The Junta de Andalucia has unveiled a package of seven tax cuts in a bid to win over voters at next year’s regional elections.
The measures are aimed at reducing the tax burden on residents while boosting economic activity.
The announcement, made as part of the 2026 regional budget, reflects the Junta’s ongoing strategy to position Andalucia as one of Spain’s most tax-friendly communities.
Here’s what’s on the table, and what it means for taxpayers.
- Gym and sports deduction
Residents will be able to deduct 15% of their spending on physical activity, up to €100 per person. This applies not only to gyms, but also to sports clubs, federations, and fitness centres. The goal: encourage healthier lifestyles and reduce long-term health costs. - Veterinary expenses deduction
Pet owners will also benefit, with a new deduction for vet bills and related costs. This measure supports responsible pet ownership and acknowledges the financial burden of animal care. It will apply to pets across different categories, with eligibility depending on the animal’s needs and situation. - Expansion of Personal Income Tax (IRPF) cuts
The government plans further reductions in regional IRPF rates, especially in the lower and middle brackets. These cuts are designed to put more money in the pockets of working families and pensioners, and follow previous reductions made since 2019. - Lower taxes on property transactions (ITP-AJD)
The Junta will continue reducing the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales) and the Stamp Duty (Actos Jurídicos Documentados), making it cheaper to buy or inherit property. This is especially relevant for young buyers and rural homeowners. - Inheritance and gift tax relief
Andalucía will maintain its favourable inheritance and gift tax policy, particularly for transfers between close family members. Since 2019, these taxes have been dramatically reduced or eliminated in many cases, and the government intends to preserve those advantages. - Wealth tax reduction
Andalucía has moved to suspend the regional Wealth Tax, positioning itself as a more attractive destination for high-net-worth individuals and entrepreneurs. The policy aims to encourage both investment and tax residency in the region. - Tax breaks for business and investment
New incentives are in place for companies investing in R&D, innovation, and job creation in Andalucía. These include deductions for capital investment and simplified tax processes for SMEs, as part of a wider push to attract national and foreign business.
According to Carolina España, Regional Minister for Economy and Finance, the tax reforms are part of a broader plan to stimulate the economy without cutting public services.
Since 2019, Andalucian families have saved €1 billion per year, and yet revenue continues to grow thanks to economic expansion and an increase in registered taxpayers.
The government argues that low taxes, combined with reduced bureaucracy and investment support, have turned Andalucía into a magnet for residents, businesses, and investors alike.
Read more Andalucia news at the Spanish Eye.
