Andalusia’s president, Juanma Moreno, said the region’s “new normality” in recent years was based on stability, sustained economic growth above the Spanish average, continued job creation and meeting targets. He attributed this to legal certainty and dialogue promoted by the regional government with public administrations and economic, social, trade union and business groups.
Speaking at a discussion organised by the newspaper SUR in Málaga, Moreno outlined priorities for the newly begun legislature, including deregulation, tax cuts, attracting major strategic projects and strengthening Andalusia’s position in homebuilding. He announced that the regional government would reduce personal income tax by 0.25 percentage points each year, with the first cut applying to the next tax return. By the end of the legislature, the reduction will total one percentage point for income bands below €60,000.
Moreno said seven previous tax cuts introduced since 2019 had saved Andalusians €1.8 billion a year. He estimated that the latest measure, the eighth cut, would add another €300 million in annual savings, bringing the total to €2.1 billion. He said Andalusia would remain one of Spain’s regions with the lowest taxes for residents.
Housing will be among the areas affected by new tax measures. The regional government will cut the property transfer tax by 0.25 percentage points to 6.75%, and repeat the reduction each year until it reaches 6% at the end of the legislature. Moreno said about 147,000 people would benefit.
People under 35, victims of gender-based or terrorist violence, and residents of municipalities at risk of depopulation will be able to use the super-reduced 3.5% rate when buying a home costing up to €200,000, increased from the current €150,000 limit. The limit will rise to €300,000 for people with disabilities and large families.
Large families will also be able to deduct 15% of their rent, up to €1,200 a year. The measure is expected to benefit 4,000 families. Moreno also recalled the previously announced removal of inheritance and gift tax when a home is inherited between siblings, which he said would benefit 3,500 people a year.
The president announced a 15% deduction for spending on glasses and contact lenses for children under 25, capped at €150. It will be available to all taxpayers regardless of income and is expected to help 245,000 Andalusians.
Moreno said the regional government currently had more than €1.475 billion in works under way in Málaga province. He cited the Málaga Metro and the Virgen de la Esperanza Hospital, which is to receive a total investment of €1 billion. He also identified tackling drug trafficking as a key challenge, saying the problem affected almost the entire region and had one of its main centres on the Costa del Sol.