant tax changes affecting various taxes in the tax system of the Historical Territory of Bizkaia, which will come into force, in general (there are exceptions), on January 1, 2025.

This Provincial Law aims to address the following challenges: family, equality, work-life balance for women and young people; housing; social security for employment; green transition; and progressiveness and protection and promotion of the productive fabric.

To this end, it introduces certain relevant tax changes, including limiting the right to apply deductions for the purchase/rental of a primary residence for certain taxpayers, improvements to the tax regime for supplementary social security systems, the introduction of a new additional tax on extraordinary profits for certain companies, and the elimination of the limit on offsetting negative tax bases for micro and small businesses. In addition, the scale of the taxable savings base is modified to nine brackets, which also affects asset-holding companies.

Our tax team has prepared the following document detailing the most relevant amendments contained in the aforementioned Provincial Regulation.