Spanish regional governments propose tax cuts, housing and finance reforms

Alfonso Fernández Mañueco, president of Castile and León, outlined a programme of fiscal stimulus and social investment in his investiture speech. He announced a gradual reduction of the first IRPF bracket by 0.25 points per year, cuts to inheritance and donation taxes for close relatives, and a “zero‑tax” regime for rural property transfers. Housing measures include an 80 % increase in investment, construction of at least 5,000 protected homes, a youth housing‑savings account allowing deductions of up to €7,500, and incentives for renting vacant dwellings at affordable rates. Additional proposals target industrial expansion, agricultural support, and infrastructure upgrades such as restoring pre‑pandemic train services.

In Castilla‑La Mancha, finance councilor Juan Alfonso Ruiz Molina said he is ready to cancel his agenda to meet the national Ministry of Finance following the ministry’s invitation for bilateral talks on regional financing. He emphasised that the region’s financing model should reflect the real cost of public services rather than the taxable capacity of each territory and requested documentation covering the period to 2027. Ruiz Molina highlighted that Castilla‑La Mancha’s proposal differs from the central government’s agreement with Esquerra and seeks a model that places the burden of taxes and services directly on citizens.