Since last April 3, 2025, the Law on the Efficiency of Justice has come into force, bringing with it a significant change that directly affects those who are going through such delicate situations as dismissal, an accident, or a divorce. In this new legal scenario, there is a firm commitment to Mediation as the main way to resolve conflicts, leaving behind long judicial processes and, what is more interesting, reducing the tax burden on certain compensations.
From the International Mediation School, we want to share these with you important legislative developments, which represent a true revolution in both tax matters and access to more humane, faster and more effective solutions.
Lower taxes and more solutions without the need for courts
The new legislation establishes that A court ruling will not be necessary for certain compensation to be exempt from personal income tax.. This means a great economic savings and a major agility in procedures, promoting out-of-court settlements through services such as mediation.
Severance pay
Until now, only compensation for unfair dismissal recognized by a court was exempt from personal income tax, up to a maximum of €180,000. With the entry into force of this law, the requirement for judicial intervention is eliminated. It is sufficient that the amount is fixed by the Mediation, Arbitration and Conciliation Service (SMAC) or other administrative body competent to be exempt from the tax.
This change benefits workers and companies, who can now reach agreements quickly, securely, and with tax incentives.
Alimony in divorces
Another key change occurs in the cases of separation or divorceUntil now, for alimony payments to be exempt, a judge had to determine their amount. However, with this new regulation, It is sufficient that the agreement be formalized before a Notary or a Lawyer of the Administration of Justice (LAJ).
This means that The children will not pay taxes on the amounts received If these alternative legal means are used, making the family breakdown process more accessible and humane.
Compensation for accidents
The new law also clarifies and strengthens tax exemption of the compensation that insurers pay for physical or psychological damage resulting from accidentsIn this way, victims receive full compensation without having to allocate part of it to taxes, a measure that is both fair and necessary.
Additional advantages of mediation
Beyond the obvious tax benefits, Mediation is consolidated as the preferred way to resolve conflicts quickly, efficiently, and respectfully. The new legislation not only financially rewards those who choose this option, but also recognizes its key role in easing the judicial system's congestion.
Speed
Mediation avoids the long waits associated with ordinary court proceedings. In a matter of weeks—and sometimes even days—a mutually satisfactory agreement can be reached.
Efficiency
Mediation promotes dialogue, reduces confrontation, and improves future relationships between the parties. A willingly reached agreement is stronger, more lasting, and less contentious.
Online mediation
Thanks to the International Mediation School, it is now possible to access the service of online mediation, allowing disputes to be resolved from anywhere with complete convenience, privacy, and security. A perfect solution for people with busy schedules or who live in different cities.
Tax incentive
Financial savings are another of the great advantages of mediation. Not only are legal costs avoided, but The exemption from personal income tax in certain cases represents an additional reason to opt for this friendly and effective alternative..
General promotion of mediation
The Law on the Efficiency of Justice not only introduces technical improvements: strengthens mediation as an essential tool in our legal system, and we at the International School of Mediation celebrate it.
We firmly believe that mediation is a resource effective, humane and adapted to modern times, which places people at the center of the process, promoting voluntary, personalized agreements with real benefits.
How can you benefit from these changes?
If you are going through a work, family or accident-related conflict, It is the ideal time to opt for mediationThanks to this new legislation, you have at your disposal a fast, economical, and now also tax-advantageous to resolve your situation.
In the International Mediation School We are committed to disseminating these advances and training professionals who will lead the change toward more accessible and efficient justice.
Do you want to know how to make the most of mediation in your personal or professional situation? Contact us and find out how we can help you!
