Repsol wins stay of €120 million energy tax payment

The Spanish National Court (Audiencia Nacional) has granted a precautionary suspension regarding the collection of €120.3 million from Repsol. This amount corresponds to the 2024 temporary energy levy, a tax imposed by the Spanish government on energy companies with annual turnovers exceeding €1 billion.

The court's decision follows the fact that the State Attorney's Office did not oppose the company's request. However, the suspension is conditional: Repsol must provide a bank guarantee covering the principal, surcharges, and late interest for a period of two years while the legal appeal proceeds.

This ruling follows a previous decision by the same court in June, which suspended the collection of €152.4 million related to the 2023 energy levy. Repsol's shares rose by more than 2.5% following the announcement. The company has argued that the tax design is potentially confiscatory as it levies revenue regardless of actual profit margins.