The Junta de Castilla y León announced a new tax package in early September. The key measure is an extension of tax relief on Impuesto sobre Sucesiones y Donaciones to more relatives, such as siblings, aunts, uncles and nephews. Until now, the main beneficiaries have been parents, children, spouses, grandparents and grandchildren. According to the regional government, the reform is due to take effect from the 2027 financial year.
President Alfonso Fernández Mañueco and First Vice-President Carlos Pollán presented the plans in Valladolid. The government says the extension aims to make it easier to accept inheritances and keep wealth within families. Specific implementing provisions are to be presented alongside the forthcoming amendment to the tax-related laws for 2027. The figures and detailed rules are therefore still subject to the parliamentary process.
According to the government, the package includes more than thirty other tax breaks aimed at families, young people, entrepreneurs and residents of rural areas. These include a “Cuenta Ahorro Vivienda Joven” for under-40s. Anyone saving capital through it to buy their first home is to be able to claim a deduction from Spanish income tax IRPF over several years. The Junta also plans to gradually reduce the autonomous minimum rate of IRPF. Incentives in the housing sector have also been announced.
The proposal marks the start of a legislative process in Castilla y León. The measures will only have legal effect once approved by the Cortes de Castilla y León and the amended legislation has been published. The government is promising tax relief for households; its actual impact will depend, however, on the final rates and thresholds, the implementing rules and fiscal developments in 2027.
The move is part of regional tax competition in Spain. Several autonomous communities have reduced or granted relief from inheritance and gift taxes for close relatives in recent years. Castilla y León is now explicitly extending this approach to second-degree relatives. The governing coalition sees this as a way to strengthen rural areas and promote home ownership among young adults; critics typically point to revenue risks and distributional effects. Parliament will decide how to balance these considerations during the 2027 budget process.
Editor: Mira Cadena (Article created with AI assistance).