# Castilla y León economic growth and tax reform > Live situation record from CLSTR: https://clstr.news/situations/castilla-y-len-economic-growth-and-tax-reform > Updated: 2026-09-02T09:04:00.000Z. Sources: 15. Developments: 2. The economy of Castilla y León grew by 2.9% in the second quarter of 2026, outperforming the eurozone and the Spanish national average. This growth was fueled by a 4.4% increase in services, a 4% rise in manufacturing, and an 11.6% increase in capital investment, though the primary sector contracted by 8.2% due to inflation and poor harvests. In response to these economic conditions, the regional government introduced a fiscal reform package proposing 36 tax reductions for 2027. The plan aims to provide approximately 920 million euros in savings. Key measures include lowering the regional personal income tax (IRPF) minimum rate from 9% to 8.75%, with a long-term target of 8%. To support the rural economy, the draft law proposes eliminating certain taxes on the transfer of priority agricultural holdings and extending a 99% reduction in inheritance tax for agricultural holdings to a wider range of relatives and long-term salaried workers. Other measures include new deductions for youth housing, sports activities, and birth or adoption in rural areas. ## Timeline ### 2026-09-02: Castilla y León proposes 36 tax cuts for 2027 Castilla y León has proposed 36 tax cuts for 2027, featuring zero taxes on priority agricultural transfers and a reduction in the minimum regional income tax rate to 8.75%. 7 sources. https://clstr.news/cluster/castilla-y-len-proposes-36-tax-cuts-for-2027 ### 2026-08-31: Castilla y León economy grows 2.9% amid new tax reduction plans Castilla y León's economy grew by 2.9% in Q2 2026, outpacing the eurozone. The regional government announced 36 tax cuts to boost liquidity, while BBVA reported increased business financing in the region. 9 sources. https://clstr.news/cluster/castilla-y-len-economy-grows-29-in-second-quarter --- Cite as: Castilla y León economic growth and tax reform. CLSTR, https://clstr.news/situations/castilla-y-len-economic-growth-and-tax-reform