Andalucía to lower regional income tax rates and introduce eyewear deductions for under-25s

Speaking during a Q&A session at the Diálogos SUR forum, regional President Juanma Moreno explained that this latest series of measures will leave approximately 300 million euros in the pockets of residents. Combined with previous reforms implemented by his administration, total cumulative savings for taxpayers across the region will reach 2.1 billion euros, he claimed.

The headline measure of the package centers on personal income tax, known in Spain as IRPF. Because personal income tax in Spain is divided equally between the central government and the autonomous regions, the regional government's measures apply exclusively to the regional scale (tramo autonómico). Regional administrations hold no legal jurisdiction over the central state's half of the tax brackets.

Under the newly announced plan, the regional government will reduce its regional marginal tax bracket rates by 0.25 percentage points per year starting in the 2027 regional budget. Over the course of the four-year parliamentary term, this will accumulate to a 1 percentage point total reduction in regional tax rates rather than a 1% pro-rata discount on final tax bills. Taxpayers with individual annual incomes of up to 60,000 euros will be eligible for the rate reduction, while residents earning above 60,000 euros will see the tax relief applied to the first 60,000 euros of their taxable income.

Beyond income tax, the regional administration is introducing several targeted deductions to support families with living expenses and housing costs.

A new 15% regional tax deduction will apply to the purchase of corrective glasses and contact lenses for young people under the age of 25, capped at a maximum deduction of 150 euros per year. This relief will apply to all taxpayers regardless of income level, benefiting an estimated 245,000 residents across the region.

In terms of property transfer tax, known as ITP, the general rate will drop by 0.25 percentage points in 2027 to 6.75%. It will continue falling by 0.25 points annually until reaching 6% by the end of the term, bringing Andalucía into line with the Community of Madrid for the lowest rate in the country.

The reduced 3.5% ITP rate will expand to cover property purchases up to 200,000 euros for buyers under 35 years old, victims of domestic violence or terrorism, and residents in areas facing depopulation. The same reduced rate will apply up to 300,000 euros for large families or buyers with disabilities.

Housing measures also include a regional income tax deduction of up to 15% on rental costs for large families, capped at 1,200 euros per year, which is expected to assist around 4,000 households. Furthermore, inheritance and gift tax will be completely eliminated on the transfer of a primary residence between siblings, benefiting approximately 3,500 people.

Moreno concluded his address by calling on Andalusian business owners registered in Madrid for tax purposes to move their tax residence back to Andalucía, emphasizing that regional tax rates are now fully competitive.

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