A dozen communities have reduced personal income tax in the last two years

A dozen autonomous communities (including Catalonia, which has only announced it) have carried out reductions in personal income tax either through deflation or rate reduction over the last two years, according to data collected by the REAF-Council of Economists. In a press conference broadcast on the internet, tax experts have warned that “legal uncertainty among taxpayers” is growing because “it is increasingly common for autonomous communities to approve tax measures throughout the year that modify those previously approved for the same year.” exercise”. An example is Catalonia, which has announced a one-point reduction for low-income personal income tax as of January 1, but it is not in force because it has not yet been able to carry out the budgets.

Arag√≥n Madrid and the two regional communities were the ones that deflated the rate. The tax experts highlighted that the correct deflation of personal income tax so as not to harm taxpayers is what neutralizes the salary increase and materializes in all sections. Deflation consists of lowering the ranges from which one type or another of personal income tax is paid to prevent a salary increase that seeks to compensate for inflation from ending up increasing taxpayers’ taxes.

In the Panorama of Regional and Regional Taxation report 2024 presented today, the tax experts highlighted that Catalonia and Valencia are the two autonomous communities where the tax cost of buying a property is highest. For a property valued at 150,000 euros, the tax on property transfers and documented legal acts is 15,000 euros compared to 9,000 in Madrid or Navarra, which are the communities with the lowest rate.