Valencian Government Approves €160 Million Regional Income‑Tax Cut

The Generalitat Valenciana gave the green light to the 2026 Fiscal Measures Project, which includes a reduction of the regional personal income tax (IRPF) amounting to a projected €160 million saving. The reform lowers the regional tax rates across all brackets, with the greatest impact on middle‑ and low‑income earners. The government estimates that about 2.7 million taxpayers – almost the entire filing population in the community – will benefit, 72 % of them earning less than €30 000 and 87.3 % earning under €80 000.

The legislation also amends the Inheritance and Gift Tax to ease the generational transfer of family businesses, which represent more than 90 % of the Valencian corporate landscape. These measures aim to preserve the continuity and stability of the region’s economic fabric.