The president of Cantabria, María José Sáenz de Buruaga, anticipates a 5% deflation in the regional income tax rate. This measure will be included in the tax law accompanying the 2027 budget.
According to El Diario Montañés, the Cantabria government will include a new tax cut in the Law of Fiscal and Administrative Measures that will accompany the 2027 budget. The president, María José Sáenz de Buruaga, presented the measures in the press room of the government headquarters in Peña Herbosa, alongside the Minister of Economy.
The main measure is the deflation of 5% in the regional income tax rate, which raises the limits of each bracket. The first bracket, taxed at 8.5%, increases from €13,000 to €13,650. The exempt minimum for taxpayers rises from €5,550 to €5,827, and for those over 65, it increases from €6,700 to €7,043. For those over 75, the minimum rises from €8,100 to €8,504.
Buruaga explained that changes in deductions, such as those for medical expenses, promotion of physical exercise, or housing accounts, affect around 84,000 deductions applied each year in Cantabria. According to the president, about 9,000 taxpayers will be able to apply deductions that they could not before. In housing, the age limit for deductions for rent, purchase, and contributions to housing accounts increases from 36 to 40 years.
When asked about the cost, Buruaga estimated that the reduction in income tax, housing, and dependency would result in about €27 million less in revenue. She downplayed the figure because, as she said, it is difficult to quantify the impact of the measures to generate employment and attract investment:
“We must stop viewing fiscal policy solely from an extractive, revenue-generating perspective.”
In the Property Transfer Tax, the reform creates a reduced rate of 7%, compared to the general 9%, for properties of industrial projects and technology centres, and for the initiation of new economic activities. The reduction drops to 4% if the investment is made in municipalities at risk of depopulation, and there is also a 4% rate for rural properties of active forestry operations. Additionally, deductions are planned for travel expenses and the stay of new residents, and for the purchase of shares in newly established companies.
The Executive plans to register the budget this Friday in the Cantabria Parliament but will need support to approve it. Buruaga considered it unwise to open negotiations during an electoral process and stated:
“It will be impossible to say no if one thinks of the general interest, unless each one seeks their own way out towards the elections in the budget.”
Until the Parliament approves the law, the new reductions will not take effect.
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