Treasury freezes tax modules for freelancers and SMEs for the 2027 fiscal year

The Ministry of Finance has set the modules for the objective estimation of Personal Income Tax (IRPF) and the special simplified VAT regime for 2027 through Order HAC/1161/2026, of November 4, published in the Official State Gazette (BOE) no. 276, on Thursday, November 5, 2026 (Sec. I, page 148173; official reference BOE-A-2026-23174). The regulation maintains the amounts of the signs, indices, and modules, as well as their application instructions, and preserves the structure of Order HAC/1425/2025, of December 9, which regulated the 2026 fiscal year. The order bears the signature of the Minister of Finance, Arcadi España García, and takes effect for the year 2027.

The regulation is issued in compliance with the mandates of Article 32 of the IRPF Regulations, approved by Royal Decree 439/2007, of March 30, and Article 37 of the VAT Regulations, approved by Royal Decree 1624/1992, of December 29, which attribute to the head of Finance the determination of the activities covered by both regimes. Article 4 of the order approves the signs, indices, and modules applicable during 2027, which are detailed in Annexes I, II, and III of the text.

Frozen modules and general 5 percent reduction

The order does not revise the amounts: it maintains the IRPF modules and also, for VAT, the modules and instructions of the simplified regime in force in the immediately preceding year. The catalog of included activities ranges from independent livestock farming and agricultural, forestry, and processing activities to retail trade, hospitality, road transport, repair shops, hairdressing, and education, identified by their Economic Activities Tax (IAE) heading.

The main novelty of general scope appears in the first additional provision: taxpayers who determine their net yield by objective estimation may reduce the net yield from modules obtained in 2027 by 5 percent. This reduction will also apply to the fractional payments of 2027.

Waivers until December 31 and exclusion limits

Self-employed workers who wish to waive the method or revoke a previous waiver for 2027 will have a deadline from the day following the publication of the order until December 31, 2026, both for IRPF (Article 5) and the simplified VAT regime (Article 6). The waiver will be understood as having been made if the fractional payment or the first-quarter tax return is submitted within the deadline in the form provided for the general regime.

The limits for being excluded from the system are maintained and specified in Article 3:

• 250,000 euros annual revenue volume for the combined agricultural, livestock, and forestry activities.
• The general income limit and the volume of purchases of goods and services refer to the provisions for 2027 in Article 31 of Law 35/2006 (Personal Income Tax/IRPF) and Article 122 of Law 37/1992 (VAT).
• Specific magnitudes by number of employees, ranging from 3 to 6 workers depending on the activity (bakery and pastry, 6; retail trade of fruits and vegetables, 5; lingerie and corsetry, 3).

Agriculture and livestock: exceptional measures for the 2026 fiscal year

The fourth additional provision maintains a relief package for the primary sector, although referring to the 2026 tax period and not 2027. Agricultural and livestock holdings under the objective estimation system may apply these reductions to the previous net yield:

• Reduction of 35 percent of the acquisition price of agricultural diesel documented by invoice.
• Reduction of 15 percent of the acquisition price of fertilizers.
• Increase to 10 percent of the general reduction of the net yield of modules for the activities in Annex I of Order HAC/1425/2025.

Both input deductions only apply to acquisitions made in 2026 and documented in invoices issued during that period.

Specific indices and livestock affected by sectoral crises

The second additional provision sets its own net yield indices for 2027 in three agricultural activities, replacing those in Annex I: table grapes (0.32), flowers and ornamental plants (0.32), and tobacco (0.26). Additionally, the third additional provision reduces the percentages for calculating the accrued quota for current operations under the simplified VAT regime in livestock activities affected by sectoral crises: breeding, keeping, and fattening services for poultry (0.06625) and beekeeping (0.070).

The text completes the framework with common rules in Annex III, including the possibility of requesting a reduction of modules from the State Tax Administration Agency due to fires, floods, sinkholes, or serious breakdowns of industrial equipment, within a thirty-day period, and the submission of the tax return-settlement for the last quarter of the year during the first thirty calendar days of January.

The regulation enters into force the day following its publication in the Official State Gazette, with effects for 2027, meaning taxpayers have only a few weeks to decide whether to remain in the module system or switch to direct estimation.

Source: Official State Gazette, no. 276, November 5, 2026, Sec. I. General Provisions, p. 148173 (official reference: BOE-A-2026-23174).