ANDALUSIA
The Moreno Bonilla administration announced a 100 percent reduction in the wealth tax. This move is expected to save the region more than 93 million euros by cutting imports. In parallel, there is talk of adjusting the territorial division of the personal income tax to shield residents from inflation, with a 4.3 percent rise in the first three income brackets. The same adjustment would raise the exempt amounts from the IRPF in the regional division by 4.3 percent, and the water law would be repealed.
MADRID
The Community of Madrid approved a half-point cut in all autonomous components of the IRPF along with reductions in inheritance and gift taxes. Additional deductions between siblings, uncles, and nieces within the territorial part of the income tax were announced, benefiting roughly 700,000 Madrid residents. A zero rate for new self-employed workers was also proclaimed.
GALICIA
Galicia plans an income tax reduction, retroactive to January 1, 2022, which would create noticeable savings for middle and low income earners earning under 35,000 euros. A 25 percent bonus, up to 50 percent of the wealth tax, would be introduced, doubling what is currently available.
MURCIA
The Murcia regional government approved a general deduction in the first four sections of the autonomous part of the personal income tax for incomes up to 60,000 euros. The decrease is set at 4.1 percent, aligned with wage trends nationwide. Murcian authorities estimate that about 330,000 residents will benefit, saving around eight million euros on their 2022 tax returns.
C. VALENCIAN
Valencia’s socialist leadership in Ximo Puig has targeted the territorial division of the personal income tax for middle-income earners up to 60,000 euros. Puig notes that 97.4 percent of Valencia taxpayers fall into this category. The initiative, which diverges from Pedro Sánchez’s national stance, does not focus on deflation but rather on a new regional rate. Puig projects total savings of 150 million euros for Valencia taxpayers, averaging about 111 euros per return. A 10 percent increase in the tax-free allowance will apply to all residents, while higher earners above 60,000 euros will continue their current tax obligations.
ASTURIA
The Principality has limited anticipated changes to the personal income tax, with only minor adjustments anticipated for the middle and lower income brackets.
NAVARRE
Navarre is not pursuing major tax changes but plans to enhance deductions within the autonomous portion of the personal income tax for middle and low incomes.
CASTILLA LA MANCHA
Castilla-La Mancha, led by Emiliano García-Page, is evaluating tax deductions and direct aid, though no formal statement has been issued yet. A state of the region discussion on October 4-5 may reveal forthcoming measures.
ARAGON
Aragon has seen discussions sparked by Valencia’s moves. The regional executive, chaired by Javier Lambán, has argued that fiscal policy should serve a broader national model and warned that the current financing system risks reducing public services due to escalating costs.
RIOJA
La Rioja will maintain its current personal income tax structure. Treasury Secretary Celso González stated there will be no deflation or changes to the inheritance tax, noting the region experiences relatively low fiscal pressure.
BALEARIC
In the Balearic Islands, the emphasis remains on targeted rather than broad tax relief. Finance authorities dismissed scenarios akin to Andalusia’s 100 percent wealth tax cut, arguing it would affect only a small share of taxpayers while not delivering broad benefits.
ESTREMADURA
Extremadura’s leadership envisions a future with tax reductions balanced by financing considerations. The latest remarks suggest a potential rethink on the financing model for communities seeking more resources, with concrete cuts already identified in several public services.
CANARY ISLANDS
The Canaries oppose a broad tax cut in favor of sector-specific support. The regional government advocates that taxes should remain secure while focusing on targeted relief measures.
CASTILE AND LEON
The Junta de Castilla y León has approved a modest cut in the minimum personal income tax rate from 9.5 percent to 9 percent for all taxpayers, a measure projected to have a visible impact on the budget by about 80 million.
CANTABRIA
Cantabria’s leadership has avoided sweeping changes for now, promising to consider limited, targeted tax relief for middle- and low-income groups as the week unfolds.
BASQUE COUNTRY
The Basque Government has moved forward with another round of income tax deflation, marking the third such adjustment this year under the regional framework.
CATALONIA
Catalonia’s government has reiterated that taxation levels will stay steady despite several fiscal shocks. It has also noted that Catalonia cannot imitate Andalusia’s approach, even as its own authorities approved the abolition of wealth tax in its most recent congress.