Castilla y León proposes 36 tax cuts for 2027

The regional government of Castilla y León has introduced a draft law proposing 36 tax reductions for 2027, aimed at supporting the rural economy and lowering the tax burden. If approved by the regional courts, the measures are expected to enter into force on January 1, 2027.

Key agricultural measures include the elimination of Property Transfer Tax and Documented Legal Acts Tax for the transfer of priority agricultural holdings, including associated machinery. To ensure continuity in farming, the 99% reduction in Inheritance Tax for agricultural holdings will be extended to relatives such as cousins, uncles, grandparents, and great-nephews, as well as long-term salaried workers.

Personal income tax (IRPF) will see a reduction in the minimum regional rate from 9% to 8.75%, with a long-term goal of reaching 8%. Additionally, the plan includes increased deductions for birth or adoption in rural areas and new deductions for sports-related expenses. The government estimates these measures will result in a total savings of 920 million euros.