PNV and PSE agree on common fiscal framework for Basque territories

The PNV and PSE, governing partners in the Basque Country, have reached an agreement on a common fiscal framework for Araba, Bizkaia, and Gipuzkoa to be applied in 2027. This pact follows recent political tensions between the two parties regarding tax reforms in Bizkaia.

The measures aim to attract talent, encourage business roots, and promote youth employment. Key provisions include a 30% reduction in capital gains tax for certain transfers of businesses and self-employed activities, provided that activity and employment are maintained for five years. This reduction increases to 35% for transfers to micro-SMEs and 40% when the recipient is a woman under the age of 36.

Additionally, the agreement includes tax incentives for employees to participate in company capital, with benefits of up to 12,000 euros annually, and seeks to expand reserves for strategic projects and entrepreneurship. While the framework is common to the three provinces, each territory retains the ability to expand or complement the measures through negotiations with opposition parties, as the governing parties lack absolute majorities in Araba and Gipuzkoa.