Sánchez calls snap election as tax and social-security revenues hit historic high

Pedro Sánchez called a snap parliamentary election for November 29 after the Congress of Deputies overturned his housing decrees, which had been introduced in response to the Maricarmen eviction case. In his address, Sánchez also promoted the perceived success of the Spanish economy, despite criticism that growth figures are inflated by public spending and demographic factors. According to the Intervención General de la Administración del Estado (IGAE) data compiled by Funcas, total tax and social-security revenues reached a historic peak in 2025, marking a sizable increase over the prior year.

The bulk of this rise came from income-tax and payroll contributions, with notable gains in VAT, special taxes and corporate tax as well. Funcas warned that one outlet fiscal mix places too much burden on labour income, opposing long-standing EU and OECD advice to rebalance tax pressure. The surge is partly attributed to economic expansion, immigration, and inflation, but the lack of measures to offset inflationary effects may sustain higher revenues into 2026.