The Principality will raise income limits for accessing deductions and will incorporate partial benefits for those earning up to €50,000 in individual declarations. The measure is contingent on the approval of the 2027 regional budgets.
The Government of Asturias estimates that around 170,000 people will benefit from the Asturian tax system if the regional budgets for 2027 are approved. The reform will add approximately 45,000 more taxpayers to a deduction system that reached 126,000 people in the 2024 campaign, according to elfielato.es.
The Minister of Finance, Justice and European Affairs, Guillermo Peláez, identified the expansion of beneficiaries and greater progressivity as the two objectives of the changes. "Lower wages are not growing at the same rate as inflation, and we must address that circumstance," he stated. The proposal is contingent on the negotiation and approval of the regional accounts for the upcoming fiscal year.
One of the main changes will be in the income limits for accessing regional deductions. In individual declarations, the maximum to fully benefit from them will rise from €35,000 to €36,750, while in joint declarations it will increase from €45,000 to €54,000.
The reform will also open an intermediate range. Those declaring individual incomes between €36,750 and €50,000 will be able to apply a percentage of the deductions. In joint declarations, this range will go from €54,000 to €73,500. The specific amount of the benefit will need to be determined during the budget negotiations. The income limit for the deduction for celiac individuals will also be removed.
Housing is another significant part of the package. The Principality proposes a new reduction in personal income tax for the purchase or rehabilitation of the first habitual residence, subject to income limits, of up to €5,000 in the year of acquisition and €1,000 in subsequent years. It also plans to apply a zero rate on the first €150,000 of the price of that first home in property transfer taxes and documented legal acts, although a maximum value for the property will be established.
Additionally, there will be a 100% reduction in the donation tax for the first €150,000 given by close relatives to acquire the first habitual residence. Conversely, the Executive wants to tighten the taxation on subsequent purchases. The proposal establishes a rate of 10% on transfers for the acquisition of a second home and 12% for the third and subsequent ones, a measure that the Government presents as a tool against speculation.
Peláez contrasted this model with the personal income tax deflation advocated by the PP and argued that the latter benefits more as income increases. The minister also urged the popular party to specify how they would compensate for the loss of revenue resulting from their tax proposals.
The effective implementation of all these measures is pending the negotiation and approval of the 2027 regional budgets. If they do not go ahead, the changes will not come into effect.
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