The Andalusian regional government has announced a reduction of the regional portion of income tax, IRPF, by 0.25 percentage points per year. The goal is a combined reduction of 1 percentage point during the term of office for income brackets below €60,000.

The announcement was presented by regional president Juanma Moreno on October 5, 2026. This concerns an announced tax change, the final form and application of which must be established through legislation.

When would the reduction take effect?

According to the news agency EFE, the intention is to include the first reduction in Andalusia’s 2027 budget. The Junta de Andalucía states in its official announcement that the reduction should be applicable from the next income tax return. However, this information should not be confused with a confirmed effective date or a final statement on which tax year will first be covered.

Until the final legal text has been adopted and published, the timing and specific conditions should therefore be regarded as preliminary.

Who would be covered?

The official announcement concerns income brackets below €60,000. This does not mean that individuals with a higher total annual income are automatically excluded from the tax reduction. According to EFE’s reporting, these individuals should also be able to benefit for the portion of their income that falls within the affected brackets. However, the exact calculation and scope must be confirmed in the final legislation.

What should taxpayers keep in mind?

A political announcement does not in itself change the applicable tax rules. It is therefore not yet possible to determine the individual tax savings based on the announcement.

At Global Accounting, we will follow the legislative process and provide information on the rules once decided, their entry into force, and the practical consequences for taxpayers.

Do you have questions about how tax changes in Andalusia may affect you?

Our team is happy to help you review your tax situation and answer questions about income tax and other tax obligations.

The information above is general and should not be considered individual legal advice.

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The information above is general and should not be regarded as individual legal or tax advice.

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DATA:

• • • Junta de Andalucía: official announcement on October 5, 2026.
    • Agencia EFE: reporting on October 5, 2026.