Spain's regional governments advance tax reforms for middle class and aid exemptions

The Asturias regional government, led by President Adrián Barbón, is drafting a fiscal reform that would adjust the autonomous portion of the IRPF to reduce the tax burden on middle‑income earners. Barbón said the aim is to “not give joy to the large rents” and to focus fiscal effort on the middle and working classes. He expects to reach an agreement with coalition partner Izquierda Unida, which has insisted that any tax cuts be preceded by a concrete plan to strengthen public services.

At the same time, Spain’s tax authority has confirmed that the emergency “Dana” aid granted by the Generalitat Valenciana is exempt from IRPF, despite the lack of parliamentary ratification. The exemption means the aid will not be added to beneficiaries’ taxable income, providing immediate financial relief to families and small businesses affected by recent disasters.