Just a day after Pedro Sánchez used the tax cuts of the Communities governed by the PP to justify the single financing of Catalonia, the government of Castile and León announced new tax exemptions from inheritance and gift taxes to promote generational change in the area. In addition, it launched the process of reducing the minimum income tax bracket from 9 to 8.5%, announced in June by Mañueco.
The press conference that followed the Government Council this Thursday had a marked economic character. The spokesman, Carlos Fernández Carriedo, pointed out the inclusion in the 2025 Budget Support Law of the reduction of the regional minimum rate from 9 to 8.5%, announced last June.
This is the fifth reduction achieved in the last four years, which places Castilla y León at the second lowest rate in Spain and will benefit 1.3 million taxpayers, who will save around 70 euros per person.
In the accompanying law, already sent to the Economic and Social Council for report, a new tax advantage is also promoted to facilitate access to housing for young people in the Community when it is created. a very low rate of three percent in the form of expensive real estate transfers for the acquisition, by young people, of their habitual residence in the urban environment of the Community, the price of which is less than 150,000 euros. This super reduced rate is added to the zero rate (0.01%) in force for young people in rural areas.
With this new tax incentive, one of the greatest challenges faced by young people, access to housing, is solved, their emancipation is encouraged and, in general, it attracts and fixes a young population in the Community. Thus, Castilla y León will be the autonomous community with the lowest taxes for young people regarding the rental and purchase of a habitual residence.
No more deduction from personal income tax
In addition, it goes from 15 to 20 percent, an improvement of 33 percent. the percentage of deduction from personal income tax applied to the rehabilitation of these dwellings. This improvement pursues a dual objective of social and economic policy: on the one hand, to promote the rehabilitation of existing housing stock in rural areas, and on the other hand, to facilitate access to it.
The beneficiaries of the 99% reduction in the basis for Inheritance and Gift Tax for the acquisition of agricultural holdings are also extended to collaterals due to consanguinity of the fourth degree of the deceased, as well as to any natural person acquirer who, on the date of the deceased’s death maintain a full-time employment relationship within the agricultural operation, with a minimum accredited seniority of three years.
These tax cuts are subject to the approval of the budget in the Cortes, where the PP does not have an absolute majority after Vox’s fear of autonomous coalition governments with popular governments. In this sense, Carriedo stressed that he would like “All political groups had the autonomy to decide based on what is good for Castilla y León and the interests of the region.”
For this reason, he stressed the willingness of the regional government to move forward “with an outstretched hand” and its willingness to “try to reach an agreement and also listen to all groups”, although he is aware that there are groups that “are more in disagreement” in favor of an increase in taxes.
