Cantabria government announces tax cuts for 2027

The Cantabrian government, led by the People's Party (PP), has announced a fiscal reform package for 2027 aimed at saving 25 million euros and addressing inflation. Key measures include a 5 percent deflation of the regional Personal Income Tax (IRPF) rates, personal and family minimums, and regional deductions to prevent "silent increases due to inflation."

The reform introduces new deductions for individuals over 65 regarding residential and day center expenses, forest owners for fire prevention, and those affected by thalidomide between 1950 and 1985. To assist young people with housing, the age limit for rental and home acquisition deductions will rise from 36 to 40 years. Additionally, the deductible base for housing accounts will increase from 6,000 to 10,000 euros annually.

To stimulate business investment and growth, the government is also adjusting IRPF and Property Transfer Tax. Specifically, the percentage for certain IRPF deductions will be doubled from 15 percent to 30 percent to encourage entrepreneurship and investment within the region.