v3.26.1
Tax matters (Tables)
 12 Months Ended
Dec. 31, 2025
Major components of tax expense (income) [abstract]  
Schedule of reconciliation of income tax expense
The reconciliation of the income tax expense calculated at the tax rate applicable in Spain (30%) to the income tax expense recognised and the detail of the effective tax rate are as follows:
EUR million
202520242023
Consolidated profit (loss) before tax:
From continuing operations18,68117,347 15,005 
From discontinued operations1,9501,680 1,454 
20,63119,027 16,459 
Income tax at tax rate applicable in Spain (30%)
6,1895,708 4,938 
By the effect of application of the various tax rates applicable in each countryA
(103)115 (100)
Of which:
Brazil264413 198 
United Kingdom(42)(53)(51)
United States(60)(25)(28)
Chile(36)(33)(28)
Poland(224)(183)(164)
Effect of profit or loss of associates and joint ventures(207)(213)(184)
USA electric vehicle leasing incentives(203)(258)(259)
Global minimum tax Pillar Two614 — 
Effect of reassessment of deferred taxes(101)68 — 
Permanent differences
and other
(450)(151)(119)
Income tax5,1315,283 4,276 
Effective tax rate24.87%27.77%25.98%
Of which:
Continuing operations4,7234,844 3,880 
Discontinued operations
(Note 37)
408439 396 
Of which:
Current taxes5,6664,855 5,568 
Deferred taxes(535)428 (1,292)
Income tax (receipts)/payments4,9545,880 5,214 
A.Calculated by applying the difference between the tax rate applicable in Spain and the tax rate applicable in each jurisdiction to the profit or loss contributed to the Group by the entities which operate in each jurisdiction.
Schedule of tax recognized in equity
In addition to the income tax recognised in the consolidated income statement, the Group recognised the following amounts in consolidated equity in 2025, 2024 and 2023:
EUR million
202520242023
Other comprehensive income
Items not reclassified to profit or loss115 85 358 
Actuarial gains or (-) losses on defined benefit pension plans63 172 302 
Changes in the fair value of equity instruments measured at fair value through other comprehensive income4 (4)20 
Financial liabilities at fair value with changes in results attributable to changes in credit risk48 (83)36 
Items that may be reclassified to profit or loss(440)54 (919)
Cash flow hedges(207)(205)(732)
Changes in the fair value of debt instruments through other comprehensive income(204)261 (214)
Hedging instruments (items not designated)3 — — 
Non-current assets held for sale(32)— — 
Other recognised income and expense of investments in subsidiaries, joint ventures and associates— (2)27 
Total(325)139 (561)
Schedule of deferred tax assets and liabilities
The detail of deferred tax assets, by classification as monetizable or non-monetizable assets, and of deferred tax liabilities at 31 December 2025, 2024 and 2023 is as follows:
EUR million
202520242023
MonetizableA
Other
MonetizableA
Other
MonetizableA
Other
Tax assets10,725 8,219 10,309 8,861 11,099 9,668 
Tax losses and tax credits— 2,354 — 2,367 — 2,393 
Temporary differences10,725 5,865 10,309 6,494 11,099 7,275 
Of which:
Non-deductible provisions— 1,970 — 1,784 — 1,965 
Valuation of financial instruments— 810 — 1,486 — 1,543 
Loan losses8,471 1,341 7,880 1,103 8,248 1,577 
Pensions2,254 426 2,429 423 2,851 665 
Valuation of tangible and intangible assets— 832 — 885 — 1,060 
Tax liabilities— 5,904 — 6,276 — 6,086 
Temporary differences— 5,904 — 6,276 — 6,086 
Of which:
Valuation of financial instruments— 1,980 — 2,412 — 2,059 
Valuation of tangible and intangible assets— 2,714 — 2,797 — 2,594 
Investments in Group companies— 427 — 403 — 378 
A.In 2023, the Spanish Economic Administrative Court ruled that in 2017 the requirements for the conversion of part of the monetizable assets of Popular Group into a credit against the Tax Administration were met, allowing the conversion to EUR 995 million. Banco Santander was refunded without impact on results. The favourable Economic Administrative Court decision was declared harmful to the public interests and challenged at the National Appellate Court by the Tax Administration. The estimation of this appeal, which is pending at the National Appellate Court, would imply that Grupo Santander should repay the amount refunded and would, once again, credit these monetizable assets with no impact on results except for late payment interests. However, it is considered that there are strong defense arguments in relation to this appeal.
Schedule of changes in deferred tax assets and liabilities
The changes in Tax assets - Deferred and Tax liabilities - Deferred in the last three years were as follows:
EUR million
Balance at 1 January 2025(Charge)/Credit to incomeForeign currency balance translation differences and other items(Charge)/Credit to asset and liability valuation adjustmentsReclassification no-current asset held for saleAcquisition for the year (net)Balance at 31 December 2025
Deferred tax assets19,170 1,107 (102)(132)(1,130)31 18,944 
Tax losses and tax credits2,367 82 (107)— — 12 2,354 
Temporary differences16,803 1,025 5 (132)(1,130)19 16,590 
Of which monetizable10,309 455 (39)— — 10,725 
Deferred tax liabilities(6,276)(572)108 (232)1,064 — (5,904)
Temporary differences(6,276)(572)108 (232)1,064 4 (5,904)
12,894 535 6 (364)(66)31 13,040 
EUR million
Balance at 1 January 2024(Charge)/Credit to incomeForeign currency balance translation differences and other items(Charge)/Credit to asset and liability valuation adjustmentsAcquisition for the year (net)Balance at 31 December 2024
Deferred tax assets20,767 119 (1,670)(41)(5)19,170 
Tax losses and tax credits2,393 114 (139)— (1)2,367 
Temporary differences18,374 5 (1,531)(41)(4)16,803 
Of which monetizable11,099 147 (937)— — 10,309 
Deferred tax liabilities(6,086)(547)142 215 — (6,276)
Temporary differences(6,086)(547)142 215 — (6,276)
14,681 (428)(1,528)174 (5)12,894 
EUR million
Balance at 1 January 2023(Charge)/Credit to incomeForeign currency balance translation differences and other items(Charge)/Credit to asset and liability valuation adjustmentsAcquisition for the year (net)Balance at 31 December 2023
Deferred tax assets20,787 629 (130)(422)(97)20,767 
Tax losses and tax credits1,778 392 224 — (1)2,393 
Temporary differences19,009 237 (354)(422)(96)18,374 
Of which monetizable10,660 1,232 (787)— (6)11,099 
Deferred tax liabilities(6,428)663 3 (338)14 (6,086)
Temporary differences(6,428)663 3 (338)14 (6,086)
14,359 1,292 (127)(760)(83)14,681