Residents of Andalusian municipalities, where more than half of the communities are affected by depopulation, can take advantage of tax incentives introduced in 2019. The Official Gazette of the Government of Andalusia has released the list of municipalities with fewer than 3,000 inhabitants, totaling 426. These include 69 in Almería, 11 in Cádiz, 37 in Córdoba, 121 in Granada, 49 in Huelva, 56 in Jaén, 59 in Málaga, and 24 in Seville.
People living in these towns are eligible for a 400-euro deduction for each child born or adopted, or for each child in foster care. Additionally, when buying a home, they can save up to 6,750 euros. According to the Minister of Economy, Finance, and European Funds, Carolina España, residents of these municipalities have seen a reduction in the Property Transfer Tax and Legal Documented Acts (ITPAJD) rate, dropping from 8% to 3.5%, provided the property is used as a primary residence and its value does not exceed 150,000 euros.
Carolina España emphasized that these measures are part of the broader effort to encourage people to settle in rural areas, aligning with various other initiatives in the tax policy of the Government of Juanma Moreno. “This policy has transformed us from a fiscal burden to the second-lowest tax-paying region,” she said. “And the way we manage has led to an increase in the number of taxpayers,” she added, noting that 200,000 new taxpayers registered for income tax last year alone, and 778,000 since 2018.
The Minister also highlighted the growing number of beneficiaries of tax deductions introduced since 2019, including those for the birth or adoption of children, large families, educational expenses, and eco-friendly donations.
Nearly 215,000 Andalusian taxpayers have benefited from these four deductions, saving a total of 21.6 million euros, which accounts for 33.6% of the overall savings from tax deductions in 2023.
