The delegations of Alava, Biscay and Gipuzkoa they want increase the personal income tax declaration obligation to 19,000 euros per year, set at 14,000 euros. This figure is higher than the Interprofessional Minimum Salary, which in 2024 amounts to 15,876 euros and the objective is improve taxation for the lowest incomes. This is one of the main novelties of the Basque tax reform project, in addition to improve deductions for renting and purchasing housing, especially young people.
The tax revision agreed by the PNV and the PSE-EE will place the mandatory personal income tax declaration ceiling at 19,000 euros, above the inter-professional minimum wage. Furthermore, the Measures for young people are extended up to 36 years olddeductions for rent and purchase are improved for certain groups and an income threshold is established to be able to access them.
The three heads of the Treasury of Alava, Bizkaia and Gipuzkoa, respectively Itziar Gonzalo, Itxaso Berrojalbiz and Itziar Agirre, presented themselves at the general assemblies of their respective territories to explain to the joint groups the situation of the tax revision, with a harmonized proposal aimed at responding to common challenges.
With this revision, the three councils seek to continue to move forward in redistribution and progressiveness of the tax system and “support” the commitment to innovation and competitiveness of the economic and social fabric of Euskadi in the face of challenges such as demography, green taxation, gender equality, protection of low-income taxpayers income, young people, conciliation, housing, employment or pensions. .
Among the main new features, the the obligation to declare personal income tax increases to 19,000 euros per year (higher than the inter-professional minimum wage, which in 2024 amounts to 15,876 euros), and the current annual 14,000 euros, with the aim of improving the taxation of the lowest incomes.
Likewise, the agreement consolidates in the personal income tax the reduction of 15% (10 to 15%) for women entrepreneurs and establishes a deduction for reintegration into the labor market after caring for minors three years of 1,200 euros for women and 1,500 euros for men, and includes corporate tax deductions for companies that implement new measures to reconcile personal, family and professional life beyond of what is legally established.
The reform includes a redefinition of the youth group, so that the age is raised to 36and considers measures to promote access to housing both for rental and purchase, in addition to establishing in both cases a threshold for applying deductions of 85,000 euros from the taxable base.
A planned improve the tax treatment of owners in the case where the accommodation is intended to be the habitual residence of the tenants, the deduction percentage applicable to certain groups is increased, which in the case of young people will be 35%.
Measures will also be put in place to facilitate purchasing, such as extend the duration of housing accounts up to ten years.
Promotion of social security
In terms of Employment Social Security (EPSV), the receipt of benefits in the form of income will be favored and quality contributions will be encouraged, with stronger incentives for higher contributions.
There will also be deductions of 5% or 10% of personal income tax for the purchase of new zero-emission vehicles and 15% for the installation of charging stations, ski passes (expenses that are difficult to justify) already existing in agriculture, livestock breeding and the transport of goods are consolidated and a new 40% is introduced for the regime of artists, among other measures.
In order to meet the challenge of decarbonization of Basque industry, a new deduction of 35% is introduced for all renewable energy production installations that replace fossil fuel consumption installations. Additionally, bonuses in IBI, AIE and ICIO will increase.
