Andalusians saved 64.4 million euros last year in the Personal Income Tax (IRPF 2023) thanks to the deductions approved by the Government of the Junta de Andalucía. This amount represents an increase of 277.1% compared to 2018, resulting in 47.3 million euros more saved by Andalusians solely in deductions.
According to the provisional data from the State Tax Administration Agency on the results of the last tax campaign, the impact of deductions in the IRPF of 2024 in Andalusia (campaign 2023) represented an increase of 11.3% compared to the previous campaign. Also, the number of people who were able to benefit from these Andalusian deductions in the IRPF in the last campaign increased significantly, reaching 393,117 beneficiaries, 189.5% more than in 2018 (257,321 more taxpayers).
Among the deductions with the greatest impact were those related to educational expenses (151,783), for disability of the taxpayer (98,843) or another person (42,761), for large families (38,496), or for rental of main residence (31,989).
Regarding the savings for Andalusian taxpayers, the deductions with the greatest impact were those related to the housing fiscal package, whether for rental or purchase of the main residence (18.8 million). These are added to deductions for disability (18.5 million) and for educational expenses (13.9 million).
From 2018 to 2023, four new deductions were implemented or improved (and one temporary deduction valid only in 2020, for amounts donated in support of the fight against Covid-19) that Andalusian taxpayers can still apply: for the birth or adoption of children, for large families, for educational expenses, and for ecological donations. Of these new deductions, 214,927 IRPF declarants benefited in 2023.
Social nature of the deductions
The increase in benefits from deductions did not result in a decrease in revenue, according to data from the AEAT, as the Autonomous Liquid Tax (CLA), which is the part of revenue received by the Junta de Andalucía, amounted to 7,543.7 million euros in 2023, which represents 657.1 million euros more than in 2022 (an increase of 9.5%) and 2,515.3 million euros more than in 2018 (a 50% increase).
The key to the revenue increase lies in the rise in the number of declarations filed, as well as in the taxable base of Andalusian declarants. However, the impact of deductions, most of which are limited to taxable bases of up to 25,000 euros (or 30,000 in joint taxation), is focused mainly on declarations from taxpayers with medium and low incomes and especially vulnerable groups.
Right to deductions
The Minister of Economy, Finance, and European Funds, Carolina España, has emphasized the «social nature» of the tax policy of the Andalusian Government, noting that «higher incomes pay more and lower incomes benefit more».
She pointed out that the tax reductions approved in recent years are not an end in themselves, but part of the «fiscal revolution implemented by the Government of Juanma Moreno, thanks to which taxes have been lowered six times for Andalusians, aiming to boost the economy, attract new taxpayers, increase economic activity and consumption, and thus generate wealth and create jobs,» the minister concluded.
The minister noted that, within the six tax cuts made by the Andalusian Government since 2019, concerning the IRPF, the rates for all brackets have been reduced on the regional scale, the first brackets have been deflated by 4.3% in taxation, and the personal and family exempt minimums have been created, new deductions have been introduced, and most existing ones have been modified to expand their scope and increase tax benefits, especially for taxpayers with reduced taxable bases and vulnerable groups.
Carolina España also stressed the need for citizens to declare their personal circumstances when filing their tax returns in order to benefit from deductions, which range from renting or buying a home, hiring domestic help, teaching languages and new technologies, to contributions to environmental protection and the fight against climate change. There are also deductions for cohabitants with disabilities, birth of children, or for being a large family.
«Tax measures only have an effect if applied correctly,» the minister explained. «That’s why it’s important to remind citizens that they can take advantage of the tax benefits they are entitled to, and not miss out on them due to forgetting when filing their tax returns.»
The majority of deductions depend on personal circumstances. Therefore, it is the taxpayer who must declare the circumstances that make them eligible for these deductions when submitting their IRPF declaration.
The complete list of regional deductions can be found at the following link: