Catalonia government approves 2026 budget of €36.2 billion

Catalonia budget 2026 public spending social welfare increase tax reforms Catalan Tax Agency

The Government of Catalonia has published its 2026 budget, amounting to €36.2 billion – a 5.3 % increase over the 2024 provisional accounts. The plan earmarks significant growth for health (€11.2 billion, +8 %), education (€7.4 billion) and housing (€2.1 billion) with a new social‑rental programme that doubles previous funding.

Revenue assumptions rely on modest GDP growth (2.1 %), a new tax package and higher central‑government transfers, expected to bring an additional €1.8 billion. The accompanying fiscal‑accompaniment law introduces several tax changes: a reduction in the regional IRPF band for incomes below €35,000, a levy on large tourist estates over 2,500 m², and a reform of property‑transfer tax for homes in municipalities with fewer than 10,000 residents. It also eliminates a 99 % inheritance‑tax exemption for estates above €1 million.

A new Catalan Tax Agency, slated to start operating in January 2027, will manage devolved taxes without authority over major state levies. The budget aims to stabilise public finances while addressing social demands and navigating negotiations with pro‑independence parties.