Details have been released by the Government to honour an election promise which gives a €400 tax rebate to every tax payer in Spain.

The plan will give a financial boost to families struggling with higher mortgage payments as well as the ever increasing cost of living.

Tax payers, pensioners and employees, will pay €200 less in July and over the following 6 months will receive the remaining €200 in monthly payments.

People who do not earn enough to pay tax will receive the sum as a credit.

Self employed people will receive the rebate over 3 instalments. A €200 reduction in their retentions in July, plus 2 €100 payments, one in October the second in December.