Emergency fiscal measures in Navarra due to Middle East crisis: what companies and self-employed can request

Key data

Companies in Navarra with exposure to the Middle East crisis have access to tax relief from April 15, 2026, the date when the Foral Decree-Law 1/2026 entered into force. The regulation was approved by the Navarra Government as a matter of urgency, which gives it immediate effect without the need to go through the ordinary parliamentary process.

The decree enables the Foral Executive to articulate three types of measures on taxes specific to the Navarrese foral regime: deferrals, reductions and bonuses. The objective is to cushion the economic impact that instability in the Middle East is generating in the business fabric of the community, especially in SMEs and self-employed with international activity.

What does this regulation establish?

Foral Decree-Law 1/2026 introduces fiscal measures of an exceptional and urgent nature in the foral tax field of Navarra. By being approved as a decree-law, it does not require prior parliamentary processing, which allows its immediate application from the date of approval.

The measures enabled by the regulation are as follows:

• Deferrals in the payment of Navarrese foral taxes for affected taxpayers.
• Reductions in the base or quota of certain foral taxes.
• Bonuses applicable to foral taxes for those affected by the crisis.

The regulation does not set specific amounts, percentages or deadlines for each measure in the available text. The Foral Government is enabled to develop and articulate these measures specifically according to the evolution of the situation and the needs of the Navarrese business fabric.

It is relevant to note that Navarra has its own tax regime (foral regime), which allows it to adopt this type of measure autonomously with respect to the State's common tax system.

Economic and operational impact

The direct impact for eligible companies in Navarra is the possibility of reducing or deferring the foral tax burden during the period of impact from the Middle East crisis. This has practical consequences for cash flow and tax planning for 2026.

The main operational effects are:

• Improvement of short-term liquidity through deferrals: companies can defer payments of foral taxes without incurring surcharges or penalties, freeing up cash to cover urgent operating expenses.
• Reduction of the effective tax burden if reductions or bonuses are applied to the affected taxes.
• Lower financial pressure for SMEs and self-employed with contracts, suppliers or markets linked to the conflict zone.

The decree does not specify in the available text the specific foral taxes on which the measures will be applied nor the maximum amounts of deferral or reduction. It will be necessary to pay attention to the instructions and resolutions published by the Foral Treasury of Navarra to know the exact scope of each measure.

Who does it affect?

This regulation affects exclusively taxpayers subject to the foral tax regime of Navarra. Within that scope, the main recipients are:

• Companies in Navarra with supply chains that depend on suppliers or raw materials from the Middle East zone or routes affected by the conflict.
• Exporters in Navarra with markets or customers in the conflict region or in countries whose economy has been affected.
• Self-employed in Navarra whose economic activity is directly linked to international trade with the affected zone.
• SMEs in Navarra from sectors with exposure to the crisis: logistics, transport, energy, food, manufacturing industry with components imported from the region.
• Navarrese taxpayers in general who can prove an economic impact derived from the Middle East crisis.

Companies with tax domicile outside Navarra or subject to the State's common tax regime are not covered by this foral decree-law.

Practical example

A company in Navarra in the food sector that imports ingredients or products from Middle East countries has seen its supply chain interrupted since the start of the conflict. As a result, it has had to seek alternative suppliers at higher cost and has recorded a drop in income in the first quarter of 2026.

Thanks to Foral Decree-Law 1/2026, this company could request from the Foral Treasury of Navarra a deferral in the payment of its foral taxes corresponding to the 2026 tax year, thus avoiding having to face those payments at the time of greatest cash flow tension. Additionally, if the Foral Treasury develops reduction or bonus measures, it could benefit from a lower effective tax burden during the period of impact.

The same scheme applies to a self-employed person in Navarra who exported products to customers in the region and has seen their contracts cancelled or suspended: they could take advantage of the deferral measures to gain financial margin while reorienting their activity.

What should companies do now?

1. Evaluate your exposure to the Middle East crisis: Identify if your company has suppliers, customers, contracts or logistics routes affected by the conflict. Document the economic impact with concrete data (sales decline, cost overruns, cancelled orders).
2. Consult the Foral Treasury of Navarra: Contact the Foral Treasury to learn the exact procedure for requesting deferrals, reductions or bonuses enabled by Foral Decree-Law 1/2026. The regulation has been in force since April 15, 2026.
3. Prepare documentation that proves the impact: To request any tax relief measure, you will need to justify the impact. Gather contracts, invoices, communications with suppliers or customers and any evidence of economic impact.
4. Coordinate with your tax advisor: Since the specific measures (amounts, deadlines, affected taxes) will be developed by the Foral Government, maintain close communication with your advisor to act as soon as specific instructions are published.
5. Monitor development resolutions: The decree enables measures but does not detail them. Follow publications in the Official Bulletin of Navarra and communications from the Foral Treasury to learn the exact deadlines and conditions of each measure.