Among the most relevant measures for La Palma is the extension during 2026 of the deduction in the income tax for people with habitual and effective residence on the island, a measure that gives continuity to the fiscal shield deployed after the eruption and that contributes to alleviate the economic burden of palm families and to revitalize the island economy. The measure, with effect from January 1, 2026, is estimated to benefit some 35,000 taxpayers. The regulation also includes a moratorium on loans from those affected by the eruption and an important social measure that affects farmers who received aid during the first years of cessation of activity, with the aim that it is not accounted for within the margin provided to justify the amounts corresponding to POSEI and thus avoid having to repay them.
It is also particularly important for the Autonomous Community of the Canary Islands to be able to allocate 100 million euros of its surpluses and excesses of financing pending application to aid mainly related to agriculture. These resources are in addition to the tools already in place and will allow us to continue attending to needs that remain open and to move forward in essential actions to complete the reconstruction of La Palma.
The Special Commissioner for the Reconstruction of La Palma, Héctor Izquierdo, stressed that “the approval of this Royal Decree-Law demonstrates that the reconstruction of La Palma remains a priority for the Government of Spain. The eruption ended, but its consequences did not, and that is why it is essential that the administrations continue to accompany the affected people until the recovery process is complete.” Izquierdo stressed that “the possibility of mobilizing an additional EUR 100 million for aid, along with the maintenance of the IRPF deduction and other measures, means providing resources and security to those who still need support and allows us to continue moving towards a reconstruction that leaves no one behind”.
Consultation here Royal Decree-Law 23/2026, of 8 September, adopting urgent fiscal and financial measures that contribute to the economic and social reconstruction of the island of La Palma, as well as measures aimed at promoting the execution of investments by the autonomous communities that have registered budgetary surpluses and outstanding financing surpluses from years prior to 2026.